In regard to the sales tax instuctions, as JAH mentioned, Congress did not act until mid-December after both the forms and the instructions were printed. Again, one thing the IRS does well, in spite of Congress, is to implement acts of Congress which probably isn't evident to the average taxpayer attempting to complete the often confusing forms and instructions.

There is no question that the quickest way to receive a refund is to file electronically and to request a direct deposit. The system is quite efficient. For those who request a loan against their refund, if they file in the morning they will probably have a check in hand by late afternoon.

You would be amazed how many folks wait two months to file and then pay extra to get their refund the next day.

I wish I had thought to put up a second poll asking those who file electronically if they are getting a refund. I would think e-filing would be more desirable, as jah suggests, for those getting a refund.

This year, congress passed a bunch of tax-related stuff - eg out sales tax deduction - late in the year, so they recommended that no one file until February. I never heard anything about system problems,

That's what it was. A different kind of system problem. I understand these last minute changes RE sales tax deductions require the sales tax deduction to actually be put on line item for State and Local Income Taxes since they did not plan for a State and Local Sales Tax deduction.

I generally find it quite amusing to review some of the steps that are required to complete the US income tax reporting forms. Of course, I don't do it for a living, I don't completely depend on myself to do the forms, I depend on a pro. Although, I try to review everything and have a pretty good understanding of our completed tax forms before submitting.

Printed 1040 Tax Instructions:
What's new for 2006 - You can no longer deduct state and local general sale taxes instead of state and local income taxes.

Then, for those in the know, or those who go to the trouble to follow-up on the caution message and look up What's New over and above What was new, you must go to irs.gov, then More forms and publication, then What's Hot (not just new), then from the Hot List of 10 items select the Individuals item, then from the Tax Law Changes for Individuals page under the Topics - Tax year 2006 list of 28 items select the 26th item, State and Local General Sales Tax link,

IRS.GOV information on the Internet
What's Hot - Tax Law Changes for Individuals

The Tax Relief and Health Care Act of 2006 extended the election to deduct state and local general sales taxes through 2007. The act was enacted after Schedule A (Form 1040), Itemized Deductions, and its instructions were printed. Because we were not able to include the instructions for figuring the deduction in the Schedule A instructions, we developed Publication 600 to help you figure the deduction for 2006.

From there, go to Publication 600, which gives you the new, hot information on sales tax deductions. But, because the 1040 Schedule A was printed before the law was passed, the actual deduction amount must be put on Schedule A, line 5 (State and Local Income Taxes) where you must note "ST "on the dotted line to the left of the entry space".

That is just silly!

Well, technically efiling doesn't begin until a preset date that's usually January 15. This year, congress passed a bunch of tax-related stuff - eg out sales tax deduction - late in the year, so they recommended that no one file until February. I never heard anything about system problems, but I could've missed it, since we didn't efile our first client until February.

you can electronically file in January but the payment is not due until April 17;

Actually, I heard that this year the IRS was having some problems and told professional filers (accountants, etc.) to not file anything in January. Something about their systems weren't ready and they wouldn't be able to do anything with them even if they were filed, in January. Did you hear this jah?

Yeah, but if you're going to mail them the 1040-V, why not just mail the whole thing?

True, but a taxpayer is not required to authorize an electronic withdrawal when they file an electronic return; if they choose, they can mail a check with a voucher, Form 1040-V.

Submitted by jah on Sat, 2007/04/14 - 12:05pm.
Right. The payment is due on the same date, but if you write a check, it will take longer for the payment to be processed, and you will get to hold onto your money longer. That's the only logic.

Why would it take a check mailed with a paper return any longer to clear than a check mailed with a 1040V? Anyone thinking they have float time to cover a check sent to the IRS had better cover it within a day or two. If there is anything the IRS does well, it's process checks.

Oh, and you tend to get your refund a lot quicker if you efile, too, although the turnaround varies.

Right. The payment is due on the same date, but if you write a check, it will take longer for the payment to be processed, and you will get to hold onto your money longer. That's the only logic.

Not to agree or disagree with your company's policy JAH, that's your company's policy. However for those who may be reading your comment, it really does make any difference when the return is filed electronically, the payment is due this year on April 17. In other words, you can electronically file in January but the payment is not due until April 17; you can also request an extension and file in October, the payment is still due on April 17.

Filing a paper return may extend the time it takes for the IRS to process the return, but it does extend the date the payment is due. Paper returns are processed by an IRS employee which means there is the possiblity of human error and there is also the possibility of quirky returns being flagged for further review.

As a general rule, our company files returns electronically when they'll get a refund and manually when they have to pay.

So, yes and no.

(and I owe this year, so for this year, no.)