Fiscal cliff may delay tax returns

EAST PROVIDENCE, R.I. (WPRI) -- People may have to wait longer to file their federal tax returns, because it took so long for lawmakers to reach a deal on the fiscal cliff.

The tax filing season normally begins in January. However, the delay in coming up with a deal to avert the automatic tax increases means the IRS may not be ready in time. It now has to reformat all of its computers to accommodate the new tax rates.

In a statement to Eyewitness News Wednesday, the IRS said it was "assessing what impact [the fiscal cliff deal] will have on this year's filing season." The IRS says it will announce soon when taxpayers can start filing their returns.

Rhode Island Tax Administrator David Sullivan is optimistic the tax season will start on time.

"As long as the IRS can change their programs very quickly, we shouldn't see any delay," Sullivan said.

If the IRS has to delay the start of the federal tax filing season, Sullivan says Rhode Islanders can still file their state returns starting on Jan. 22.