Monday, April 15, 2013

It's Tax Day!

It’s finally here. April 15th has arrived and once it’s over we don’t have to worry about it for another year. We hope that everyone has either filed their tax returns already or has requested an extension. If not, you have only a few hours to get that done.

Other than having to pay your estimated tax bill at the time you file for extension, the benefits of filing for an extension strongly outweigh any negatives of filing. By filing the request for extension you give yourself six months additional time to have your taxes done in an unhurried and thorough manner and you avoid interest and penalties, which would be assessed otherwise. Contact a professional tax preparer immediately if you need to file an extension to try to get it in today.

In other tax related news, the Treasury Inspector General for Tax Administration released an Interim Results of the 2013 Filing Season report. Overall, there were fewer returns filed through March 9th, 2013 compared with the same period in 2012 probably because of the delays associated with the late passage of the American Taxpayer Relief Act of 2012. The need to make changes to forms and processes delayed the start of the tax season. The report also reveals that only 59 million returns were filed electronically in 2013 through March 9th, down from 64 million in 2012. Additionally, fewer refunds have been issued with only $155 billion reported in 2013 versus $174 billion in 2012. The average refund in 2013 also decreased to $2,894 from $2,944 in 2012.

The report stated that 220,800 returns have been identified so far showing fraudulent claims for $1.86 billion dollars in refunds and the IRS has avoided paying $1.79 billion of those refunds. We’ll let you know what the final numbers look like when they come out in a few weeks.

Here’s hoping this is an enjoyable day in spite of the IRS.

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