MADISON, Ala. (WHNT) — The Internal Revenue Service has officially announced that they will not begin accepting tax returns until January 30th, 2013. Late changes to tax law caused a delay to the start of the tax filing season, which was originally set to begin on January 22nd.
“Everybody will be affected,” says Twaleetar Dale, a tax preparer at Liberty Tax Services in Madison.
“No one can file their tax return until January 30, even then about 80% of us can file our taxes,” said Dale. “There are some other forms that won’t be ready until mid-February.”
Those other forms include Residential Energy Credits, Depreciation and Amortization, and the General Business Credit forms. Not to mention, the delay in processing means a delay in refunds.
“Those days do matter because with the Christmas holiday, bills still have to be paid,” said Dale. “Though the IRS gave themselves an extension, we’re not always able to give ourselves an extension with our bills.”
Tax preparation companies still encourage you to prepare your return as you normally would. This will help the IRS to process your return and deliver a refund as quickly as possible.
If you decide to have a tax service company prepare your return for you, there are a few things you may want to look out for.
“Wayne” is a WHNT News 19 viewer and was a former small business owner. He was given the wrong forms for his employees a few years ago by a tax preparation company and as a result, was fined $3500 for the mistake. Unfortunately for him, giving his employees 1099 forms instead of W-2 forms fell on him, not the tax service.
If you own a small business, you want to make sure you can trust the company that is going to file your return.
“You definitely need to look for the credibility of that tax service,” said Twaleetar Dale.
Dale says it’s extremely important to know the difference between what forms a contractor should receive, and what forms employees should receive. She thinks that might have been the issue with Wayne’s situation.
“Contractors, you pretty much have all the equipment yourself and you`re considered self-employed,” said Dale. “Employees, you buy all the equipment for them and you tell them what time to come and go you`re pretty much over them.”
Wayne says he just wants to make other small business owners aware that mistakes can happen, and it’s best that you educate yourself on what forms are right for your business.
“Go see your county’s tax collector and let them explain how this works and really listen to what they say, because if you don`t, it comes back and it will get you,” said Wayne.