More IRS tax forms were flagged today as being unavailable for E-File, expanding the delay in Form 1040 tax preparation for more taxpayers. Until at least mid February. News was sent to CPAs and tax software companies that the initial list of unavailable tax forms has now expanded, up from the first understated IRS news bulletin in December. Previously, the IRS quietly announced that the re-instatement of three cancelled tax provisions would delay E-File for some taxpayers secondary to unavailable tax forms. Please see our previous postings for the initial information.
One of the tax provisions involved Schedule A of Form 1040 which is used to itemize deductions. Schedule A is a typical IRS tax form with six sub sections, each with its own set of rules. They include medical expenses, taxes paid, interest paid, casualty losses, charitable contributions and miscellaneous deductions. As part of prudent income tax preparation, most CPAs routinely prepare Schedule A to compare the client’s potential itemized deduction to the IRS standard deduction. Under most circumstances, Schedule A is just too complex for “eyeballing”. And it is where most tax refunds are generated. So a delay in availability in Schedule A affects a lot of folks.
If you’d like a free initial consult with a tax accountant practicing in a Wilmington NC CPA firm, please consider calling us at (910) 399-2705. We offer a friendly mix of current tax expertise, future tax positioning and customer service.
We don’t feel the IRS is to blame. Congress continually delayed legislation and just trapped the IRS into last minute tax form modification. But they did soft pedal the announcement as to the number of taxpayers affected and issues involved. Now they’ve extended the E-File deadline to April 18 by choosing to celebrate Emancipation Day, a Washington DC holiday – go figure!
The list of currently known affected tax forms is:
Schedule A, Itemized Deductions
Form 3800, General Business Credit
Form 4684, Casualties and Thefts
Form 5405, First-Time Homebuyer Credit and Repayment of the Credit (Page 2)
Form 6478, Alcohol and Cellulosic Biofuel Fuels Credit
Form 8834, Qualified Plug-in Electric and Electric Vehicle Credit
Form 8859, District of Columbia First-Time Homebuyer Credit
Form 8910, Alternative Motor Vehicle Credit
Form 8917, Tuition and Fees Deduction
Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit
We’re a Wilmington NC CPA firm specializing in business and individual IRS and NC income tax returns. But of course we offer a full range of CPA accounting services like payroll processing, financial accounting, business consulting and even QuickBooks training. For a free initial consult, please call us at (910) 399-2705.
Our small business and estate tax preparation expertise includes the following:
- Schedule C and NC D400: Sole Proprietors and SMLLC(s).
- Form 1120 and NC CD405: C Corporations and LLC(s).
- Form 1120S and NC CD401S: S Corporations and LLC(s).
- Form 1065 and NC D403: Partnerships and LLC(s).
- Form 1041 and NC A101: Trusts and Estates.
Many clients need these small business tax forms prepared as well:
- Form 941 – Payroll tax form preparation.
- Form 940 and NCUI 101 – Unemployment tax form preparation.
- County business property tax listing preparation.
- NC Sales Tax preparation (E500).