Lack of direction and delay from Congress on a $78 billion package tax bill could complicate filing season for millions of taxpayers, especially small business owners and low-income families.
Most of the provisions of the Tax Bill would apply retroactively to 2023 federal tax returns as well as 2024 and 2025 tax returns.
The current filing tax season 2024 is well underway, but the legislation is delayed. While the tax bill passed the US House of Representatives with an overpoweringly bipartisan margin of 357-70, it has been stalled in the Senate for days, and eventual passage of the tax bill remains far from certain.
Not all household taxpayers are affected if they’re already qualified to claim the child tax credit, and plenty of businesses are also unaffected. But many taxpayers are now steering a thin margin between Congress’s decision on the tax, the IRS filing deadline, and getting a timely tax refund.
Kathryn Keane, an enrolled agent and a National Tax Practice Institute said that it’s so negligent of Congress to delay the voting of the tax bill.
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A potential delayed refund because of the delay approves of the tax bill
If Congress waits until after that date, then it’s just going to be a nightmare for taxpayers. These are people that need this money. These are families living paycheck to paycheck.
As the tax bill was delayed, the IRS told taxpayers to file their returns when ready instead of waiting for Congress. IRS would help amend filed returns to adhere to the new law.
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