IRS Kicks off Tax Season for Individual Returns Washington, D.C. (January 31, 2014) By Michael Cohn The Internal Revenue Service begins accepting individual tax returns starting today. The IRS postponed the beginning of tax season this year until January 31 due to the two-week federal government shutdown, which delayed the testing and implementation of some of their computer systems. The IRS is also starting off this tax season with a new commissioner, John Koskinen. Newly approved by Congress, he has been brought in to fix some of the problems that emerged last year, including with the agency’s Exempt Organizations unit, as well as contend with budget cuts that have been reducing taxpayer service. The IRS is encouraging taxpayers to use electronic filing, noting that last year, nearly 120 million taxpayers opted for IRS e-file. Since 1990, taxpayers have e-filed more than 1 billion Form 1040 series tax returns through e-file. In addition, the IRS has been getting the word out to taxpayers to take advantage of its Free File program, which it offers through tax software vendors that are members of its the Free File Alliance. Taxpayers were able to start using the Free File software early this tax season starting on January 17, but tax software vendors held it back until the 31st (see IRS Kicks Off Free File Before Tax Season Opens for Preparers). The IRS also is marking EITC Awareness Day with the start of tax season, letting taxpayers who are eligible know about the ability to claim the Earned Income Tax Credit. However, tax practitioners need to file a due dilgence checklist for clients who claim the EITC. The IRS also noted on its home page, for taxpayers concerned about the health insurance filing requirements, if they dont have a tax filing requirement, they dont need to file a 2013 federal tax return to establish future eligibility or to qualify for future financial assistance. But the deadline for signing up for health insurance is March 31, 2014.
Posted on: Fri, 31 Jan 2014 17:17:19 +0000