Just a friendly reminder regarding 2010 tax returns...

[PBS Poll-435]

If you have any special circumstances, wait until you receive all relevant documents before you file.

Since you can't even e-file until 1/14/2011, it makes sense to wait until you have it all.



This year if you pay a preparer they are in most circumstances you required to e-file anyway.


Don't file using your last pay stub, wait for the W-2 because you might miss out on retirement savings credits, or even miss taxable group life insurance.

[hobbit709]

1. All I have to do is wait for my 1099 for cashing in some of my IRA.

No W2, no anything else.

[PBS Poll-435]

2. That makes for an easy return. nt

[hedgehog]

3. Can I be the first to make my annual gripe about why I have to wait until

January 31 for my W-2? I mean, it's not like someone has to sit up nights and fill it out by hand. All the data is sitting on a computer somewhere. Load the forms and run the print program, already!

[aikoaiko]

4. I second, your gripe.

All in agreement, say aye.

[Vickers]

5. Ours come out the 22nd and I had the same question. n/t

[PBS Poll-435]

6. Cuz it is the law

It takes a lot of time to prepare YE returns (W3/1096/941) and the W2s themselves.


Plus the IRS isn't even accepting returns until half of the month is over.

[spooky3]

10. But this deadline has been the same for at least 35 years; technology makes it

much easier now for institutions to complete these forms. I think their point was that the deadline ought to reflect the time savings that technology has provided.

On the other hand, when the Congress enacts last minute changes (as it tends to do each year), it's hard for TurboTax and other companies to change all their software and send them out quickly.

So it's best if people can try to arrange their withholding so that it matches their expected tax bill as much as possible rather than wait for a big refund. Of course with all the changes, that's not easy to do, especially if you make a mistake and then owe more tax and a penalty.

[PBS Poll-435]

11. Paid Preparer penalties scare even accountants.

Every return to State/Federal/Local entities must match and sometimes it takes a good old pen and paper to ensure they are not going to be fined.

W4 reviews are done quite frequently now in the industry to ensure there was no error entering the data into whatever system they are using.

The IRS now fines employers/preparers for any information returns that have errors.

[spooky3]

18. That deals with a different matter--my prior post jumbled up several issues.

I think the key point made earlier by Hedgehog was that the amount of time that it takes an employer to prepare a W2 (as one example) is too long, and my reply should have been clearer that I agree because the necessary time to do this has been greatly lessened by technology in these intervening years. The employer should be able to distribute accurate W2s to its employees in far less time, enabling them to use TurboTax, etc., to complete returns earlier. The deadline for employers and other providers of 1099s, etc., should be updated to reflect this, e.g., to January 20. Then any paid preparer would be able to rely on documents that the taxpayer brings in on January 21 to the same extent that s/he now relies on documents presented on Feb. 1.

If the employer, financial institution, etc., makes errors on which others rely, of course amended returns can be filed, without penalty. But that is the same whether the deadline is January 31, January 20 or whatever is officially set.

[Statistical]

12. +5000. I usually do my taxes based on last paystub then wait for final W-2 for efiling to be sure.

No damn reason it takes 30 days to publish W-2.

Shit just put the damn thing online. I mean ADP has a portal and 50% of employers use ADP. Just make the data (which already exists) available.

[PBS Poll-435]

13. Nobody says that it is going to take until the end of January to get them out,

I was just suggesting (highly) that THIS year you wait.

And make sure that you don't miss interest from Savings Account/CD interest/Dividends etc.


Wait for the information returns! :)

[Statistical]

17. The sad thing is companies WILL take till the 30th to release W-2.

It happens every year. Every year despite productivity gains, improved computers systems, and other automation they still take 30 days.

[PBS Poll-435]

20. I don't think it is for any reason other than to ensure accuracy

You have to close December's books, Reconcile the bank, do EOY procedures, verify SSNs, then print and match to W3.

I can't tell you how many W2c forms I have seen from ADP and Ceridian.

I do it by hand first and then let the computer work its printy magic.

[REACTIVATED IN CT]

15. Do you want them fast or do you want them accurate ???

I don't print and mail W-2s until I finish reconciling the taxable wages for the year. I'd rather not issue W2c's to employees who have already filed their returns and now will have to file amended returns.

And what is the rush to file returns anyway ?? If people want that big refund quickly because they are using their tax withholdings as a savings account, they need a basic course in personal finance.

End of my annual gripes.

[Statistical]

16. The annoyance is that the 30 day rule has been in effect since the 1950s.

In 1950s with W-2 manually typed from ledgers companies were able to get them out in 30 days.
Today with a roughly 80000% increase in productivity companies still don't get them out in 30 days.

[tammywammy]

19. At my last job, my boss would hold onto the W2s until the end of the month

They usually came in from the payroll company they used a week or so early. She did the same with the 1099s. She held on to them like it was a check going out. I never understood that.

The company I work for now, the W2 is put online as soon as they're ready.

[taterguy]

7. You're supposed to wait until you have all your documents before you file?

Shit, when did they make that rule?

[PBS Poll-435]

8. Some like to get their "Spring Bonus" early

And they often make mistakes.


:)

[Name removed]

9. Deleted sub-thread

Sub-thread removed by moderator. Click here to review the message board rules.

[TheOther95Percent]

14. *Sigh*

I have to wait for my never-on-frickin'-time Coop board to send me a 1099. My real estate taxes and deductible mortgage interest are included in my monthly maintenance. For the first time in a long time, I got a nice fat refund check. Looking forward to another one this year.