With new tax law changes, which were enacted by Congress and signed by President Barack Obama in December 2010, the Internal Revenue Service (IRS) will require additional time to reprogram its processing systems, meaning some taxpayers will have to wait to file their taxes.
"The changes mainly affect those who itemize their deductions using the Form 1040 Schedule A," Stadler and Company Brazil office manager Tony Smiley told The Brazil Times. "It has created a delay in processing capabilities for the IRS for a couple of weeks, meaning those itemizing their deductions would have to wait to file a complete return until mid-late February."
Smiley added taxpayers do not necessarily have to wait to file, but those affected by the changes would be wise to do so.
"Taxpayers could file their return, but it would be incomplete without the itemized forms, meaning they would be charged an amending fee when the rest of the forms are submitted," he said. "So personally, I would recommend waiting that little extra time so complete returns can be filed at one time."
In addition, taxpayers will also be affected by this delay if they are claiming the Higher Education Tuition and Fees Deduction or Educator Expense Deduction.
Smiley added it is also important for residents to note the change in Tax Day for 2011.
Instead of the typical filing deadline of April 15, the date has been pushed back to Monday, April 18 this year.
With Emancipation Day -- celebrated as an official public holiday in Washington D.C., on April 16 since 2005 -- falling on a Saturday this year, workers in D.C. will honor the holiday on April 15, pushing back the deadline to file taxes one business day to the following Monday.
"It's a holiday only celebrated in Washington D.C., but last-minute taxpayers across the country will benefit from the extra couple days to file," Smiley said.
In addition, Smiley told The Brazil Times Indiana taxpayers will have a new option for paying their state taxes starting this year.
"In years' past, those who owed state taxes had to pay it all in one lump sum," he said. "Now, the state has created a tool for residents to set up a payment plan."
The Indiana Department of Revenue set up a website (www.intaxpay.in.gov) in which taxpayers who owe individual income taxes and businesses which conduct retail sales may set up payment arrangements.
According to the site, certain requirements are needed in order to set up payments, including either a minimum of $100 owed, with 10 percent down, for individuals or a minimum of $500, with 20 percent down, for those setting up arrangements as part of the Registered Retail Merchant Reinstatement.
Also, individuals owing between $100 and $500 may set up a plan for up to 12 months, while those owing more than $500 may set a payment plan term of no more than 24 months.
The site also notes those setting up a payment plan will still be required to pay a 10-percent penalty and interest, which will accrue on the unpaid portion of the taxes until they are paid in full.
"If you owe less than $100, the state still wants taxpayers to pay it all at once," Smiley said. "But, with a payment plan option now available, those who owe larger sums will be able to spread it out over time."