Predictions for 2016 Tax Season Describe Continued Challenges

In a recent article for Forbes, tax law guru Kelly Phillips Erb reviewed the challenges of the 2015 tax season for so many taxpayers and placed predictions on what we can expect for 2016.  Following are some highlights:

• 2016 Prediction: With the applicability of the Patient Protection and Affordable Care Act (ACA), there will more incentives – not fewer – to file in 2016. Expect numbers to hold steady or increase.

• 2016 Prediction: With about 100 days left in 2015, many of the same tax extenders provisions are outstanding yet again. Two weeks ago, over 2,000 businesses sent a letter to members of Congress asking them to “act immediately” to either extend or make permanent those tax provisions. Still no movement. If Congress continues to drag its feet, expect to see those same challenges again. Specifically, TIGTA noted that, prior to tax season, “the IRS must identify the tax law and administrative changes affecting the upcoming filing season.” Once that happens, IRS must work to revise tax forms, instructions, and publications, as well as reprogram computer systems. Those resets (especially the reprogramming and testing) tend to happen in October. The longer that Congress pushes off addressing tax extenders, the chances of a delayed tax season increase. Additionally, two primary provisions of ACA, the Shared Responsibility Payment, and the Premium Tax Credit (PTC) will again be in play in 2016.

• 2016 Prediction: There has been no significant increase in IRS funding. Don’t expect more calls to be answered. And don’t expect wait times to decrease. Expect a push towards more online assistance and less personal contact.

Article published on Forbes.com September 21, 2015. To view the full article please visit: http://www.forbes.com/sites/kellyphillipserb/2015/09/21/2015-tax-season-miserable-for-many-taxpayers-will-it-get-better-in-2016

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