Why the 2015 Tax-Filing Season Will Be Tougher Than Usual ?
The 2015 tax-filing season is almost upon us. The Internal Revenue Service (IRS) announced at the end of December that it will begin accepting tax returns for the 2014 fiscal year starting Jan. 20. But the 2015 tax season could see some major hang ups for taxpayers. It’s the first time taxpayers will have to include information in their tax returns to meet the requirements of the Affordable Care Act. On top of the newly complicated tax code, Congress cut the IRS’ budget and the agency is operating with fewer personnel. IRS Opens 2015 Tax Season With Fewer Resources: IRS is operating on less money and manpower, reports CNN Money. The IRS’ budget for 2015 is 10 percent lower than it was in 2010, even though costs for the agency have increased since. IRS staffing is down 8 percent, while money allocated for staff training was cut by more than 85 percent. Affordable Care Act Complicates 2014 Tax Code: Cuts to the IRS’ budget might have been less worrisome, save for the new rules introduced by the Affordable Care Act (ACA) and other legislation. As tax filers deal with new forms and rules for the first time, it’s expected to be a particularly confusing and frustrating tax year for many filers; but the IRS will have less manpower and resources to offer support. The 2015 tax season marks the first return that taxpayers will fill out following the enactment of the Affordable Care Act, which includes many provisions that relate directly to taxes. Taxpayers will be required to provide proof of 2014 insurance coverage, as well as indicate whether they received tax credits to help cover insurance costs. “The ACA is going to result in more confusion for existing clients and many taxpayers may well be very disappointed by getting less money and possibly even owing money,” said Charles McCabe, president of Peoples Income Tax and the Income Tax School, to The Wall Street Journal. Source: http://www.gobankingrates.com