TIGTA warns IRS of delayed start to 2019 tax season
Washington, D.C. — The high volume of changes in the Tax Code, along with a shortened cycle and missed deadlines, are increasing the risk of a delayed start to the 2019 tax-filing season, according to a recent report from the Treasury Inspector General for Tax Administration. The IRS estimates that implementation of the Tax Cuts and Jobs Act will require creating or revising approximately 450 forms, publications and instructions, and modifying around 140 information technology systems. The IRS information technology organization’s normal deadline for business units requesting information technology products and services for the next filing season is Jan. 31. After passage of the TCJA, the IRS IT organization set up several interim deadlines to facilitate timely implementation of the law’s provisions. However, the business units missed the deadlines for submitting work request notifications and business requirements, increasing the risk of a delayed start to the 2019 filing season.
IRS ‘Future State’ is now just a 5-year plan
Washington, D.C. — In 2014, the IRS began talking up a new initiative for interacting with taxpayers online, calling it the “Future State” vision, allowing taxpayers to communicate with the IRS and deal with their taxes via the internet. The IRS is now phasing out the term, but incorporating some of the concepts in its five-year strategic plan, according to a new report by the Government Accountability Office. As originally conceptualized, the Future State vision would improve taxpayer service, enforcement and operations, while allowing the IRS to adapt to its shrinking budget and leverage its aging technology and better respond to the increasing complexity of the federal tax system and changing expectations of IRS services.
Taxpayers have now had close to a year to evaluate the new provisions of the Tax Cuts and Jobs Act. However, they have had much less time to look at proposed regulations interpreting those provisions and are still awaiting some proposed regulations and any final regulations.
There have been suggestions that the 2019 tax filing season might be delayed due to the inability of the Internal Revenue Service to process all of the changes in time. Even with a lot of questions remaining, taxpayers should be thinking about taking steps prior to year-end to take advantage of the new provisions in the law.