Many scramble to beat April 15 tax deadline

Published 12:00 am Saturday, April 3, 2004

Spring has arrived, bringing with it flowers, cleaning and that annual rite that people either cannot wait for or absolutely dread - filing the taxes.

With the April 15 deadline approaching, many Lawrence Countians scramble to crunch the numbers in hopes of a big return. More and more Americans file every year, many seeking professional help right up against the deadline.

"We stay pretty busy throughout the entire tax season from January to April 15," said South Point CPA Bob Payne. "The busy season starts around the first of February when people get their W-2s. In the middle of March things start to slow down but then pick back up."

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The numbers

Overall, more than 222 million returns were filed in 2003. According to the Internal Revenue Service, nearly 131 million

individual income tax returns were filed last year.       

The IRS processed 8.8 million returns from Ohio last year - 5.4 million individual claims. Local figures were not readily available, but numerous agencies stay busy during the first quarter of the year.

Payne said his company processed more than 500 individual returns last year and many more for businesses.

For several years, the Lawrence County Chapter of AARP has been providing free tax help to people of all ages, incomes and business backgrounds, and 2004 is no different.

So far, the AARP has filed nearly 1,000 returns for people from across the county with a 99-percent accuracy rate. They have filed a total refund amount of more than $1 million, including $220,000 in Earned Income Credit.

"We get such pleasure helping out people who can't afford it," said South Point resident and AARP volunteer Emmerson Moore. "Many of them have simple returns but are intimidated by the IRS."

Getting help

Kitts Hill resident Shannon Heaberlin stopped in at Park Avenue Thursday to file his personal taxes and those for his business, Heaberlin's Heating & Air Conditioning.

"I went to South Point to see them last year. Now, they have a stop in Ironton, so it was closer," he said. "It is great. You don't need an appointment. You just walk in and they take good care of you. They are very knowledgeable."

For whatever reasons, many people wait until the last minute to file. Payne can relate because he has prepared hundreds of returns for other people but still has not completed his own.

"A lot of people know they owe, but they don't know how much, so they are scared," he said. "And a lot of it is just procrastination."

It is important to pay your taxes by the April 15 deadline because the IRS will hit you with stiff penalties, Payne said. Extensions for filing are available but not for paying.

"If you owe money and can go out and borrow it from somewhere else, do it," Payne said. "You do not want to borrow the money from the IRS."

The AARP volunteers said they enjoy their work and are amazed at how thankful people can be.

"We try to educate tax payers as to, 'You should do this, you should do that,'" Moore said. "We don't just see this as a one-time deal. We want to help them."

Peggy Harper of Ironton has taken advantage of the free tax service for several years and said she always walks away happy.

"They have always been so nice about it. They make sure I don't have to file," she said. "I appreciate that. The rules are always changing and I don't know what they are."

A changing system

Tax preparers all agree that professional help is a good idea because the laws are confusing and constantly changing. Popular tax guides are often more than an inch thick and the entire tax code is volumes and volumes, Payne said.

For 2004, several things have changed, including the fact that people need to remember to deduct $400 from their $1,000 claim if they received the advanced child care credit last year, Payne said.

Another change is that investors need to understand that at least six different rates for capital gains exist, he said.

Overall, the biggest change in the tax system is the move to electronic filing.

Last year, 52,944,762

Americans filed electronically. Roughly 2.2 million Ohioans took advantage of the new technology.

What is the difference? Speed and accuracy.

It makes the refund faster and much more accurate because it decreases the chance for human error, Payne said.

"This year, we have done more than 200," he said. "Next year, we are going to try to do them all electronically."

Of the AARP's nearly 1,000 returns, 99 percent were filed electronically this year. More than 40 percent of them were for people over the age of 60, said Kathy Moore, local volunteer and AARP's district coordinator for southern Ohio.

"By 2007, the IRS wants 80 percent of the country to file electronically," Kathy Moore said. "They are really starting to push it."

In its final week, AARP volunteers will be preparing federal and state tax returns from 9:30 a.m. to 4:30 p.m. Wednesday at the Chesapeake Branch of the Briggs Lawrence County Library; from noon to 4 p.m.

Thursday at the Park Avenue Apartments and from 9:30 a.m. to 4:30 p.m. Friday at the Southern Branch of the Briggs Lawrence County Public Library.