What you need to know – The Motley Fool

Taxpayers feel a lot of anxiety when the tax season approaches. On top of all tax reforms that will make major changes to the return for the 2018 tax year, the government's closure has raised concerns about whether the Internal Revenue Service will accept returns at all if lawmakers and the White House were & # 39; Unable to come to a decision on financing the tax authority's business.

Earlier this week, the IRS put rest on concerns about when the tax season would start. As of January 29, 2019, the tax service begins to accept 2018 tax returns. It also intends to pay refunds to taxpayers as planned. However, even if the official start date of the tax season is set, you must understand that there are reasons why you may not be able to send it quickly ̵[ads1]1; and the IRS cannot begin processing your return as soon as you may wish. It is important to balance your desire for a quick repayment by making sure your returns are right and not increasing any red flags leading to unnecessary delays.

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Another year in a row for a late tax season

Historically, the IRS has often managed to begin accepting tax returns for three weeks to January. But from time to time, certain complications arose that made it necessary for tax services to take more time to prepare. Last year, the IRS had to look at the only tax reforms adopted to ensure the impact that taxpayers could have on the 2017 return. It was sensible, given at the end of December, the decision of the reform work and the rapid breakthrough needed to incorporate them into the tax administration's operations.

This year, the IRS crawled to prepare for all the changes under the tax reform. It took a year-round effort in 2018 to take on tasks that ranged from creating a brand new universal 1040 form for all taxpayers to ensuring that all instructions and tax forms reflect new tax rules. With the IRS already short-staffed, the government simply disturbed what was already a high stress situation for federal tax officials. However, it was clearly important to stick to the end of January and the beginning of the tax season as early as it represents a significant victory for the IRS.

Here are some guides to treating the tax season as effectively as possible.

1. Don't Wait To Work With Your Tax Dealer

One thing to keep in mind is that you don't have to wait for get ready to submit your return. Taxes and tax companies already accept customers and start making tax returns, and the official January 28 start date will not stop them from doing everything they can at the end to get the registrations ready. Once on January 28, they then meet the completed return when IRS systems are able to accept them.

2. Look at Electronic Filing

As always, the IRS again used the opportunity to encourage taxpayers to electronically file. Making it minimizes errors and speeds up processing, resulting in faster repayments. If you hire a tax producer or use tax software, electronic filing is usually offered as part of the package.

The IRS announcement did not talk about how paper returns are processed this year, but last year the tax service said the returned paper would not start processing until mid-February. If the closure continues, the IRS will be under heavy strain and it may give electronic archiving an even greater advantage than the paper returns this year.

3. Do you get income earnings or additional tax points? Prepare to Wait for Refunds

The tax reform made some major changes, but it did not remove rules that require some taxpayers to wait for their refund. Those who receive social security contributions or the additional child tax credit are unable to pay refunds on these returns until mid-February.

By imposing additional delays, the IRS can check the numbers to ensure that the taxpayer claims the tires legitimately. Historically, the two credits have been frequent targets for those trying to abuse the system because they provide reimbursable amounts to return to taxpayers even if they have no other tax liability. Taxpayers can expect normal treatment of their returns – the IRS will only hold on to refunds until the statutory deadline expires.

4. File when you are ready

Just because the tax season starts on January 28 does not mean that you should archive so if you do not have all the information you need. Even the important W-2 forms that employers give to their employees are not required to expire on January 31. If you have bank or broker accounts, it may be well into February before you have all the tax forms you & # 39; You need and some forms of more complex tax problems take even longer to go to taxpayers.

The worst thing that can happen is to rush your return just to find out you've given something out. If you do, you need to submit a modified return, and it can add any kind of complications – as well as potential interest and penalties if you are not timely responding to the changed circumstances.

Get ready for the seasonal opener!

It is impressive that the tax authorities expect to start the tax season even with the potential difficulties associated with the government's closure. By understanding what is involved in getting back and treating you, you will be more likely to be among the first to get your hard earned repayment back in your hands.