The government does not want you to file your tax returns! ....YET!

Posted by Robert Chambers 
on Jan 29, 2013
 
   The first day that anyone can file their 2012 tax return is Thursday, January 31st.  Paula A. Norby-Krueger the owner of Norby-Krueger Tax and Bookkeeping Services explained to members at Prante's during their regular meeting January 29th. how the fiscal cliff problems late in 2012 has resulted in the Internal Revenue Service to not be ready to receive tax returns.  She anticipated that IRS servers might even crash when people are first allowed to file and warned that if one filed their tax return electronically prior to Jan 31st it was "out in the cloud" somewhere and they might wish to check ("Where is My Refund") after February 1st that the return was in fact received by the IRS.Image
 

   Depending on the nature of the deductions then there is a sequence of dates after which people may file.  She has printed forms in her office at 325 Dakota Avenue that shows that sequence and though the IRS website is somewhat complex the form can also be found there.  She estimates that the average time after filing before a refund will come back will be 20 to 30 days.  The IRS is encouraging everyone to file electronically and paper returns will no longer be possible in two years.  She discussed some of the changes to IRS regulations that are effective now and that will become effective in 2014.  For most people the major one in 2014 will be that the IRS will deduct an imputed premium for anyone if they do not have health insurance.  This premium could be several thousand dollars.  The Health Act provisions also have large implications for businesses many of whom do not appear to be aware of what is coming.

   She also dealt with gifting provisions.  A Gift Tax Return must be filed (Form 709) however rarely will it cause a tax to be paid.  For 2012 one needs to gift an individual over 14,000 before there is a need for the form and two parents could each gift each child 14,000 without needing to file. Taxes are not incurred until the individual gift exceeds 5.12 million dollars.

   She then dealt with several questions from members about both the minimal distribution of Social Security at age seventy and one half and the alternative minimum tax rules.  Repeatedly she stated her aim to assist residents of the area with this complex subject and stated that simple questions or forms such as the one listing the various dates that people can file can be obtained at her office even if people are not Norby-Krueger clients.  When she opened the Wahpeton office she had two employees; she is now up to six due to the gratifying response of the community.