No deal in Fiscal Cliff could affect tax returns - | WBTV Charlotte

No deal in Fiscal Cliff could affect tax returns


Technically,  we are already over the fiscal cliff.

Tax cuts have ended for most Americans, and budget cuts are in effect.

Quick action by lawmakers can reverse those measures, but some of the damage may already be done.

Tax offices are getting bombarded with phone calls right now.

There's a lot of uncertainty about how this will affect your tax filings this year.

Rashad Phillips, a tax accountant with Phillips Tax Group, says there are two things you need to know about how the fiscal cliff could affect you if there's no deal.

He say the IRS will have to cut jobs which could slow down the process of returns.

Also, because of the negotiations with the Fiscal Cliff there's some uncertainty, so some of the tax forms may not be ready and prepared on time.

Phillips says 100 million tax payers will not be able to the complete their tax return until mid-March.

Those will be the folks that have more complicated returns that include rental properties or stock sales. The rest of Americans will have to wait longer to get their tax returns.

"The average person who doesn't have a complicated return, they probably will be able to file their return, the IRS initially anticipated that it's going to be between 7-10 days to get your refund back, it will be longer than that," said Phillips.

It could take 2-3 weeks for tax returns to be processed.

Also, be careful about tax scams and people promising to get your refunds in 24-48 hours.

Those programs have ended so be aware of possible scams.

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