IRS Offers Tips to Help Taxpayers with the New Tax Season Opening

tax-tips

The IRS will begin processing most individual income tax returns on Jan. 30 after updating forms and completing programming and testing of its processing systems. The IRS anticipated many of the tax law changes made by Congress under the American Taxpayer Relief Act (ATRA), but the final law requires some changes before the IRS can begin accepting tax returns.

The IRS will not process paper or electronic tax returns before the Jan. 30 opening date, so there is no advantage to filing on paper before then.

Using e-file is the best way to file an accurate tax return, and using e-file with direct deposit is the fastest way to get a refund.

Many major software providers are accepting tax returns in advance of the Jan. 30 processing date. These software providers will hold onto the returns and then electronically submit them after the IRS systems open. If you use commercial software, check with your provider for specific instructions about when they will accept your return. Software companies and tax professionals send returns to the IRS, but the timing of the refunds is determined by IRS processing, which starts Jan. 30.

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Holiday Giving Tax Tips from the IRS

Holiday charitable deductionsDecember is a great month for giving generously to charities, friends, and family; but all that giving can have a major impact on your tax return.

Here are five “Season of Giving” tips from the IRS covering everything from charitable donations to refund planning:

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Breast Pumps are now deductable!

Who knew??? The following was announced in the Feb. 28th, 2011 IRS bulletin:

The Internal Revenue Service has concluded that BREAST PUMPS and supplies that assist lactation are medical care under § 213(d) of the Internal Revenue Code because, like obstetric care, they are for the purpose of affecting a structure or function of the body of the lactating woman.

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