Struggling To Get Your Taxes Done? Opt For An Extension Over Rushing

Monday is Tax Day, the federal deadline for filing and paying individual taxes, and the IRS expects to receive millions of last-minute returns in electronic and paper form.

As of April 8, the IRS has received more than 103 million tax returns this tax season and returned more than $63 million worth more than $204 billion.

In comparison, at the end of last year, more than 169 million people paid taxes. That's probably about 40 percent of taxpayers still missing this year, with many shaking their heads to turn in their paperwork on Monday.

Nina Tross, executive director of the National Society of Tax Professionals, says it's "better to extend" if people haven't paid their taxes.

However, he adds that if people don't pay income tax before tax day, "people don't understand that filing for an extension has no effect."

"The extension only makes a statement later," Tross said. "If you rush to get it out and then edit it, you're more than likely going to get a double look at the IRS."

"You're better at growing than changing," he says.

The IRS faced the biggest setback in its history this year. By the end of the 2021 documentation season, the agency expects a return of 35.3 million. One reason is that every paper document that is included in the IRS is processed by one person according to the IRS.

Another thing is that the organization has implemented extensive assistance programs in recent years, such as the Continuing Child Tax Loans, for the coronavirus epidemic.

Some forms are reviewed by IRS staff and, although submitted electronically, they are considered paper applications.

This will be the busiest year for the agency, which will have a record number of employees. Despite the rapid growth of the US population and the increasing complexity of tax laws, the IRS workforce remains the same as it was in the 1970s.

Lisa Green-Lewis, spokeswoman for CPA and Turbotax, says if people plan to pay taxes before tax day, "I'll collect all of your paperwork so that nothing like the W-2 and 1099 is forgotten."

Child tax loan payment contours must be accessible to current year taxpayers and "Letter 6475" must be at your fingertips for incentive payments.

Green-Lewis, who has been a tax officer for more than 20 years, says, "You want to disclose the amount you receive so you don't have to change your income."

Although the agency announced in March that it planned to hire at least 10,000 additional workers to assist with the repatriation process, administration officials said the IRS was in dire need of additional funding as its budget increased. It has declined over the last decade.

In a call to reporters, a senior Treasury official, who did not want to be named, said the other IRS could be dealt with at a higher level of funding because the IRS 'IRS' budget had actually been reduced by more than 15%.

The IRS says, "Taxpayers should take care to submit complete and accurate tax returns. If the return is incorrect or incomplete, it may need to be reviewed," adding useful information and links to last-minute applicants.

Kate Kane, director/president of the CPA Delaware Society, said she encouraged everyone to submit an electronic statement.

When asked if CPAs would accept customers on Tax Day, Kane said that usually people refuse. But for those who can get the promise, "Make sure you have everything you can for your CPA - not too much time strategizing or asking questions."

Are you filing a tax return for the first time?