The IRS has reported on its social media feeds that it is processing returns with Form 4562, Depreciation and Amortization, and returns with Form 8863, Education Credits, and expects to start accepting the remaining forms affected by the American Taxpayer Relief Act of 2012 (ATRA) during the first week of March. The IRS also asked taxpayers to use the popular Where’s My Refund? online tool and the refund feature on the IRS2Go smartphone app only once a day because of very high usage. At the same time, the Obama administration has cautioned that pending sequestration will impair the IRS’s customer service and enforcement operations.
We have always been concerned about the continuing delay in the release of ATRA-affected forms. The late release of the forms compresses the time that a preparer has for return preparation and review and delays refunds that clients are due. Our work load “compression” is a concern for both the March 15 deadline for business returns and the April 15 deadline for individual returns.