This blog was last updated on June 27, 2021
IRS Commissioner John Koskinen has once again stated the 2015 tax filing season could be delayed. This time he cited certain provisions of the Affordable Care Act (ACA) as the cause in addition to Congress’ continued inactivity regarding tax extenders, according to AccountingWeb.
The commissioner made his statement at the 2014 Fall Meeting of the Council for Electronic Revenue Communication (CERCA), where he was the keynote speaker. He noted this upcoming tax filing season will be the first time the premium tax credit and shared responsibility payment will be noted on Form 1040, U.S. Individual Income Tax Return. However, the agency doesn’t have adequate funding to tackle the new tax information that will be submitted by taxpayers, Forbes reported.
Additionally, Congress has given the IRS other new laws to implement, including the Foreign Account Tax Compliance Act (FATCA). However, lawmakers have not granted the finances necessary for these tasks. The source noted the agency sought $430 million in 2014 to implement reporting provision the ACA but didn’t receive any of the requested funding.
Budgetary concerns are key IRS issue
The IRS has been experiencing budget cuts for some time, and certain funding reductions threatened to slow the ACA’s implementation. However, the agency has made the health care law a priority, stretching what money it has to ensure the ACA is smoothly instituted.
Despite the headway the IRS has made on certain issues, Koskinen continued to harp on the need for more adequate funding at the CERCA meeting.
“The ongoing decline in IRS resources puts significant strains on our ability to provide adequate services to taxpayers and maintain a robust compliance program,” Koskinen said, according to AccountingWeb. “The IRS budget for fiscal year 2014 was set at just under $11.3 billion, which is nearly $900 million below 2010.”
He went on to say the IRS is also understaffed though it has more new provisions to implement. Compared to 2010, the agency has 13,000 fewer full-time employees. These budgetary concerns, along with Congress inaction on tax extenders, which Koskinen detailed in a letter to U.S. Senate Finance Committee Chairman Ron Wyden, D-Ore., could lead to noticeable delays and other disruptions. Considering certain confusion that still exists regarding the ACA and FATCA, employers and financial institutions that must report under the respective laws should consider how the delays could affect their ability to get assistance from the IRS.
