Because of late passage of the massive tax cut and extenders package by Congress at the end of December 2010, taxpayers who itemize deductions and certain others will need to wait until mid- to late February 2011 to file their individual tax returns, the IRS has cautioned. The IRS must reprogram its computer systems for the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act), In addition, the IRS reported that Form 1040, Schedule A will need to be updated as well.

Delay for some taxpayers
Taxpayers will need to wait to file if they fall in any of the following three categories:

(1) Taxpayers claiming itemized deductions on Schedule A.

(2) Taxpayers claiming the higher education tuition and fees deduction.

(3) Taxpayers claiming the teacher’s classroom expense deduction.

Although the IRS estimates that updated systems will be in place by mid-to late February 2011, the agency will announce a specific date in the near future when it can begin to process these returns. The delay affects taxpayers who e-file and file paper forms.

Despite the delay for itemizers, the majority of taxpayers will be able to complete their tax returns and file them as they normally do each year, IRS Commissioner Douglas Shulman said.

The IRS will post updated information in its website, www.irs.gov. Please call our office if you have any questions.