Wait!
Did somebody say taxes?
While some people may moan and
groan about the 2016 Tax Season that is just under way as of January 19th
(likely the tax professionals such as myself that can mainly look forward to
lots of late nights and communications with clients), most of the country
cannot wait to file their taxes in anticipation of tax refunds. Per IR-2016-05 posted on The Internal
Revenue Service (IRS) website last week, “The IRS expects more than 70 percent
of taxpayers to again receive tax refunds this year. Last year, the IRS issued
109 million refunds, with an average refund of $2,797.” For those individuals
that consider themselves savvy enough to accurately prepare their own taxes
without leaving money on the table in the form of missing deductions, the IRS
offers brand-name software through some of their commercial partners to about
100 million individuals and families with incomes of $62,000 or less to file their
taxes for free using their Free File
Program.
Although they may be anticipating tax refunds, many taxpayers
still dread this time of the year, especially if they have not been diligent
throughout the tax year keeping their receipts and other tax documents
organized. Such filers will likely be claiming itemized deductions in the form
of mortgage interest, real estate taxes, charitable deductions, casualty and
losses, and the biggest time consumers of all, business and rental income. The
associated tax forms for these types of items can get pretty complicated, so it
is best that people seek out assistance from a trusted tax advisor that is well-versed
in the tax laws and one that stays on top of the many changes that occur throughout
the year. This area alone can cost you several hundred dollars in missed
deductions if you are not careful. Also, when in doubt, seek a second opinion.
Most information can be found on the IRS website if you know where to look. I
would advise against doing generic online web searches that do not point you to
specific documentation on the IRS website or a specific section of the tax
code. Random information that you find on a blog or tax website will not hold
up in the U.S. Tax Court if called into question, so tread lightly.
The best news of all for those looking to wait until the
last possible day to pay any outstanding tax balances or that seek to turn over
every rock to find additional deductions, is that you have THREE additional
days before your tax return is due. That’s right! The filing deadline is April
18, 2016 because of the Emancipation Day holiday in Washington, D.C. Even
better news for taxpayers in Maine and Massachusetts is that Patriot’s Day
gives them an extra day to file, making their deadline April 19th.
Don’t you just love “the little gifts” like that? :-)
