The IRS will start processing individual income tax returns for 2012 on Jan. 30.

More than 120 million households, or the vast majority of U.S. tax filers, will be able to file returns by the end of this month, the Internal Revenue Service said in a statement yesterday. The remainder, such as those who claim general business credits, will have to wait until late February or March because the IRS needs time to update forms.

The delay results from Congress passing last-minute changes to tax law on Jan. 1.

“We have worked hard to open tax season as soon as possible,” Steven Miller, the acting IRS commissioner, said in the statement. “This date ensures we have the time we need to update and test our processing systems.”

The IRS had planned to open electronic filing this year on Jan. 22.

“This is difficult news,” said Kathy Pickering, executive director of the Tax Institute at H&R Block Inc., the largest U.S. tax preparer. “No one will be getting a refund in January.”

Those who can afford it least will be among those most affected by the delay, Pickering said. That’s because many of the earliest filers are low-income, working families who claim the earned income tax credit and use their refunds to pay bills.

The average refund received by individuals in 2012 was about $2,700, according to the IRS.

‘Thin Month’

“This is a lifeline for these individuals and families,” Pickering said. “January is going to be a pretty thin month for a lot of people.”

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