Deadline looms for income tax filing

COLUMBUS - Procrastinating tax filers will be happy to know the last possible moment to file this year's income tax is later than usual because of Emancipation Day, a public holiday celebrated in Washington, D.C.

Because of the holiday, the IRS will be closed Monday, which makes Tuesday, April 17, the final day to file federal income taxes.

Tax filers in Columbus must drop off their tax returns at the post office no later than 6:45 p.m. Tuesday, April 17 in order to be postmarked in time for the April 17 deadline.

Emancipation Day is celebrated April 16 each year in Washington, D.C., On that day in 1862, President Abraham Lincoln signed the “Compensated Emancipation Act” releasing about 3,100 slaves held in the District of Columbia. The action took place nine months prior to the his “Emancipation Proclamation.”

The “Compensated Emancipation Act” is the only compensation offered by the federal government to freed slaves of that era. Mayor Anthony William's signed legislation making “Emancipation Day” an official public holiday in the District on Jan. 4, 2005.

Steve Long of Associated Tax Service said tax filers who have not yet begun preparing their taxes should just get the information together and do it.

“I really strongly discourage people from filing an extension,” Long said. “Most of the time when folks put off their tax preparation, it's because they think they owe money. They sometimes also think that if they owe they don't have to pay until they finally file, but this is not the case.”

Long said if the IRS doesn't receive proper payment or estimated payments along with an extension postmarked by April 17 that the individual will begin incurring interest and penalties starting April 18.

“The first thing I would tell anyone to do, who had not yet begun their taxes would be ‘Hurry!,'” said Jan Schematics CPA/PFS of Schmeits, JP, PC CPA. “The next thing I'd remind them of is to be sure to include their IRA deductions. It's not too late, and filers can add to their IRAs either ROTH or regular IRAs right up to the April 17 deadline,” he said.

Schmeits said filers also can add to their health savings accounts (HSAs) right up to the deadline.

“Anyone starting this late needs to be sure they include all the 1099s, 1098s and W2s that they have and make sure the amounts on all those documents agree with the final return,” Schmeits said. If any of these are missing it will likely lead to a notice from the IRS, which really amounts to a sort of mini-audit.”

Schmeits encourages his clients to claim all possible college tuition and college loan interest deductions and for those in business to decide soon whether they will claim any first year depreciation deductions on machinery or other equipment.

Asked about the use of the Free File program available through the IRS Web site at www.irs.gov, Long a paid tax preparer, said: “Most people, unless they are filing very simple returns, are going to miss something when they do it that way. They may miss some deductions they could have taken and miss out on a larger refund or worse they may miss something they should have reported and end up paying interest and penalties that could have been avoided.”

More tips about last minute tax filing and information about electronic filing (e-filing) can be found at the IRS website at: www.irs.gov.