JANUARY 2 2011 22:13h
Late tax law delays processing returns
The bill President Barack Obama signed Dec. 17 kept rates unchanged and maintained full itemized deductions for high-income taxpayers. The 50 million taxpayers who itemize will have to wait a bit before filing, CNNMoney reports.
"The majority of taxpayers will be able to fill out their tax returns and file them as they normally do," IRS Commissioner Doug Shulman said. "The IRS will work through the holidays and into the New Year to get our systems reprogrammed and ensure taxpayers have a smooth tax season."
The delay affects both paper and electronic filers who itemize deductions on Form 1040 Schedule A. That includes those claiming the new Educator Expense Deduction, which credits grade school teachers for expenses up to $250.
It also includes those claiming deductions for up to $4,000 of college tuition, which is claimed on Form 8917.
The IRS did not say when it will be able to process the returns, but it expects to announce the date "in the near future."
WASHINGTON, Jan. 2 (UPI) -- Thanks to the last-minute U.S. tax bill, the Internal Revenue Service says it cannot begin processing itemized income tax returns until mid- to late February.