This post continues Tax Extension Center’s daily series of The Top 100 Reasons to File a Tax Extension. In this series of posts, we’re doing our part to educate taxpayers how filing a tax extension can be a valuable tax season option for you or your business because it saves time, stress, and even money.
Here’s reason #97: the IRS deserves to wait as long as possible for putting you through this process every year!
I talk to a lot of people this time of year that are extremely frustrated about their tax filing situation. Most are mad because it’s close to the deadline and they haven’t done anything to file their taxes yet. And who do they blame? The IRS of course.
The IRS posted some interesting numbers via a press release that came out earlier today.
According to the IRS’ release, electronically filed tax returns are on track with last year and overall refunds are running nearly 10 percent higher so far in 2010.
The stats issued today cover the period through March 12. They show that while the overall number of tax returns filed this year is down slightly, the percentage of returns using e-file remains strong.
Check out these stats from the ‘Service:
The refund increase follows a number of federal tax incentives enacted last year as part of the American Recovery and Reinvestment Act, such as the homebuyer credit and the American Opportunity Credit.
“There are several new credits and deductions this year, so we encourage taxpayers to see if they qualify when they fill out their tax return,” said IRS Commissioner Doug Shulman. “To get their refunds quicker, the IRS reminds taxpayers that the fastest, easiest way is to e-file and use direct deposit.”
In a recent press release the IRS stressed a couple of points they want taxpayers to heed:
“The IRS encourages taxpayers to choose direct deposit when they file their returns because it puts an end to lost, stolen or undeliverable checks. Taxpayers can receive refunds directly into personal checking or savings accounts. Direct deposit is available for filers of both paper and electronic returns.
The IRS also encourages taxpayers to file their tax returns electronically because e-file eliminates the risk of lost paper returns. E-file also reduces errors on tax returns and speeds up refunds.”
In the same statement, the IRS went on to add, “E-file coupled with direct deposit is your best option; it’s easy, fast and safe.”
I’m in complete agreement. e-Filing is a no-brainer for so many reasons. And as I mentioned in my last post, more and more people are e-Filing these days.
Remember, e-Filing isn’t just for your 1040. You can e-File a tax extension as well.
The IRS reported come interested numbers today about the recently completed 2008 tax season:
A record 95 million individuals e-filed their federal income tax returns during 2009, up almost 6 percent from last year’s total of nearly 90 million. About two out of three taxpayers e-filed this year; out of the 141 million returns filed so far this year, over 67 percent were e-filed, compared to 59 percent last year.
The IRS added that more taxpayers choose to e-file their tax returns each year. While the total number of tax returns has increased 10 percent during the past decade, the number filed electronically has increased by 168 percent. Taxpayers who e-file from a home computer continue to be an increasingly significant segment of those who e-file.
With the October 15 deadline fast approaching, our support team has been busy answering one common question:
I don’t have time to finish my taxes by October 15, can I get an extension on my extension?
The answer is NO.
Unfortunately, the days of the second extension are over. The IRS only allows one 6-month extension to file form 1040.
Your only choice is to file your taxes. If your 1040 and money you owe the IRS is not filed on time, it may be subject to penalties and late fees.
If your problem is that you can’t possibly pay what you owe, I suggest you read the IRS’ recommendation on how to setup an Installment Agreement (otherwise known as a payment plan).
