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[Kerry Freeman EA]

IRS Kicks Off 2011 Tax Season with Deadline Extended to April 18;
Taxpayers Impacted by Recent Tax Breaks Can File Starting in Mid- to
Late February

IR-2011-1, Jan. 4, 2011

WASHINGTON — The Internal Revenue Service today opened the 2011 tax
filing season by announcing that taxpayers have until April 18 to file
their tax returns. The IRS reminded taxpayers impacted by recent tax
law changes that using e-file is the best way to ensure accurate tax
returns and get faster refunds.

Taxpayers will have until Monday, April 18 to file their 2010 tax
returns and pay any tax due because Emancipation Day, a holiday
observed in the District of Columbia, falls this year on Friday, April
15. By law, District of Columbia holidays impact tax deadlines in the
same way that federal holidays do; therefore, all taxpayers will have
three extra days to file this year. Taxpayers requesting an extension
will have until Oct. 17 to file their 2010 tax returns.

The IRS expects to receive more than 140 million individual tax
returns this year, with most of those being filed by the April 18
deadline.

The IRS also cautioned taxpayers with foreign accounts to properly
report income from these accounts and file the appropriate forms on
time to avoid stiff penalties.

“The IRS has made important strides at stopping tax avoidance using
offshore accounts,” said IRS Commissioner Doug Shulman. “We continue
to focus on offshore tax compliance and people with offshore accounts
need to pay taxes on income from those accounts.”

The IRS also reminded tax professionals preparing returns for a fee
that this is the first year that they must have a Preparer Tax
Identification Number (PTIN). Tax return preparers should register
immediately using the new PTIN sign-up system available through
www.IRS.gov/taxpros.

Who Must Wait to File

For most taxpayers, the 2011 tax filing season starts on schedule.
However, tax law changes enacted by Congress and signed by President
Obama in December mean some people need to wait until mid- to late
February to file their tax returns in order to give the IRS time to
reprogram its processing systems.

Some taxpayers – including those who itemize deductions on Form 1040
Schedule A – will need to wait to file. This includes taxpayers
impacted by any of three tax provisions that expired at the end of
2009 and were renewed by the Tax Relief, Unemployment Insurance
Reauthorization, and Job Creation Act Of 2010 enacted Dec. 17. Those
who need to wait to file include:

Taxpayers Claiming Itemized Deductions on Schedule A. Itemized
deductions include mortgage interest, charitable deductions, medical
and dental expenses as well as state and local taxes. In addition,
itemized deductions include the state and local general sales tax
deduction that was also extended and which primarily benefits people
living in areas without state and local income taxes. Because of late
Congressional action to enact tax law changes, anyone who itemizes and
files a Schedule A will need to wait to file until mid- to late
February.
Taxpayers Claiming the Higher Education Tuition and Fees Deduction.
This deduction for parents and students – covering up to $4,000 of
tuition and fees paid to a post-secondary institution – is claimed on
Form 8917. However, the IRS emphasized that there will be no delays
for millions of parents and students who claim other education
credits, including the American Opportunity Tax Credit extended last
month and the Lifetime Learning Credit.
Taxpayers Claiming the Educator Expense Deduction. This deduction is
for kindergarten through grade 12 educators with out-of-pocket
classroom expenses of up to $250. The educator expense deduction is
claimed on Form 1040, Line 23 and Form 1040A, Line 16.
In addition to extending those tax deductions for 2010, the Tax
Relief, Unemployment Insurance Reauthorization, and Job Creation Act
also extended those deductions for 2011 and a number of other tax
deductions and credits for 2011 and 2012 such as the American
Opportunity Tax Credit and the modified Child Tax Credit, which help
families pay for college and other child-related expenses. The Act
also provides various job creation and investment incentives including
100 percent expensing and a two-percent payroll tax reduction for
2011. Those changes have no effect on the 2011 filing season.

The IRS will announce a specific date in the near future when it can
start processing tax returns impacted by the recent tax law changes.
In the interim, taxpayers affected by these tax law changes can start
working on their tax returns, but they should not submit their returns
until IRS systems are ready to process the new tax law changes.
Additional information will be available at www.IRS.gov.

For taxpayers who must wait before filing, the delay affects both
paper filers and electronic filers. The IRS urges taxpayers to use e-
file instead of paper tax forms to minimize confusion over the recent
tax law changes and ensure accurate tax returns.

Except for those facing a delay, the IRS will begin accepting e-file
and Free File returns on Jan. 14. Additional details about e-file and
Free File will be announced later this month.

Many Ways to Get Assistance

The IRS is also continuing to focus on taxpayer service. Taxpayers
with questions should check the IRS website at www.IRS.gov, call our
toll-free number or visit a taxpayer assistance center.

This is also the first filing season that tax packages will not be
mailed to individuals or businesses. There are still many options for
taxpayers to get paper forms and instructions if they need them. In
recent years, fewer and fewer taxpayers received these mailings. Last
year, only 8 percent of individuals who filed tax returns received tax
packages in the mail. Taxpayers can still get any forms and
instructions they need online at www.IRS.gov, or they can visit local
IRS offices or participating libraries and post offices.

In addition, individuals making $49,000 or less can use the Volunteer
Income Tax Assistance program for free tax preparation and, in many
cases, free electronic filing. Individuals age 60 and older can take
advantage of free tax counseling and basic income tax preparation
through Tax Counseling for the Elderly.

IRS Free File provides options for free brand-name tax software or
online fillable forms plus free electronic filing. Everyone can use
Free File to prepare a federal tax return. Taxpayers who make $58,000
or less can choose from approximately 20 commercial software
providers. There’s no income limit for Free File Fillable Forms, the
electronic version of IRS paper forms, which also includes free e-
filing.

Check for a Refund

Once taxpayers file their federal return, they can track the status of
their refunds by using the “Where's My Refund?” tool, located on the
front page of www.IRS.gov. Taxpayers can generally get information
about their refunds 72 hours after the IRS acknowledges receipt of
their e-filed returns, or three to four weeks after mailing a paper
return.

Taxpayers need to provide the following information from their tax
returns: (1) Social Security Number or Individual Taxpayer
Identification Number, (2) filing status, and (3) the exact whole
dollar amount of your anticipated refund. If the U.S. Postal Service
returns the taxpayer’s refund to the IRS, the individual may be able
to use “Where’s My Refund?” to change the address the IRS has on file,
online.

Also, taxpayers may complete a Form 8822, Change of Address, and send
it to the address shown on the form. They may download Form 8822 from
www.IRS.gov or order it by calling 800-TAX-FORM. Generally, taxpayers
can file an online claim for a replacement check if more than 28 days
have passed since the IRS mailed their refund.





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