Education Tax Credit Contributing to Delayed Returns
The Internal Revenue Service (IRS) recently announced that several problems with the filings for education tax credits may be delaying processing of many tax returns. According to the IRS, there have been many instances in which the Form 8863, Education Credits is not completed correctly. The problems stem from the following two conditions: failure to complete Line 25 Yes or No checkboxes on Form 8863 Part III and failure to complete Line 26 Yes or No checkboxes on Form 8863 Part III.
To speed up the process, the IRS is working to implement business rules that reject the incorrect returns. The agency is also requesting that software packages be modified to only accept returns with the correct completed boxes. For specific instructions on how to properly fill out Line 25 and Line 26 on the Form 8863, please visit Accounting Today.