The IRS will begin accepting tax returns on Jan. 30 after updating forms and completing programming and testing of its processing systems.
BEACHWOOD, Ohio - A local financial planner said the fiscal cliff, or slope, will mean less money in your paycheck, layoffs and could lead to a recession.
Fiscal cliff is the term used for what will happen when a series of tax cuts expires and taxes increase. At the same time, mandatory spending cuts are to be implemented.
"Every consumer will have less money to spend as well as there could be, especially within the federal government, layoffs," certified financial planner Matt Olver said. "And then if we're not spending as an economy, there may be more layoffs at corporations."
Olver, who is the senior vice president and wealth advisor at Spero-Smith in Beachwood, said it will be more of a fiscal slope than a cliff.
"We're not going to see dramatic economic impact day one, but it's going to be gradually felt over time," he said.
It would mean a tax increase of $3,289 a year for a couple earning $75,000 with two children under 13 years old, according to the Tax Policy Center.
Talks are underway in Washington to try to avoid the fiscal cliff, however Olver predicts that even with an agreement there will be some impact for most Americans.
At the sledding hill in Brooklyn Thursday night, Clevelanders were hoping for the best.
"I'm hoping and praying," said Paul Hardwick of Middleburg Heights. "But whatever happens, you'll have to grin and bear it."
To find out how the possible tax increases could affect you, go to taxpolicycenter.org to run your own calculations.
Tucked into the "fiscal cliff" tax package approved by Congress are billions of dollars in tax breaks that should make the new year a lot happier for businesses of many stripes, including film producers, race track owners and the makers of electric motorcycles.
The "fiscal cliff" compromise on taxes leaves a big part of the nation's budget crisis still dangling.
The tax increases because of the fiscal cliff bill are not just for the rich, Social Security Payroll Tax increases by 2 percent.
Congress sent President Barack Obama legislation to avoid the economy-threatening "fiscal cliff" of middle-class tax increases and across-the-board spending cuts late Tuesday night.
Past its own New Year's deadline, a weary Congress sent President Barack Obama legislation to avoid a national "fiscal cliff" of middle class tax increases and spending cuts late Tuesday night.
Maneuvered into a political corner, House Republicans abandoned demands for changes in emergency legislation to prevent widespread tax increases and painful across-the-board spending cuts and cleared the way for a final, climactic New Year's night vote.
The Senate-approved compromise to avert the "fiscal cliff" ran headlong into opposition from the No. 2 House Republican and other GOP lawmakers Tuesday, raising questions about how Congress might be able to give final approval.
A look at why it's so hard for Republicans and Democrats to compromise on urgent matters of taxes and spending, and what happens if they fail.
Legislation to negate a fiscal cliff of across-the-board tax increases and sweeping spending cuts to the Pentagon and other government agencies is headed to the GOP-dominated House after bipartisan, middle-of-the-night approval in the Senate.