Already Filed Your Taxes? Early Filing May Cause Tax Problems

Last Minute Law Changes Require Tax Forms to be Updated

The following is a summary for business tax return updates and announcements as well as for individuals. Those that can benefit from this post are not for our usual readers who are in need of tax help. Instead, this post offers tax help for those who are in compliance and have already filed their taxes. This post essentially helps taxpayers at the complete other end of our spectrum of readers. If you have filed any of the described returns before the dates mentioned below contact your tax preparer for tax help.

The Filing Season for Businesses

Effective February 4 businesses can start filing their tax returns for this season. Form 1120 which is a corporation return, a 1120S which is subchapter S returns and form 1065 for partnerships can all be considered businesses for this date.

Forms 720 Quarterly Excise Tax Return also can be filed now except that businesses using this form and filing line 13 and 14 cannot file electronically now. Form 990 for Exempt Organization can be filed now as well. Again, if you filed your business returns prior to February 4, 2013 contact your tax preparer and see if you may have a tax problem that brings about collection actions the IRS can take.

The Last Minute Tax Changes Affect Many Forms and Taxpayers

There will be some filers affected by the last minutes changes in January of this year like the American Taxpayer Relief Act (ATRA) enacted by Congress on January 2, 2013. Those affected will have to wait until the forms are updated. The IRS will soon announce when the individual returns can be filed as well as businesses affected by these changes in the forms resulting from the new laws. The IRS is now testing the programming and process testing for the ATRA. Here are some examples of the issues and the tax forms affected and need to wait beyond Feb 4:

Form 3800 General Business Credit

Form 4136 Credit for Federal Tax Paid on Fuel

Form 4562 Depreciation and Amortization (Listed Property included)

Form 5695 Residential Energy Credit

Form 5884 Work Opportunity Credit

Form 8396 Mortgage Interest Credit

Form 8582 Passive Activity Loss Limitation

Form 8859 District of Columbia First-Time Home Buyer Credit

From 8908 Energy Efficient Home Credit

8909 Energy Efficient Appliance Credit

Tax Returns with Education Credits Also Need Filing Delayed

The IRS announced that for those who need to file form 8863 to claim American Opportunity Tax Credit or Lifetime Learning Credit should begin filing their tax returns by mid-February because the IRS is testing the processing system in this regard as well. This delay will impact other education related deductions such as tuition and fees deductions and interest deductions for student loans. The IRS is asking CPAs, enrolled agents, and tax attorneys as well as other preparers to advise their clients to wait on form 8863. For those who self prepared their tax returns prior to mid February and benefited from form 8863 may incur tax problems from the early submission. Although the chance is slim, it should at least be made aware of.

When Filing an Amended Tax Return

If in the process of reviewing an already submitted tax return you discover that you are entitled to a refund more than what you originally claimed, do not file the amended return as soon as you discover the problem. Instead, wait first to get your refund as originally calculated and when you receive that refund, then and only then, file the amended return. This process may take eight to twelve weeks. That is the time that you may have to wait for filing the form 1040X (Amended Return form) if you are an individual taxpayer.