The tax season has already started off in disarray due to the last minute tax tweaks the fiscal cliff situation brought about. The IRS had to postpone the tax season start date and push back the filing of some types of returns.
The pending government sequestration will create a further direct impact. If you have not filed your 2012 taxes it will affect you and not in a good way.
Sequester, or sequestration, is the term for the general cut in government spending coming soon. Due to the Budget Control Act of 2011, Congress has to complete and approve a budget by Jan. 1, 2013 (since extended to Feb. 28, 2013), or the government will immediately cut spending and furlough staff across all areas of the federal government — sequestration, or in other words staff layoffs and other impacts.
The spending cuts and personnel layoffs will affect programs in the IRS. So while tax refunds will not be affected by the sequester, if you need any help during the filing process, you’re going to have a much harder time after March 1.
An IRS furlough means the following for taxpayers:
- There will be even fewer IRS operators to take taxpayer calls and answer questions.
- The taxpayer assistance centers will operate with even fewer people and hours than currently during a time that is expected to be even busier than normal.
- If there are issues, even small ones, they will take much longer to address and get corrected with your return.
This is a complex tax year, not a year to go it alone at tax time. Schedule an appointment with one of our tax professionals to help navigate your through this rough tax year.