Tax Day Delay: Consider applying for an extension if in a hurry

WASHINGTON – Millions of Americans wait until the last minute arrive pay their taxes And this year is no exception.

Monday is Tax Day — federal deadlines for filing and paying taxes individually — and the IRS gets tens of millions of last-minute filings electronically and through paper forms.

As of April 8, the IRS has received more than 103 million returns for this tax season, and it has grant over 63 million cashbacks worth more than $204 billion.

For comparison, last year more 169 million people completed the income tax return at the end of the year. That probably leaves nearly 40 percent of this year’s taxpayers unresolved, with many scrambling to file their documents by Monday.

Nina Tross at the National Association of Tax Professionals says if people haven’t filed their taxes now, “they’d better file for an extension.”

However, she adds, “People don’t realize that filing for an extension won’t work” as long as they’ve filed their income taxes by Tax Day.

“The extension is merely filing a tax return at a later date,” says Tross. “If you rush back to get it out the door and you have to modify it later, you’re more likely to be scrutinized by the IRS.”

“You should be expanding rather than modifying,” she says.

The IRS is facing the biggest backlog of jobs in history this year. At the end of the 2021 application season, the agency 35.3 million profit pending. One reason is that every paper document that goes into the IRS is handling by a human, according to the IRS.

And some forms are reviewed and treated by IRS staff as if they were filed on paper even if they are submitted electronically.

This year will be one of the biggest challenges for the company, with a record low headcount. The IRS workforce was about the same size in 1970, although the U.S. population has grown exponentially and tax laws have become increasingly complex.

The agency announced plans in March to hire at least 10,000 more workers.

Lisa Greene-Lewis, CPA and spokesperson for TurboTax, says that if people still intend to file their taxes before Tax Day, “I will put all your documents together in one place so you don’t miss anything. what, like W2 and 1099.”

Important documents like “ Letter 6419 ” Letter 6475 “For stimulus payments should also be made.

“You want to report the exact amount you receive so you don’t have to adjust your refund,” says Greene-Lewis, who has been taxing for more than 20 years.

The IRS has released some information and Useful Links for last-minute filers – emphasizing that “taxpayers should take care to file a complete and accurate tax return. If the return contains an error or is incomplete, it may require further review”.

Keith Kahn of the Delaware CPA Association says he encourages people to file their returns electronically.

When asked if the CPA would accept clients on Tax Day, Kahn said people are often turned away. But for those who can’t make an appointment, “make sure you have everything you can offer your CPA – there’s not much time to strategize or ask questions.”

at Blogtuan.info – Source: nbcnews.com – Read the original article here