Delays expected
IRS
If you have been following the headlines and the efforts to cut government spending (DOGE), you are aware that the IRS was also recently impacted. Although the IRS was initially put under a hiring freeze as part of an Executive Order, additional steps were taken recently to terminate approximately 6,000 IRS agents.
Reports vary on where these reductions will come from (field agents doing audits, service agents processing returns/refunds, etc.). However, the general consensus is that the timing of these IRS cuts is not ideal and could delay the processing of returns and refunds. Having said that, the IRS website indicates refunds can be expected on average in 21 days which is consistent with prior years.
Colorado
The good news is CO announced on Friday that "income tax processing is now open".
The bad news is
- This is about a week later than they anticipated,
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They are still not accepting business tax returns
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On personal returns, there is a large backlog. Per CDOR - " There will be a delay in acknowledgements during this period. CDOR will work to retrieve and process a limited number of tax returns before the official e-file opening after the controlled launch period. CDOR is working diligently to ensure that the system processes returns accurately and efficiently"
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