2017 Tax Season Starts January 23: What Should You Consider

The Internal Revenue Service (IRS) has announced the dates of accepting e-filed tax returns for the year 2016. The announced dates are:

Compared to the usual norms, this year taxpayers will have almost 3 days more to file the tax returns. 15 April, which used to be the usual deadline falls on Saturday this year. The next Monday, 17 April is Emancipation Day, which pushes the deadline to 18 January.

Some Considerations for Tax Season 2017

With the tax season comes several hassles related to accounting and finances. Apart from arranging statements of expenses and income for the year, finding a professional help and choosing a right tax software are some of other concerns that the taxpayers have to take care of. Of the several issues, here are some of the important points that can help you must consider before preparing the tax returns.

1. Date Announced By IRS Is Actual E-filing Date

There are a number of tax software or tax professionals that will start accepting the tax returns from you days before 23 January 2017. Filing early has many benefits, but they will actually file them only the mentioned dates. So, there is no benefit of filing before IRS starts accepting the returns.
Tax software and professionals can help you prepare the tax quicker and with ease. These are many good reasons to go with them but if the filing is your only concern, it is better to wait for the fourth Monday of January.

2. ITIN Expiration

In case you have not used Individual Tax Identification Number (ITIN) for tax years 2013, 2014 or 2015, your ITIN will expire. Also, the ITIN featuring 78 or 79 (example: 9XX-78-XXXX or 9XX-79-XXXX) in the middle digits will expire. Make sure to renew your ITIN, so that you are able to file tax returns comfortably.

3. Refunds May Not Arrive on 15 February

Under the new tax law changes, IRS is supposed to hold the tax refunds until 15 February for tax returns, claiming EITC/ACTC. With that said, IRS also suggests that the refunds will take some time to reflect in bank accounts of the taxpayers. It is likely that the transaction will reflect on the bank account and debit cards in the week of February 27.

4. Beware of Scammers

IRS regularly takes steps to protect the taxpayers from scammers and states that tax season is the most active time period for scamming activities. By filing the taxes early and using the right technologies, such as tax software hosting, you can do your bit in keeping your tax returns safe.

Happy Tax Season 2017!