Taxpayers and tax preparers in Richland County are gearing up for the start of the 2014 tax season on Jan. 31, ten days later than the original opening date of Jan. 21.
The 2014 date is one day later than the 2013 filing season opening, which started on Jan. 30, 2013 as the result of tax law changes made by Congress on Jan. 1, 2013. The Jan. 31 start date this year allows the IRS adequate time to program and test its processing systems, an annual updating process that was delayed in October following the 16-day federal government closure.
“Essentially what’s happened is they’re saying they won’t accept e-file forms until the end of January,” said Helen Brown, a CPA for Riester, Lump & Burton CPAs, Inc. in Mansfield who offers tax planning and return preparation service. “They are accepting Free File forms from lower-income people, but tax preparers like us can’t (file), which is kind of odd but that’s how it goes.”
Approximately 90 percent of IRS operations were closed during the shutdown, putting the IRS nearly three weeks behind its timetable to start the 2014 tax filing season. Regardless of the starting date, the April 15 tax deadline remains the same.
While the IRS may be rushing at the federal level to start the tax season, at the local level tax preparers in Richland County have not noticed any significant changes due to the shutdown.
“I have not noticed any different in this tax season compared to prior years at this point,” said Shirley McAuley, a public accountant in Bellville who specializes in small business and personal income tax planning and preparation.
“It affected us more at the time it was shut down because there were certain things you could not do, as in anything to do with the government,” added Brown. “They make it sound like they’re scrambling, but it’s not near as bad as last year.”
This year, the IRS is encouraging taxpayers to use e-file for Free File as the fastest way to receive refunds, a process tax preparers have been required to use for at least the past three years according to Brown. Many software companies are expected to begin accepting tax returns in January and holding those returns until the IRS systems open on Jan. 31.
Richland County residents had mixed opinions on the encouragement from the IRS to e-file. Some residents, like Jennifer Garrison of Ashland, have always used e-file.
“It’s much more convenient, and you get your refund back faster,” she said.
Mary Caudill of Willard has also always completed her taxes herself using e-file.
“It’s cheaper because it’s free, and my taxes are not very complicated,” she said.
Other residents, like Ray Williams of Ontario, have always used tax preparers in the filing process.
“I’m not very good with computers, I’m afraid to mess it up,” said Williams.
Having no computer to e-file from, Theresa Brock of Shelby said she always sends her forms to an old friend to complete for her. But Mike and Patti Mutchler of Ashland County said they use an accountant because they own their own business, A-1 Septic Tank Cleaning, which services both Richland and Ashland counties. Jim Ensminger of Lexington said he uses an accountant because he just doesn’t trust the e-filing system.
The difficulty of the online process depends on the interview questions asked and the complexity of the return, according to McAuley.
“Your return will be just as good as the information that is put in,” she said. “If the proper questions are not asked and information received then they could leave money lying on the table that they are entitled to.”
With the direct deposit option, the IRS notes taxpayers will receive their tax refunds much faster by using e-file or Free File.
“The benefit to doing it online is it gets there quicker; there’s less chance of error on the IRS side because they’re not keying in the information,” said Brown. “You get your refund quicker, and if you use direct deposit you get it much quicker.”
“The benefit to doing it online is it gets there quicker; there’s less chance of error on the IRS side because they’re not keying in the information,” said Helen Brown. “You get your refund quicker, and if you use direct deposit you get it much quicker.”
