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.