AMERICANS IN PROCESS OF SETTLING TAX ACCOUNTS WITH UNCLE SAM

The Internal Revenue Service lists eight "must" requirements for the use of Form 1040EZ.

One of the requirements is that a married couple filing jointly have no dependents. Another is that taxable income is less than $50,000.

Persons not meeting all requirements must use Form 1040 or Form 1040A.

It's that (tax) time of year again, when Americans start settling accounts with Uncle Sam.

Millions of Americans are assembling tax forms, looking at instruction books, and dumping out shoe boxes full of receipts and pay stubs.

Once the homework is finished, a tax payer can expected to work the next three or four hours preparing, copying, assembling and sending their forms to the IRS.

"We try to create forms and instructions that are accurate and can be easily understood," said Margaret Milner Richardson, Internal Revenue Service Commissioner. "For some people with income mostly from wages, filling in the forms is easy."

For others, who have businesses, pensions, stocks, rental income or other investments, it is more difficult and professional tax preparers may be sought.

Tax preparation is big business. No less than 35 tax preparers advertise their services in the immediate area each year.

With 18 days left until "tax deadline day," more than a million-and-a-half Missourians are still waiting to place their tax returns in the mail.

"Right now, we're running a little behind the norm for this time of year," said Nova L. Felton, public affairs officer for the Internal Revenue Service, St. Louis District office. "We have about a million returns in."

More than two and-a-half million persons are expected to file in Missouri.

"We're also running behind nationwide," added Felton. "For some reason, things are just running slower this year. Some people think they're facing some big changes. And, the bad weather we've had nationally could have something to do with it."

Jerry Stone, who operates Stone Accounting & Tax Service, 2520 Maria Louise in Cape Girardeau, agrees that the weather has been a factor.

"I think the weather is definitely a factor," said Stone. "That, and the fact that some people had their withholdings decreased last year, which has resulted in their owing money rather than receiving refunds.

"We're receiving a lot of calls now, setting up appointments over the next couple of weeks," said Stone.

Stone said that changes for 1993 returns were only minimal.

"The big changes will be coming for the 1994 tax year," he said. One of the changes for 1994 could be in the earned income credit. The 1993 rule states if your adjusted income is less than $23,050, and a child lived with you, you qualify for the earned credit.

"In 1994, it appears that this credit may be available in lower income brackets without a child."

One 1993 change, however has been to the liking of Stone's farmer accounts.

"We do a lot of taxes for farmers," said Stone. "Some depreciation allowances for farmers increased from $10,000 in 1992, to $17,000 in 1993.

"There are a lot of people out there who wait until the last minute," said Lee Kimmel, district manager of H&R Block tax service, 1471 N. Kingshighway. "But, things have been moving nice and steady for us. To date, it's been a great year. A lot of people are using the electronic system of filing."

With H & R Block's new "acu-file" service, clients can receive their refunds within three weeks, noted Kimmel.

"Our business is about the same as last year," said Debra Beussink Eudy of Beussink, Hey, Martin & Roe PC. "We haven't noticed any delays. Our business at this point is within 10 to 15 customers of last year. Everything is moving smoothly with few questions."

Other members of the firm include Jerry Roe, Tom Martin and Everett Hey.

Eudy added that more people are receiving fewer refunds, and some are paying for the first time, mostly due to a few tax changes which were retroactive to Jan. of 1993.

"There were some minor changes, but the witholding tables didn't change," she said.

IRS officials say many Missourians request extensions each year. In 1992, Missourians filed 47,000 extensions, and last year, more than 50,000 extensions were filed.

Taxpayers, however, should be reminded that even with the extensions, there are interest charges on any taxes paid after April 15.

"Extensions are available by filling Form 4868," said Felton. "By filing this form, a person will avoid the late filing penalty, however, this does not prevent interest on the late taxes owed."

To keep these charges as low as possible, said Felton, "we advise taxpayers to pay as much as they can as soon as they can."

The Form 4868 extension is for four months. If more time is needed, Form 2688 can provide an additional extension.

Tax preparers are geared up for a "flourish finish" for the filing period.

"We're ready," said Kimmel. "Last year we were busy the final two weeks, and were open until midnight April 15. We expect to be busy the next two weeks."

The IRS is also preparing for a busy finish.

IRS tax representatives will be in the lobby of the Cape Girardeau post office, 320 N. Frederick, from 5 to 8 p.m. on the final day of filing.

State and federal representatives will be available to answer last-minute tax questions. They will also have forms to request an extension of time to file 1991 returns.

"However, we will not prepare any tax returns at the Post Office," said Felton.

Taxpayers filing paper returns can expect an eight-to-10-week wait for refunds now, said Felton. "However, it's not too late to file federal tax returns electronically. In fact, you can file electronically through April 15 and still receive your refund within about three weeks," she said.

Felton stressed two factors for all income tax filers: "Check your math and sign your tax forms. An income tax form is not considered complete until it is signed," she said.

Americans will have to work about 126 days to pay this year's federal, state and local taxes, putting the annual "Tax Freedom Day" at May 6.

Tax Freedom Day is a symbolic date on the calendar when the average person finishes paying federal, state and local taxes if all earnings since Jan. 1 were turned over to the government for fulfilling tax requirements.

The annual day is computed by a Washington organization known as the Tax Foundation, which serves as a watchdog over such matters.

The May 6 date is three days later than the 1991, 1992 and 1993 dates - May 3.

The Tax Foundation says that state and federal tax increases enacted over the past three years will be felt more as the economy climbs out of recession, and when President Clinton's proposed tax increases are considered, "the end result is a rising tax tide that is expected to push Tax Freedom Day farther into the future."

By 1998, the foundation reports, Tax Freedom Day may be up to May 8.

Income taxes will require 40 to 41 days of work this year; Social Security and other payroll taxes will take 38 or 39 days. Each worker's share of corporate income taxes will take about 10 days to cover; property, sales and other business taxes account for the rest.

According to some previous tax reports, "Tax Freedom Day" was Feb. 9 in 1929; March 8 in 1940; April 17 in 1960; April 28 in 1970; and May 1 in 1980.