Woodbury, NY (PRWEB) January 25, 2014
Taxpayers will experience a short delay to the start of the 2014 filing season, but passage of the Bipartisan Budget Act of 2013 averted the possibility of an IRS shutdown in January. The budget agreement, however, did not include any tax provisions, and tax reform must find a new vehicle to move forward in Congress. Meanwhile, the IRS starts 2014 with a new leader who promised to restore public trust in the agency after a troubled 2013.
Gettry Marcus CPA, P.C, a leading tax and forensic accounting firm, discusses the delayed filing season, continuing tax reform discussions and the new IRS leader.
2014 filing season
To end the October government shutdown, Congress passed a stop-gap funding bill to keep the IRS and other federal agencies open through mid-January 2014. Many tax professional groups warned that a government shutdown in January, even for a few days, would result in significant delays in tax return processing and refunds. The Bipartisan Budget Act of 2013 authorizes funding for the federal government for two years.
The start of the 2014 filing season, however, will be slightly delayed because of the October shutdown. The IRS needs additional time to reprogram its return processing systems. The original start date of the 2014 filing season was January 21, 2014. In December, the IRS announced that the 2014 filing season will start on January 31. The IRS will not process any returns (electronic or paper) before January 31, 2014.
Most business filers can begin filing 2013 returns on January 13, the IRS reported. These include filers of Forms 1120, U.S. Corporation Income Tax Return; 1120S, U.S. Income Tax Return for an S Corporation; and 1065, U.S. Return of Partnership Income. However, the January 13 start date does not apply to business owners that report their incomes on Form 1040. They must wait until January 31.
Many tax reform proposals were introduced in Congress in 2013, but lawmakers deferred action until 2014. The leaders of the House and Senate tax writing committees have both said they want to move tax reform legislation in 2014 but the extent of any reform—and overall enthusiasm in Congress for reform—is unclear. Some lawmakers want a complete overhaul of the Tax Code (the last major tax reform was in 1986); others want to a more piece-meal approach. Lawmakers are also divided over whether reform should be revenue neutral or if reform should raise new revenues.
New IRS Commissioner
In May—after news broke of the IRS selecting applications from conservative groups for tax-exempt status for extra scrutiny—President Obama appointed Daniel Werfel to serve as Acting Commissioner. The President instructed Werfel to launch a top-down review of the agency. Since May, several senior IRS executives resigned or retired and Werfel appointed new top managers. Werfel also instituted cost-saving measures, such as eliminating employee conferences, curbing employee travel and not paying bonuses. Werfel, however, was never intended to serve permanently at the IRS and President Obama nominated John Koskinen to be Commissioner. The Senate approved Koskinen’s nomination in December.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.
Gettry Marcus CPA, P.C. is a top New York City and Long Island CPA firm with offices in Woodbury, Long Island and New York City. We provide accounting, tax, and consulting services to commercial businesses, high net worth individuals and various industries which include real estate and health care. We have one of the premier and most credentialed business valuation, litigation and forensic accounting groups in the New York Area. Our experience in diverse industries and a highly talented and experienced professional staff gives us the ability to share valuable insights into our clients’ businesses, to better understand their goals and problems and to help them attain the vision they have for their company.
Gettry Marcus is "Always Looking Deeper" to build value for our clients.
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