Recent comments by IRS Commissioner John Koskinen and National Taxpayer Advocate Nina Olson suggest that the 2015 tax filing season may be the most complicated for taxpayers in history. Both Koskinen and Olson agree that the upcoming tax season may present challenges that could make it as trying as the 1985 tax season.
Koskinen and Olson pointed to a number of factors that could cause headaches for both taxpayers and the IRS. First, budget cuts would continue to decrease the IRS’s ability to allocate resources to ease its burden and help confused taxpayers. Second, implementation of the ACA and FATCA has led to increased compliance demands with no resulting enforcement funding. Olson worries that the new withholding requirements under FATCA will prevent taxpayers from receiving refunds in a timely manner.
Lastly, there are over 50 tax extenders that Congress has yet to vote on. Among these are the Research and Development Tax Credit, the Section 179D Energy Efficient Commercial Buildings deduction, Work Opportunity Tax Credit and bonus depreciation. Failure to extend these provisions in a timely manner or changes to extended provisions could greatly delay the issuance of refunds.