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...

The Republican-led House of Representatives is expected to pass a bill this week that would permanently extend the bonus depreciation tax break. But don’t expect President Obama to sign it.The Obama administration said...
Washington D.C., our nation's capital, is the healthiest city in the country, according to a new report from USA Today. But now it's going to cost politicos on the Hill and Gen-Xers in Foggy Bottom a little extra to...
Credit Suisse says pension assets at risk unless court delays sentencingJohn Letzing of the Wall Street Journal reported on Wednesday that Credit Suisse Group AG says its management of billions of dollars in assets for...

Upcoming CPE Webinars

Jul 16
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
Jul 17
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.