About our income tax dilema

Congress put us taxpayers in an unholy mess and Congress could get us part-way out if it only would. Let's outline the problems and possible ways to ease the strains:<br /> <br /> First off, the IRS won't be accepting filed 2003 tax returns until Feb. 4, 2014 instead of right after the New Year for those who have the material ready. Jan. 31 is the deadline for such things as the 1099 series, etc. There're penalties for late filing of these. How, pray tell, can taxpayers and tax professionals such as me escape the penalties without congressional action?<br /> <br /> Here's one tactic you can use to ease the pain somewhat. It applies ONLY if you are reasonably certain you'll be getting a refund. Get it now by filing a new Form W-4 with your employer claiming more allowances.<br /> <br /> Now comes one of the real buggers. The deadline for filing without automatic extensions will remain April 15, 2004 because IRS says this is the law.<br /> <br /> Many taxpayers already have been unfairly taxed. Even though Congress was closed down, the October 15th deadline for all authorized extensions wasn't changed and many unjustly had to pay penalties and interest on top of their tax bills. I personally have four tax clients in that situation.<br /> <br /> I and a couple of my tax clients disagreed on an IRS position that some due taxes were underpaid. Our records showed in one instance the client actually was due a refund. In the other incident we had copies of certified bank records of canceled checks showing that the taxes indeed were paid.<br /> <br /> My tax program crashed earlier this year erasing all 2012 tax information. It took a professional 3 days to fix the computer, but without the 2012 information on about a dozen clients who had not yet filed. I have powers of attorney for most of my clients and wrote asking for a full transcript of the clients' records they had. It remains to be seen how long it takes to get the information. IRS says about a million returns are in the process of being accepted with a backlog of some 400,000 queries such as mine. No telling how long it'll take to get through that logjam. Meanwhile we taxpayers are being consistently fined time and time and time again.<br /> <br /> Is it going to be in 2014 before we actually get 2012 information to complete its filings. 2012 returns are filed in 2013, the 2013 returns in 2014. Taxpayers and professional preparers such as I can't even start on filing 2013 returns in 2014 until we finish the 2012 ones that had legitimate automatic extensions. Only then can we get a late start on 2013 returns with the deadlines looming.<br /> <br /> I readily concede the deadlines actually exist. Congress, not the IRS, sets most deadlines. Congress has time to do all sorts of things known to be futile efforts from the very beginning such as delay Obamacare until next year. Why, pray tell, cannot Congress change all these deadlines on a one-time basis to grant taxpayers the needed time to get their returns filed WITHOUT PENALTIES AND INTEREST.<br /> <br /> Taxpayers and voters should very loudly tell Congress to quit giving us the shaft and change those deadlines. Members of Congress aren't going their job if they go along with giving us the shaft. I know my own Congressman and two senators who I strongly support will be letting me and my clients down if he doesn't make the effort. Political opponents can make all sorts of hay describing how the incumbents let their constituents down making them pay penalties and interest beyond their control. This is one time we need to let our Congress members know in firm statements we expect them to give us relief from penalties and interest we had no control over.<br /> <br /> We professional tax preparers (and by extension our clients) are negatively affected. Every year we have to pay a $63 fee and have what are called "PTIN" numbers renewed. The IRS won't accept returns filed by that preparer until IRS gives the preparer notice his PTIN number has been renewed. I made the application and paid the fee but to this date, I haven't received any notice. I had a communication that maybe IRS can get the renewals out by late November or early December.<br /> <br /> I keep getting the feeling Obama is going to say the government can't afford to lose the money that unfairly shafting us and either ask Congress not to intervene or veto the bill if Congress does. This would be one time I'd be happy to be dead wrong.<br /> <br /> In the end I say "Congress, quit your bickering and get back to the task for which you were elected. Go back to taking care of the people's business or risk being replaced."<br />

http://accesswdun.com/article/2013/11/267780