The 2008 filing season is shaping up to be a very costly tax season for all taxpayers.
All you folks expecting a refund on your 2007 return already know that you’re going to have to wait a little longer for your tax cash, thanks to Congressional maneuvering over the AMT (the sad, sorry details are blogged about here and here).
Now there’s equally disconcerting news for taxpayers who owe.
It’s bad enough when you have to hand over money to Uncle Sam. Well, now he wants your cash even more quickly. Big surprise … Not!
The IRS reportedly is reducing the "float" on checks mailed with income tax returns.
It now will convert checks into direct debits to enable it to get your money right away. So don’t be surprised when you see that ACH, for Automated Clearing House, on your post-tax-payment bank statement.
And before you drop your Form 1040 and accompanying check into a snail mail box, make sure you have — or will have — enough money in your account to cover it when the postman drops it off at the IRS.
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If you’re in a rush to pay the IRS, you must have a screw loose! Wait until April before mailing the check.