Local tax preparer advice as April 18 nears

The deadline to file personal income tax returns is less than a month away, and given Internal Revenue Service staffing troubles, Americans are being strongly encouraged to avoid a paper return and instead file online this year.

Such is the counsel of Lynette Halter of H&R Block in Jackson and Marble Hill.

"[A paper return] goes to a mailing center and gets put into a pile, and the return goes to the bottom and it takes a while to process," she said. "In prior years, a paper return would take 8 to 12 weeks to get through the system but now given IRS' issues, I'd say it'll take three to four months to turn around."

Halter, who is a licensed enrolled agent with the IRS, estimated 99% of the clients in her tax preparation practice now file electronically.

IRS has "enormous challenges," and taxpayers should prepare themselves for "a frustrating [tax] season," Treasury Department officials said Jan. 10.

IRS continues to deal with a pandemic-born backlog in addition to staff and funding shortages.

NBC News reported IRS started this tax season with 6 million unprocessed returns from the previous year -- approximately 5 million more than usual.

Deadline

Income tax returns are not due on the traditional April 15 date this year, and the reason is not because of COVID or the Christian observance of Good Friday.

April 16 is Emancipation Day in Washington, D.C., commemorating the date in 1862 when President Abraham Lincoln signed legislation freeing 3,000 slaves in the nation's capital.

Since April 16 is on Saturday, it will be observed in the capital the day before, on the 15th; therefore, tax returns this year are not due to be filed until the following Monday, April 18.

Any remaining tax due also must be paid on the same date unless a taxpayer requests an automatic six-month extension of time to file until mid-October.

Advice

Halter said if taxpayers determine they will owe money after returns are completed, there are two ways left in 2022 to reduce 2021's tax liability.

"The deductions that would lower your taxable income are contributions to a traditional individual retirement account [IRA] or to a health savings account. Those are the main two ways still available to reduce what a taxpayer owes on 2021 taxes," she said.