Late last week, the Internal Revenue Service (IRS) began accepting some electronically filed returns even though tax season doesn’t officially begin until Friday, January 31, 2014.
The news resulted in a flurry of emails and messages asking whether it means that IRS changed the opening date for tax season, whether there’s a “secret” to getting your return in early and if early acceptances means early refunds. Quick answers: no, not that I know of and no.
Here’s the skinny. The IRS begins updating its systems for acceptance of electronic returns in the fall before tax season opens. Historically, this happens around October. The 16-day government shutdown in October resulted not only in a backlog of correspondence and returns to process but also pushed off updates and other key components of the software acceptance. As a result, the IRS had to delay the opening of tax season to “allow adequate time to program and test tax processing systems following the 16-day federal government closure.”
Tax season was originally slated to open on January 21 (last Tuesday). Instead, the IRS announced that it will officially open for business for the purpose of processing returns on January 31 (this Friday). Just before the official opening date, the IRS accepts a certain number of returns as part of a “controlled testing” to make sure the system is ready to go. I think we all know what happens when you set a firm date and you haven’t tested it out first (Healthcare.gov, anyone?). Think of it like a soft opening for a restaurant.
As to the “secret” for getting your refund in first? If there is one, I don’t know it. I’ve checked with tax professionals and with tax prep software providers and they don’t seem to know either. I’m sure that IRS knows – but they’re not talking. I checked in with them on January 27 and they have not replied.
What the IRS has made clear is that early acceptance does not mean an early refund. All of the statements that I’ve seen have for returns which were submitted before January 31 and were accepted as part of the test pilot group include a message like this:
If you receive an acknowledgment during this timeframe, your return has been accepted by the IRS but your refund will not be processed early.
(This one happens to be from TaxACT.)
And according to IRS, refunds are not being processed at this time and you cannot check the status of your refund at this time.
(Anecdotally, I’ve heard folks claimed that they have been able to successfully check on availability for refunds but I cannot confirm the accuracy of those reports.)
The IRS expects to process about 150 million individual tax returns this year. Most of those seeking a refund will file in February. As in years past, although it’s frustrating to have to wait, my best advice is to take a cue from Axl Rose and Guns N’ Roses:
No, not all the booze and wearing of tight leather pants (most of us can’t pull that off successfully). The patience.
