Due to the renewal of “extender” provisions to the tax law that expired in 2013, the IRS announced that tax season will open as scheduled, and they will begin accepting the electronic submission of returns on January 20th.
The legislation extended tax breaks for individuals and businesses as well as a savings program for the disabled. Business deductions that will now be allowed through 2014 include some of the following:
- Bonus depreciation, allowing an additional first-year deduction of 50% of equipment costs
- Section 179 rules which allow for $500,000 on an acquired property for business use
- Exclusion from capital gains tax of 100% of small business stock sold by an individual
- The Work Opportunity Tax Credit for hiring military veterans and other qualified individuals
- The Research Tax Credit
- New Markets Tax Credit
A number of other deductions are included in the extension, which is detailed in an article by Michael Cohn entitled “Passage of Tax Extenders Contains Key Tax Breaks” on the website AccountingToday.
Before the extension of this legislation, the IRS was concerned that the elimination of those tax breaks would make it difficult for them to effectively update their systems in time for tax season. However, at the beginning of December, IRS Commissioner John Koskinen said, “We have reviewed the late tax law changes and determined that there was nothing preventing us from continuing our updating and testing of our systems. Our employees will continue an aggressive schedule of testing and preparation of our systems during the next month to complete the final stages needed for the 2015 tax season.”
In addition to proceeding with tax season as planned, the IRS reminds taxpayers that electronic filing is the most effective way to submit a return and ensure a timely refund. Visit the official IRS website for more information.
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Resources
–. “Tax Season Opens as Planned Following Extenders Legislation.” 29 December 2014 IRS.gov
Cohn, Michael. “Passage of Tax Extenders Contains Key Tax Breaks.” 17 December 2014 AccountingToday.com
