Manager Interviewed by WKTV

Fiscal Cliff Deal Creating Problems for Tax Preparers

The fiscal cliff deal is done, but it’s now creating problems for tax preparers in the form of delays.

Certified Public Accountant Chris Lambe, a tax manager at D’Arcangelo & Co., LLP, said that problems arise because an agreement was reached last minute on December 31 in Washington.

Now, the Internal Revenue Service confirmed that it won’t be able to start processing any tax returns until January 30, about two weeks later than it usually begins to handle returns.

“Where I am seeing a lot of impact is middle class clients with small businesses,” said Lambe. “We are unable to do any planning for those the way we normally would because we had no idea what 2013 would bring. We didn’t know the tax code or law in place at that time.”

Also, the IRS is behind in different software program updates that are needed to process returns. That means many will receive their tax funds much later than in previous years.

The IRS has not yet indicated anything about extending the filing for income tax returns.

This year’s deadline is April 15.

Contact Chris Lambe for further questions, comments, or concerns by email at clambe@darcangelo-cny.com or by phone at 315-735-5216.

*Interview by Hilary Lane, WKTV

Christopher Lambe, CPA