Accountant Tax Tip

Electronic Filing Requirements

Starting on January 1, 2011, the IRS is requiring larger accountants, tax preparers, and CPAs to file current year tax returns electronically.  They are doing so in order to reduce the governments processing costs.  I always encourage clients to file tax returns electronically as it is generally more secure and quicker.  Some clients with balances due are hesitant to do so.  However, they can still file their returns electronically and make payments (possibly via EFTPS) just prior to the due date.

Direct Deposit Requirement

The federal government has recently announced that it is going to start requiring that all distributions from the federal government take place via direct deposit.  Those people that do not own a bank account will be issued a prepaid debit card to use.  I have not seen tax refunds directly mentioned in this new proposal, but assume that the IRS will move in this direction in the next several years.

North Carolina

Although I have not seen any proposals that the North Carolina Department of revenue will follow the IRS in their changes, they typically do.  I will keep abreast of these potential changes and other changes that may affect taxpayers in the future.

As always, if you have any any specific tax, accounting, or consulting questions, please do not hesitate to call me.