Early Tax Filers Tumble Over the Fiscal Cliff

Posted on Jan 23, 2013

If you were paying attention to the news at the end of 2012, you may have noticed a lot of references to the “fiscal cliff”—a series of budget changes scheduled to take effect in 2013 unless Congress got its act together and reached a workable compromise. Well, not only did the U.S. government approach the brink of that cliff, it also temporarily tumbled over it, since a compromise wasn't inked until January 1, 2013.

What does this mean for the average Oklahoma taxpayer? Well, if Congress had reached an agreement earlier, the IRS could have programmed its computers to reflect the new reality, starting in 2013. As events unfolded, though, the feds legally were required to retain certain pesky lines of computer code, meaning the entire IRS payment system had to be “rebooted” after January 1. The result: the IRS announced it would not begin processing tax returns until January 30, over a week past its usual start date.

If you are one of those rare people who file your taxes bright-eyed and bushy-tailed in the middle of January, this has an inconvenient consequence, according to a story in USA Today: your anticipated tax refund will be delayed for the same amount of time. So, if you were planning to pay your February rent with that $3,000 refund, you had better re-figure your finances and expect to receive your check at least one week later than usual.

Are you an Oklahoma taxpayer who has been hit with a big back tax bill by the IRS? Call the Oklahoma tax experts at Travis W. Watkins, PC (800-721-7054) to find out what we can do for you!

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