President Obama signed legislation that extended for one year the “Tax Extenders.” Tax Extenders include items such as the deduction for sales tax, mortgage/cancellation of debt tax relief, “bonus” depreciation, and many others. As the legislation didn’t have much in the way of surprises and it was signed into law in December, it’s likely tax season will begin either on time or just a week or so late.
That said, it’s not going to be a pleasant tax season for tax professionals, the IRS, or the taxpaying public. The IRS is anticipating answering just 50% of the phone calls it receives. On the bright side, since many of the answers given on the IRS help line are wrong this might have a positive component.
Additionally, this year features the first year of ObamaCare tax forms and the new property/capitalization/repair regulations.
These are such pleasant thoughts to think about on the last day of my vacation….