IRS Opens January 19 for filing 2015 personal tax returns

The IRS has announced that the tax extenders legislation will not slow the start of tax season.  The IRS will be open for business on January 19, as planned.  On this day personal tax returns, 1040 forms, can be electronically filed.  All 1040s will begin to be processed at that time so sending in a paper return before that date will not speed up the process.  Paper returns will be held until January 19 and processed at that time.

Tax season will end on Monday, April 18, 2016, because Washington, D.C. will celebrate Emancipation Day and when D.C. closes and the IRS takes a break, it slows down the end of tax season.

The IRS urges tax payers to make certain all tax filing forms have been received before filing a tax return, this included W-2s, 1099s and the new form 1095-A from the Marketplace for tax payers who plan to take the premium tax credit.  I will be writing a separate post on these forms which are new.

E-file and direct deposit are still the quickest and safest ways to file returns and claim refunds.  You can do this yourself, sometimes for free if certain qualifications are met, or for a small fee.  You can also use the services of a tax professional if you prefer.  If you have any questions, please post a question and I'll do my best to supply an answer.

The IRS is open for business and so am I

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The IRS will be open for business on Tuesday, January 20, 2015, to begin processing 2014 tax returns.  Below is some information copied directly from the IRS web site about filing and using electronic filing.  If you don't file electronically, I urge you to do so.  It's quick.  It's easy.  It's free (sometimes).

Contact me if you need me. 

IR-2015-03, Jan. 15, 2015

WASHINGTON — The Internal Revenue Service announced the on-time opening of the nation’s 2015 filing season and highlighted a growing array of online services, including features that help taxpayers understand how the Affordable Care Act will affect them at tax time, along with the availability of the Free File program.

Taxpayers have until Wednesday, April 15, 2015 to file their 2014 tax returns and pay any tax due. The IRS expects to receive about 150 million individual income tax returns this year. Like each of the past three years, more than four out of five returns are expected to be filed electronically.

The IRS Free File program, available at IRS.gov, will open Friday for taxpayers, and the IRS will begin accepting and processing all tax returns on Tuesday, Jan. 20.

This year’s return will include new questions to incorporate provisions of the Affordable Care Act (or ACA). The majority of taxpayers - more than three out of four – will simply need to check a box to verify they have health insurance coverage. For the minority of taxpayers who will have to do more, IRS.gov/aca features useful information and tips regarding the premium tax credit, the individual shared responsibility requirement and other tax features of the ACA.

“Our employees will be working hard again this season to help the nation’s taxpayers,” IRS Commissioner John Koskinen said. “We encourage people to use the tools and information available on IRS.gov, particularly given the long wait times we anticipate on our phone lines. As always, taxpayers can benefit by filing electronically.”

Koskinen announced that taxpayers can begin preparing their returns using the Free File system on Friday, Jan. 16. Available only at IRS.gov, Free File offers two filing options:

• Brand-name software, offered by IRS’ commercial partners to about 100 million individuals and families with incomes of $60,000 or less; or
• Online fillable forms, the electronic version of IRS paper forms available to taxpayers at all income levels and especially useful to people comfortable with filling out their own returns.

E-file, when combined with direct deposit, is the fastest way to get a refund. More than three out of four refund recipients now choose direct deposit. People who e-file make fewer mistakes, and it costs nothing for those who choose Free File.

In all, 14 software companies will be participating in this year’s Free File program. Additional details about the specific Free File offerings will be available tomorrow on the front page of IRS.gov when Free File becomes available.

Taxpayers who purchase their own software can also choose e-file, and most paid tax preparers are now required to file their clients’ returns electronically. In addition to Free File, commercial software companies also are currently available for taxpayer use.

The IRS will begin accepting and processing all returns — whether e-file, Free File or paper tax returns — on Jan. 20.

Like last year, the IRS expects to issue more than nine out of 10 refunds within 21 days. Again, the fastest way to get a refund is to e-file and choose direct deposit. It takes longer to process paper returns and in light of IRS budget cuts resulting in a smaller staff, it will likely take an additional week or more to process paper returns meaning that those refunds are expected to be issued in seven weeks or more.

Koskinen said, “If you haven’t already, you should consider filing electronically. It’s fast, accurate and the best way to get your refund quickly.”

Koskinen also strongly encouraged taxpayers to visit IRS.gov as a first stop for information ranging from the status of their refunds to basic tax information. He cautioned taxpayers that recent budget reductions will mean long wait times on the phone, routinely topping 30 minutes.

Information on IRS.gov and using tax software and e-file are among the options that can help people with questions about the individual shared responsibility requirement included in the Affordable Care Act, which is new to the Form 1040 this filing season.

When can you file certain forms?

The IRS can only act a quickly as Congress.  Since Congress worked literally until the 12th hour making changes to the tax structure, the IRS is still working on updating forms and instructions.  If you want to know which forms will be ready and at which dates, click on the link to the right on this blog page that says IRS General Information Home Page.  That link will take you directly to the IRS.  Then click on the orange/red section that says Forms and Pubs.  At the top of the next page is a link to all the forms still under programming.  Most will be ready by the first of March and most people don't use them.  So it's very possible you can file right now, if you haven't already done so.

As always, if there is something specific you want to know, leave a comment and let me know.