Our Taxing Times

Head in the Sand!

I will be the first to admit that I am not a news junkie. Most days I skim the local paper and catch bits and pieces of the TV news. If it is deep tax season, I don't do that much. Given the chance, I will read a news magazine or make a point to watch MSNBC ot CNN. But the last few days have surprised me completely.
Thanks to the rebate, my phone is ringing off the hook. Mostly people wanting to know when they will be getting their money and how much. But I have been completely blown away by the number of people who are just hearing about the economic stimulus program from people who have gotten their money by direct deposit. When I question them, they admit they don't watch, listen or read the news and they seem to have ignored the IRS mailing.
I don't understand how anyone chooses to live in a news vacuum. Yes, the news can be depressing and we seem to be hearing same stories over and over. But, how can you make decisions about your life without knowing what is happening in the world around you? I don't understand that point of view.
And if you choose to bury your head in the sand and not know what is going, please don't get made at me when you miss something.

Kansas TAP

I received a postcard today about the Kansas TAP program. I had never heard about this before and wanted to share. Kansas TAP provides specialized phone for qualified individuals.

• Have a disability or impairment a specialized phone will help.
• Be a Kansas resident.
• Have a home phone.
• Have a household income of less then $55,000 a year

More information is availible on the Kansas TAP website. Or call 785-234-0200 (voice)  or 785-234-2007 (TTY)

Online Filing - the Dark Side

When I first started preparing tax returns, all returns were mailed into the IRS and states. When paid preparers were allowed to e-file, many taxpayers who could do their own returns started having them prepared to take advantage of the speed of e-filing and direct deposit. With the Free File Alliance or other online filing options, taxpayers can receive the benefits of e-file with out having to pay someone to do their return. I don't have a big problem with online filing as long as the people who use the service don't think I should provide free tax info when they have a problem.
I do have a big problem with "paid preparers" using Free File or other online service to file a client's tax return.

Here Comes The Money

The Economic Stimulus Rebates have been moved up a little. According to the IRS web site:

Economic stimulus payments will be issued according to the last two-digits of the main filer's Social Security number. People who use direct deposit also will be among the first to receive the payments starting April 28. The first cycle of paper checks will be mailed starting May 9 and continuing through May 16.

This does not match the charts issued over a month ago and still posted below this paragraph. The direct deposits are beginning a few days earlier while paper checks are beginning a week earlier.

Change of Address

If you have moved since you filed your 2007 tax return and expect to get a stimulus rebate, you need to file a Form 8822 (Change of Address) with the IRS. The form can be downloaded from the IRS web site or ordered from the form line (1-800-829-3676). If you have moved, the post office is not suppose to forward IRS checks. They are returned and held until the IRS gets a new address from you.
With the first checks to go out in 3 weeks, this is not something you want to procrastinate any longer. The second page of Form 8822 hold the instructions and mailing addresses based on your resident state. And do use all of the zip code. The +4 identifies your letter as a change of address and gets it to the right department more quickly.

Taxpayer Bill Of Rights

Congress is having another go at the licensing of tax preparers. This time they have included it  in HR 5716 - Taxpayer Bill Of Rights Act 2008. Bills including provisions for the licensing of preparers has been around for at least 5 years. They tend to die when the session of Congress ends. This one may suffer the same fate but it does have one provision I haven't seen for a while; a public awareness campaign.

Season's End

Generally, my tax season ends with a whimper. A few stragglers with easy returns; the usual suspects. The few remaining returns are picked up and then filed. The end is peaceful; not so this year. While the whole season has been crazy, the last two days have been a unbelievable.

One Week Left

With only a week left until the April 15th filing deadline, it is time for a reminder:

Your lack of planning is not my emergency!

Things I Don't Want to Hear or See.

Three weeks from tomorrow, Tax Season 2008 will be over. Which is a good thing since I am mentally and physically drained. This season has been off kilter from the start. Just as I was beginning to think I could see the light at the end of the tunnel, I got a rude awakening. Looking over my client list yesterday, it hit me how many clients are procrastinating this year. Especially some of my bigger clients. These are clients I know will be in. If they are later than usual, I have had a call assuring me I will see them. The bigger returns will just drop off their stuff and leave with a "Call me if you have a question." The rest will make an appointment soon. Then there are the clients who always wait to the last few weeks. While I will not see as many people as I did in early February, I will keep very, very, very busy. Don't forget I have 1st quarter payroll reports that have to be done too.
So here is my "Don't" list for the next three weeks. Avoiding these will keep me from turning into Evil Trish, it is not a pretty sight. They are in no particular order and some have been blogged in depth (they have an * after them. Sorry I don't have time to find the links.)

1. Don't tell me, "My other preparer let me do it." Why aren't they doing it now?
2. Don't ask, "Where did the money go?" when I tell you how much you made in 2007. Try something original.
3. Don't ever say, "This guy at work said..." Any time of the year, this or any variation will get you nowhere. If that guy really knows what he was talking about you would be paying him to do your taxes. *
4. Don't even try to shoot the messenger. This time of the year, I shoot back.
5. Don't expect an appointment on the 14th or 15th. These days are walk-in only. If you want to wait that long you can take your chances
6. Don't complain about the cost. You should have checked that before I finished the return.
7. Don't bring in a box/bag/suitcase of receipts that haven't been sorted or totaled. Can you say "extension"? How about "time charges"?
8. Don't call unprepared. If you have a question, have the supporting documents ready so you can answer my questions. Know when you can come in when you call for an appointment.
9. Don't keep calling back if the answering machine picks up. If the answering machine picks up, leave a message and I will call back. There is a reason I can't answer the phone and calling right back will not change that. No matter how many times you do it.
10. Don't ask for an extension if you can't pay the taxes. It doesn't solve the problem. File the return and pay as you can.*

Show Me the Money

I couldn't find this on the IRS web site but did receive the deposit/mailing dates for the Stimulus Payments (rebates) from a colleague I trust.
For returns processed by April 15, 2008.

Direct Deposit Payments
    If the last two digits of your SSN are: Your rebate should be sent to your bank by:

• 00 - 20  May 2
• 21 - 75  May 9
• 76 - 99  May 16

Paper Check Payments
    If the last two digits of your SSN are: Your rebate should be in the mail by:

• 00 - 09  May 16
• 10 - 18  May 23
• 19 - 25  May 30
• 26 - 38  June 6
• 39 - 51  June 13
• 52 - 63  June 20
• 64 - 75  June 27
• 76 - 87  July 4
• 88 - 99  July 11

Yes, someone who had the misfortune to have a balance due this year could wait as much as 2 more months for their money. I haven't seen anything about when taxpayers who file late will get their money. I assume there will be a catch up round for late filers but I haven't seen anything official.
I will post more details as I learn more.