Congress’s Delay on Tax Extenders Could Affect Next Year’s Filing Season
In a letter to U.S. Senate Finance Committee Chairman Ron Wyden (D-Ore.), Internal Revenue Service (IRS) Commissioner John Koskinen warned that Congress’s continued inability to extend the more than 50 tax provisions that expired at the end of 2013 (the so-called “tax extenders”) could delay or disrupt the 2015 tax filing season. To prevent that outcome, Koskinen said Congress must act on a tax extenders bill no later than the end of November. (Koskinen did not weigh in on the whether Congress should renew these provisions – he simply said Congress’s failure to act one way or the other would disrupt the IRS’s ability to plan for and begin the season.) Koskinen argued, “Continued uncertainty would impose even more stress not only on the IRS, but also on the entire tax community, including tax professionals, software providers, and tax volunteers, who are all critical to the successful operation of our nation’s tax system.” MSCI, of course, also believes the continued delay has increased uncertainty for all U.S. businesses and individuals that take advantage of these provisions. As such, MSCI will continue to press for quick action on a tax extenders bill during the November 2014 lame duck session of Congress.