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Tax moves to make in March 2013

Despite sequestration, IRS plans to continue filing season as planned, start accepting more updated forms next week

Sequestration 2013 arrives today, but if things go as the Internal Revenue Service plans, most taxpayers shouldn't notice.

This filing season already has been crazy, delayed for weeks because of late passage of fiscal cliff tax laws that required the updating of IRS forms and its computer system.

Then came sequester, $85 billion in broad automatic spending cuts scheduled to take effect at 11:59 p.m. today, March 1. To meet the mandated reductions, which cover the last seven months of the 2013 fiscal year, most federal agencies, including the IRS, will have to make do for a while with fewer employees.

But IRS Acting Commissioner Steven Miller told all IRS employees via email yesterday that sequester necessitated furloughs won't happen until after tax-filing season. Postponing the temporary layoffs, Miller said, will ensure that IRS personnel will "continue to deliver for the nation's taxpayers."

That's good news for taxpayers who have filed and are awaiting return processing so they can get their refunds.

A fully-staffed tax agency also is good news for taxpayers who haven't been able to file yet because they need some of the forms that the IRS has been revising.

More forms, finally! Most of the most-popular tax forms were available when the agency started accepting returns on Jan. 30

Taxpayers filling out tax forms at the Internal Revenue office circa 1920. (via Wikimedia Commons)

In mid-February, the forms required to claim depreciation and education tax credits were ready.

And this weekend, the IRS says it will finalize updates to the remaining 29 forms it had to update for this filing season. They are:

  1. Form 3800, General Business Credit
  2. Form 4136, Credit for Federal Tax Paid on Fuels
  3. Form 5074 Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands
  4. Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations
  5. Form 5695, Residential Energy Credits
  6. Form 5735, American Samoa Economic Development Credit 
  7. Form 5884, Work Opportunity Credit
  8. Form 6478, Credit for Alcohol Used as Fuel
  9. Form 6765, Credit for Increasing Research Activities
  10. Form 8396, Mortgage Interest Credit
  11. Form 8582, Passive Activity Loss Limitations
  12. Form 8820, Orphan Drug Credit
  13. Form 8834, Qualified Plug-in Electric and Electric Vehicle Credit
  14. Form 8839, Qualified Adoption Expenses
  15. Form 8844, Empowerment Zone and Renewal Community Employment Credit
  16. Form 8845, Indian Employment Credit
  17. Form 8859, District of Columbia First-Time Homebuyer Credit
  18. Form 8864, Biodiesel and Renewable Diesel Fuels Credit
  19. Form 8874, New Markets Credits
  20. Form 8900, Qualified Railroad Track Maintenance Credit
  21. Form 8903, Domestic Production Activities Deduction
  22. Form 8908, Energy Efficient Home Credit
  23. Form 8909, Energy Efficient Appliance Credit
  24. Form 8910, Alternative Motor Vehicle Credit
  25. Form 8911, Alternative Fuel Vehicle Refueling Property Credit
  26. Form 8912, Credit to Holders of Tax Credit Bonds
  27. Form 8923, Mine Rescue Team Training Credit
  28. Form 8932, Credit for Employer Differential Wage Payments
  29. Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit 

If the testing of the forms goes well over the next couple of days, the IRS will start accepting these forms next week.

And it will have a full staff to handle them.

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This is ridiculous if you do not pay the taxes you owe the IRS, you will be subject to huge penalties, my friend set up payments for $100/mo on $3500.00 she ended up owing each and ever month was a $25.00 late fee and approx. a $26.00 interest tacked on so her payment toward the balance was actually about $49.0/mo. But when we are due a return of OUR OWN money that we actually worked for that they have all year we must wait to even get it back because they choose not to accept all forms..... I do not get to charge the IRS any interest fee's or late payments! Very screwed up system!! I wonder how much interest they get per year on all the income tax they have banked??


That million should be "Billion" with a B.

Paul Williams

You'd think the part of the government that's mainly responsible for bringing in revenue wouldn't be subject to sequestration...

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