Even though the deadline for filing taxes is April 17 this year instead of April 15, the Internal Revenue Service wants you to file as early as you can.
According to IRS spokesman Dan Boone, that’s because the longer you wait, the more likely you are to make filing errors.
“We always find that people who do their taxes early make fewer errors because they’re not in a big rush like last-minute filers,” Boone said. “We’re approaching the end of January, which is the deadline for employers to have their W-2 form available for their employees. In most cases, the 1099 with bank interests and things like that should be available within the next week or so. One way to reduce the number of errors is to e-file. Paper returns have an error rate of about 20 percent, and e-file has an error rate of less than 1 percent.”
The good news for taxpayers is there’s no news as far as changes to the filing system or tax code this year.
“The tax return you used last year you might be able to use as a go-by for preparing this year’s return if your situation hasn’t changed in any way,” Boone said.
One new caveat, however, is the IRS’s increasing regulation of paid tax preparers.
Last year began the new regulation process, as the IRS assigned all paid preparers an identification number.
“If you’re hiring a paid preparer, make sure they sign the form not only on the paid preparer line, but make sure they include their PTIN identification number on the return,” Boone said. “The next phase of that regulation will begin this summer when we start competency testing for all those who registered with the IRS. For now, folks still need go through the same precautions when hiring a preparer. Check with the Better Business Bureau, make sure the credentials are good, make sure they are there all year long and not just for filing season, and things like that.”
Boone said people should also be aware of the three free tax help sites in Houston County.
Two of the sites are designated as VITA, which stands for Volunteer Income Tax Assistance, and they’re aimed at taxpayers whose household incomes are below $50,000 a year.
The third is an AARP Tax-Aide site, aimed at people 60 and older with no income limit.
The sites will prepare tax returns free of charge, but Boone also said residents can file online through www.irs.gov.
Boone said any taxpayer with an annual income of less than $49,078 should ask their tax preparer about the Earned Income Tax Credit to find out if he or she is eligible.
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