Getting Ready For The 2018 Tax Filing Season
IRS Giving Taxpayers To April 17, 2018 To File 2017 Individual Income Tax Returns.
The Internal Revenue Service announced that it can start accepting 2016 income tax returns on Monday, January 29, 2018. Returns filed before that date (by paper or electronically) will be held in suspense by the IRS. Since the IRS will begin processing tax returns on January 29th there is no advantage to filing tax returns on paper in early January instead of waiting for the IRS to begin accepting e-filed returns. Nevertheless, it makes sense to start organizing your information early and so when the IRS filing systems open on January 29th, you are ready to submit your tax return right away.
April 17thFiling Deadline
The filing deadline to submit 2017 tax returns is Tuesday, April 17, 2018, rather than the traditional April 15thdate. The reason why is that in 2018, April 15 falls on a Sunday, and this would usually move the filing deadline to the following Monday – April 16. However, Emancipation Day – a legal holiday in the District of Columbia – will be observed on that Monday, which pushes the nation’s filing deadline to Tuesday, April 17, 2018. Under the tax law, legal holidays in the District of Columbia affect the filing deadline across the nation. Be careful though with regards to the filing deadlines for 2017 State Individual Income Tax Returns as not all States may follow Federal law when it comes to the filing deadline and for those who do not, the filing deadline would be Monday, April 16, 2018.
Refunds in 2018
Choosing e-file and direct deposit for refunds remains the fastest way to file an accurate income tax return and receive a refund. The IRS still anticipates issuing at least 90%of tax refunds in less than 21 days, but there are some important factors to keep in mind for taxpayers that could cause delay. Under the Protecting Americans from Tax Hikes (PATH) Act which took into effect starting with the 2017 Tax Filing Season, the IRS is required to hold refunds for tax returns which include a claim of the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) until February 15, 2018. Also consider that it would still take several days for these refunds to be released and processed through financial institutions, and factoring in weekends and the President’s Day holiday, taxpayers claiming these credits may not have actual access to their refunds until the week of Feb. 27th.
Time Limits For Keeping Your Tax Records
Even though your 2017 income tax return is processed by the IRS and a refund is issued, that does not mean the IRS can later question or audit the tax return, In fact the Statute Of Limitations allows the IRS three years to go back and audit your tax return. That is why it’s a good idea to keep copies of your prior-year tax returns and supporting backup documentation for at least three years.
What Should You Do?
You know that at the Law Offices Of Jeffrey B. Kahn, P.C. we are always thinking of ways that our clients can save on taxes. If you are selected for an audit, stand up to the IRS by getting representation. Tax problems are usually a serious matter and must be handled appropriately so it’s important to that you’ve hired the best lawyer for your particular situation. The tax attorneys at the Law Offices Of Jeffrey B. Kahn, P.C. located in Orange County, San Jose and elsewhere in California are highly skilled in handling tax matters and can effectively represent at all levels with the IRS and State Tax Agencies including criminal tax investigations and attempted prosecutions, undisclosed foreign bank accounts and other foreign assets, and unreported foreign income.