"Groundhog Punxsutawney Phil emerged from his hovel Wednesday and saw his shadow, which -- according to tradition -- means that spring will come early this year." (CNN reports). However, Phil doesn't know anything about taxes or tax season.
Spring may be early, but tax season looks like it might be late. While TeamDKB is off to a great start to the 2011 busy season, there are many external factors that may mean a late tax season.
First, the April 15, 2011 due date has been extended to April 18, 2011 due to April 15 falling on a Saturday and Monday holiday. We try to complete client work well in advance of the extended due date. However, we will always have clients who "use the extra few days". I would encourage you to assemble your tax data early to make sure you enjoy a beautiful spring weekend starting on April 15.
The IRS has delayed final release of a variety of tax forms. Much of this delay was caused by Congress's late action on 2010 tax legislation. Final action on 2010 legislation was not completed until December 17, 2010. This has caused delays in electronic filing submissions due to IRS system modification requirements. We have completed many 2010 tax returns and are not able to file them for clients because the IRS is not ready to accept them.
The IRS has granted 1099 filing extensions to many banks and brokerage firms. Typically, 1099's are due to recipients by January 31. Extensions have been granted so banks and brokerage firms can properly complete the forms. Past tax seasons have been marked with amended form 1099's due to the updates of data supplied to these firms that was not available prior to the January 31 due date. This IRS has agreed with these firms that "getting it right the first time" is better than "I'll fix it later". Extended due dates vary from February 15th to 28th.
Even with these delays we are working hard to have an early Spring...just like Phil.
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