As Congress closed this recent session, several tax breaks that could help American families were left unresolved. Each item on the agenda even has received majority support, and yet families will suffer from the lack of action on Congresses part. When finally passed, new tax benefits will allow citizens the option of deducting college tuition, state sales tax, and out-of-pocket expenses for classroom supplies paid by teachers.
Many taxpayers will miss the advantages of taking such tax benefits because the information will not be contained on the standard forms provided by the Internal Revenue Service. Due to the fact that the IRS had contractual deadlines with the vendors who print the forms, the forms will be lacking instructions. Taxpayers will instead have to seek to find the supplemental instructions to direct them on how to claim the tax breaks.
Another challenging point is that many taxpayers rely on manufactured software to prepare their returns. If the IRS makes changes in the law at the last minute, many programs will not accurately figure the tax payers additional credits.
In November, Congress will reconvene. Speculation is that congress will address and compile the extenders as a package deal. Either way, Congress must anticipate and respond to the new proposed law changes before January 31, 2006. The only question left- Will the estimated 19 million taxpayers who qualify for these benefits be able to take advantage of them?
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Law Offices of Darrin T. Mish, P.A.: Tax Attorney