Tax e-file season is officially open

The Internal Revenue Service is now open for 2010 tax business, ready to accept electronically filed income tax returns from most taxpayers.
 
The IRS touts e-file as the best way to file accurate tax returns and ensure speedy delivery of tax refunds. IRS Commissioner Doug Shulman speculates that e-file activity will increase this year, in part due to forced participation from many tax preparers. "With a new legislative e-file mandate for tax preparers, we anticipate that more tax return preparers will be using e-file this year, and we urge people who prepare their own taxes to give it a try. IRS e-file is now the norm, not the exception.”
 
While many tax returns are eligible for immediate e-filing, the IRS is still working to reprogram its computers to reflect new tax law changes enacted by Congress in December.
 
In particular, taxpayers who itemize their deductions by using Schedule A, who claim the higher education tuition and fees deduction, or who claim the educator expense deduction must wait a few more weeks to file their returns. Based on historical filing patterns, the IRS anticipates the delay impacts about 9 million taxpayers. The delay impacts both paper and electronic tax returns, most taxpayers can file immediately.
 
Although the IRS has not announced a specific mid-February start date for accepting the delayed tax returns, many people using e-file can get a head start. Many major software providers have announced they will accept these impacted returns immediately. Those software providers will hold onto the returns and then electronically submit them after the IRS systems open in mid-February for the delayed forms.
 
The IRS has indicated that, as in previous e-filing years, e-file returns will be processed and refunds issued much faster than paper returns. It will take less than two weeks to process an e-filed return, but as many as four to six weeks to process a paper return.

You may like these other stories...

Legislation coming out of Washington just might reduce homeowners' burden for disaster insurance. It's a topic very much on everyone's minds since the mudslide in Oso, Washington. The loss of human life was...
Divorce is hard, and the IRS isn't going to make it any easier. The IRS generally says "no" to tax deductions that might ease the pain of divorce. In certain circumstances, however, you might be able to salvage...
IRS chief: New rule on the way for tax-exempt groupsIRS Commissioner John Koskinen told the USA Today on Monday that the agency will likely rewrite a proposed rule regulating the political activities of nonprofit groups to...

Upcoming CPE Webinars

Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
Apr 30
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.