Fiscal cliff delays tax filing date

TERRE HAUTE, Ind. (WTHI) - If you're busy gathering forms and old receipts for the upcoming tax season, you have a little more time than you think.

The IRS announced Tuesday that this year's tax season will open January 30th, two weeks later than normal.

For those that require certain forms, you may have to wait until late February or early March.

Larrison's Tax Service in Terre Haute says, that could mean turmoil for your personal finances.

"So anybody that you know, has put something off, their rent, utilities, or paying some kind of bill that they normally would have paid, expecting their refund to come, it's not coming," Larrison's Tax Service Enrolled Agent and Owner Michael Perkins said.

The IRS says it needs time to re-program systems, as a result of Congress' late decision-making in the fiscal cliff deal.

That means everything may be pushed back.

"Congress may have to actually extend the tax season from April 15th to May 15th because there's no way that they're going to have enough time to file," Perkins said.

However, Perkins says you shouldn't plan for that.

"Filers that wait until March or April, go ahead and come in and make an appointment, drop your stuff off. Do not count on April 15th being extended," he said.

Larrison's says when you add in that you're getting 2 percent less in your paycheck, the debt ceiling and federal spending cuts hitting in the following months, it's a setback.

"With the tax refunds being delayed and pay's declined, people aren't going to be very happy, this could really slow down the economy and you could have a mini recession this spring just because of all this."

Larrison's Tax Service does not expect your tax refund time to be affected. It should take no longer than 14 days.