IRS Filing Delay May Impact Some N.C. Taxpayers

Date: January 25, 2011

Due to technical issues at the IRS, individual income taxpayers who itemize deductions on their federal tax returns will need to wait until Feb. 14 to file their income taxes with the Internal Revenue Service and the N.C. Department of Revenue.

The IRS needs extra time to reprogram its processing system for tax code changes passed by Congress in late December. The delay will affect people who itemize deductions on the federal Form 1040 Schedule A, as well as other deductions like state and local sales taxes.

Taxpayers who take the standard deduction can file as soon as they have all the information required to complete their returns.

Taxpayers who should wait until Feb. 14 include:

  • Those who itemize deductions on the federal Schedule A. Those deductions typically include mortgage interest, charitable donations, state and local taxes and medical/dental expenses.
  • Those who claim the higher education tuition and fees deduction, which covers as much as $4,000 of tuition and fees to a post-secondary institution (college, community college or university).

Affected taxpayers can begin preparing their returns. Many software providers and tax preparation professionals are now accepting these returns and will hold them until the IRS begins processing them on Feb. 14.

Filing error-free returns is the best way to have your tax returns processed and receive your refunds quickly. North Carolina refunds will be delivered within 45 days of when the return is received by the Department of Revenue, except for returns with errors or that are subject to review.

Here are some tips for filing returns without error:

  • File your federal and state tax returns at the same time. The IRS reviews your return when submitted electronically and will notify you of any obvious errors. Failure to file both returns together may require some taxpayers to amend their North Carolina return if the IRS detects any errors.
  • File electronically and request direct deposit of your refunds. Electronic filing includes a check of your math, which can help you avoid errors.
  • Don’t file until you receive all your tax documents (W-2s, 1099s, etc.). Employers and other institutions are required to mail out W-2s and other documents by Jan. 31. If you file without some of those documents, you increase your chances of having to file an amended return or having your return reviewed for errors.

Click here to review information on the IRS delays.

 


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