From multiple sources comes word that the IRS will not accept returns with Form 8863 (Education Credits) at this time. Any returns with this form will also be delayed until (probably) March mid-February. While this form is not on the IRS list of forms that cannot be accepted on Wednesday, January 30th, both a post on Yahoo and Trish McIntire are reporting that the IRS announced this yesterday on a phone call with software vendors.
This will impact many taxpayers. While my tax practice will be less impacted than most, many tax professionals will have to delay submission to the IRS of many of their returns.
The blame here goes to Congress, not the IRS; had Congress acted responsibly and passed this legislation last Summer…of last Fall…or November, there likely would be no delays at all.
UPDATE: The IRS announced this afternoon that returns with Form 8863 will be accepted beginning in mid-February.
Tags: Education.Credits, Form.8863
[…] Fox, Form 8863 Added to Returns that the IRS Won’t Accept Just Yet. The form for tuition […]
This is stupid. My daughter went back to school to get a better job, and now has to wait for her tax return until sometime in March. This students are already strapped for money and now have to wait for their return. Yes, blame Congress but do something about it!
There just isn’t much that can be done. The IRS does want these returns to be filed as quickly as possible. Unfortunately, some IRS computers are almost as old as I am…and that’s the issue. Think punch cards.
Any private business would have set up a system where this can be done quickly. After all, these are not entirely new forms. To not be able to fix this to receive forms until possibly March does fall on the IRS.
You do need to realize that some of the IRS’s computer systems are old — really old. Think punch cards. The IRS is dependent on Congress for its budget, and the IRS’s budget as of late has not been increasing.
Sure, in an ideal world this wouldn’t happen…but we don’t live in that (yet).