VOLUME 01 – WINTER 2014

tax-season

tax-seasonAnnouncing the official beginning of the 2014 Tax Season

The wait is over for taxpayers and tax professionals alike as tax seasons begins today. Americans waiting for their tax refunds can breathe a sigh of relief.

The delay in the beginning of the 2014 tax season caused by the US government shutdown in 2013 was not as bad as initially anticipated. There was some speculation that the tax season would not begin until early in February but the IRS confirmed in December that the official date would be January 31st. This is only one day later than 2013 tax season which began on January 30th.

Although the official date this year is January 31st many tax professionals have been diligently preparing their clients taxes in anticipation of this date. Professional tax software allows them to fully prepare their clients’ returns ahead of time and then submit them electronically when tax season begins. The IRS has also advised taxpayers that there is no advantage to submitting paper returns and recommends filing electronically.

The deadline for filing taxes is set by statute and will remain April 15th, however taxpayers do have the option to file an extension for up to six months. The IRS has also stepped up its efforts to fight identity theft this tax season and has provided extensive resources to help taxpayers on their website. It is important that all individuals take the threat of identity theft seriously whether they have been victims or not.

Sigma Tax Proprovides a full range of essential services for tax pros.This includes industry leading software solutions as well as technical support, tax preparation support and client retention strategies. The Audit Assistance program is offered to new and existing clients and can provide them with peace of mind in the event their clients are audited by the IRS.


 

NEWS AND TIPS

60gowithAproTaxpayers still prefer to hire a tax professional than file their own taxes

New data from the IRS shows that around 60% of tax returns are filed by a tax professional. Consumers are still unsure of navigating complex IRS guidelines on their own.

While many tax professionals are concerned about software that allows individuals to file their own taxes, data from the IRS shows the majority of Americans prefer to hire a professional. This even applies to more tech savvy high wage earners as they often have to file more complex tax returns. Moreover as IRS guidelines change each year many taxpayers are concerned there may be new deductions they are missing.

The IRS has taken steps to make it easier for individuals to file their own tax returns with Free File. This allows taxpayers to file their taxes for free if they make less than $58,000 per year. However it is still the minority of Americans who take advantage of this service. This may be in large part due to tax credits that are available for low income families, taxpayers want to be sure they are getting the maximum refund available to them.

It is also the fear of IRS audits that drives many people towards tax professionals when it comes time to file their tax returns. Taxpayers are aware of the onerous requirements of an IRS audit and would rather get professional advice than risk making a mistake that might trigger an audit. This combination of factors means that for the foreseeable future the majority of Americans will continue to rely on professionals rather than using their home computer when tax time comes around.

Sigma Tax Pro provides a full range of essential services for tax professionals. This includes industry leading software solutions as well as technical support, tax preparation support and client retention strategies. The Audit Assistance program is offered to new and existing clients  andcan provide them with peace of mind in the event their clients are audited by the IRS.