Like The Herald Business Journal on Facebook!
The Herald of Everett, Washington

The top local business stories in your email

Contact Us:

Josh O'Connor
Phone: 425-339-3007

Jody Knoblich
General Sales Manager
Phone: 425-339-3445
Fax: 425-339-3049

Jim Davis
Phone: 425-339-3097

Site address:
1800 41st Street, S-300,
Everett, WA 98203

Mailing address:
P.O. Box 930
Everett, WA 98206

HBJ RSS feeds

IRS chief warns of congressional inaction on taxes

SHARE: facebook Twitter icon Linkedin icon Google+ icon Email icon |  PRINTER-FRIENDLY  |  COMMENTS
By Jim Abrams
Associated Press
WASHINGTON -- IRS commissioner Douglas Shulman warned Thursday of a disastrous tax filing season next year if Congress puts off dealing with tax cuts that are set to expire at the end of the year or have already expired.
If Congress waits until the end of the year or acts retroactively on expired tax laws, "you could have a real disaster in the filing season where there is total confusion" about existing tax law, Shulman said at the National Press Club. He said one result could be that the tax agency, as it did last year, would have to delay the opening of filing for some taxpayers.
Shulman noted that the 2001 and 2003 George W. Bush tax cuts are set to expire at the end of this year, as is the payroll tax cut that was enacted last year and extended by President Barack Obama in February. The future of all those tax breaks is certain to be contentious as the fall elections near and as Congress approaches year-end votes on spending legislation.
Shulman said lawmakers also must decide on changes to the alternative minimum tax and determine what to do about several dozen already-expired tax breaks in such areas as research and development, ethanol, and schoolteachers who buy supplies for their classrooms.
"It is an issue we are tracking closely and we are quite concerned about and we are hopeful that these pieces of legislation will pass sooner rather than later," Shulman said.
Last year some taxpayers had to wait until mid-to-late February to file their returns because Congress made changes to the 2010 tax law in December and the IRS needed more time to reprogram its processing system.
Shulman also told reporters he planned to step down as commissioner when his term ends this autumn. He was nominated by Bush in late 2007.
Story tags » HouseSenateTaxes



Share your comments: Log in using your HeraldNet account or your Facebook, Twitter or Disqus profile. Comments that violate the rules are subject to removal. Please see our terms of use. Please note that you must verify your email address for your comments to appear.

You are logged in using your HeraldNet ID. Click here to update your profile. | Log out.

Our new comment system is not supported in IE 7. Please upgrade your browser here.

comments powered by Disqus

Market roundup