Tax returns will begin processing by the IRS Jan. 30 for the majority of filers, according to a Tuesday report by CNN.
Why did the IRS change the date from Jan. 22 to the end of the month? Congress didn't get a new provision passed until after New Year's Day 2013. As a result the IRS had to update changes to their forms in the computer system.
The IRS starts processing tax returns Jan. 30 for over 120 million filers. Those claiming residential energy credits, depreciation of property, or general business credits must wait until late February or March to submit their returns due to forms requiring more involved programming. Filers in this group tend to have more complicated tax returns and normally file them closer to April 15 -- or file an extension.
This is good news for many filers who didn't think their tax returns would be completed until after Jan. 30. Had Congress not acted on the provision, filers may have had to wait until late March before submitting returns or collecting refunds if owed.
Two years ago 9 million tax filers were affected when it took until mid-December for President Obama and lawmakers to reach an agreement. Their returns weren't processed until mid-February.