Jackson Hewitt Notes that for Most Taxpayers it's 'Business as Usual' as IRS
Announces its Expectation to Kick Off the Official Filing Season in
Mid-January
PARSIPPANY, N.J., Dec. 27 /PRNewswire-FirstCall/ -- With today's IRS
announcement, that they expect no delays to the start of the upcoming tax
season for the majority of taxpayers and a delay of approximately four weeks
for select taxpayers claiming certain tax credits, all due to the new tax law
for the Alternative Minimum Tax (AMT), Jackson Hewitt announces that it will
be business as usual for its tax preparation customers as well as most tax
filers.
Jackson Hewitt Tax Service(R), an industry leader providing full service
individual federal and state income tax preparation, alerts taxpayers to
consult with a tax preparer to determine if they can begin to file in mid-
January as normal.
"Since most of the AMT related activity - Congress and then the President
signing the new law and today's IRS announcement regarding the lack of a delay
to the filing season for most tax filers - has taken place during the holiday
season, we expect that most tax filers were not aware of all of the details,
especially, the possibility of a late start to the season," said Mark Steber,
Vice President of Tax Resources at Jackson Hewitt Tax Service. "We anticipate
that most tax filers will see the season as business as usual and will begin
seeking out their tax preparer for assistance and information in efficiently
preparing and filing their individual income tax return. For those taxpayers
who are unsure if they are impacted by the AMT, we suggest reaching out to a
local, knowledgeable tax preparer and getting the answers soon so that they
can better plan for the filing of their returns. All Jackson Hewitt offices
can assist these filers now with preparing their returns and placing them in
queue for fast submission to the IRS on their filing acceptance date."
Taxpayers affected by the delay are only those who are filing for the
following five credits. For these filers, the IRS expects to be able to begin
receiving their completed tax return beginning on February 11. - Form
8863, Education Credits.
- Form 5695, Residential Energy Credits.
- Form 1040A's Schedule 2, Child and Dependent Care Expenses for Form
1040A Filers.
- Form 8396, Mortgage Interest Credit.
- Form 8859, District of Columbia First-Time Homebuyer Credit.
Taxpayers are free to submit tax returns with Form 6251, Alternative
Minimum Tax - Individuals and the forms for all other individual tax credits
starting on January 14, the first day of electronic filing via IRS e-file.
Taxpayers who are not affected by any of the new tax considerations may
file as soon as they receive their Form W-2 or access their paperwork using
Jackson Hewitt's electronic W-2 download capabilities, helping them to avoid
the wait for their paper return in the mail and begin the process toward fast
receipt of an anticipated income tax refund. The deadline for filing a 2007
tax return remains the same - midnight on April 15, 2008.
Changes in Filing and Forms
Because the IRS will be delayed in processing both electronic and paper
tax returns for select taxpayers affected by the law change, some taxpayers
may experience a delay in receiving a tax refund, if they are entitled to one.
The IRS states that refunds are generally issued about six to eight weeks
after the IRS receives a paper return, and approximately half that time if
taxpayers file electronically and choose to receive a refund by direct
deposit.
Taxpayers also need to be aware that the IRS has already printed the basic
Form 1040 as well as the Instructions for Form 1040 - both key documents
needed for preparing a tax return. Neither will have the AMT patch
provisions, but the IRS has stated that the instructions for Form 1040 and
other forms affected are being revised and that additional supplemental
guidance will be made available.
"We saw a great deal of tax changes at the end of 2007; in addition to the
AMT patch, Congress passed the Mortgage Indebtedness Relief Act of 2007 and
the IRS released a clarification on allowed dependent exemptions concerning an
unrelated child," explains Steber. "Because of this, we expect to have more
taxpayers with questions about these late changes. This is one reason why now
more than ever, it helps to seek out a tax preparer who can provide assistance
in understanding and applying these considerations and can help taxpayers with
accurate tax preparation and free electronic filing (IRS e-file), ideally
leading to faster processing and receipt of a refund, if one is anticipated."
Jackson Hewitt has tax preparers available around the country to assist
taxpayers in learning about the Alternative Minimum Tax, changes to filing,
and other important information needed for the 2008 tax season. To schedule
an appointment with a local tax preparer or locate a nearby Jackson Hewitt
office, consumers are advised to contact 1-800-234-1040 or to visit
www.jacksonhewitt.com. To speak with Jackson Hewitt's Vice President of Tax
Resources, Mark Steber, about the AMT law, the delay and its affects, as well
as the other tax law changes that have been put into place, please contact
Melissa Connerton at 212-455-8001 to schedule an interview.
About Jackson Hewitt Tax Service Inc.
Jackson Hewitt Tax Service Inc. (NYSE: JTX), with over 6,500 franchised
and company-owned offices throughout the United States during the 2007 tax
season, is an industry leader providing full service individual federal and
state income tax preparation. Most offices are independently owned and
operated. The Company is based in Parsippany, New Jersey. More information
may be obtained at www.jacksonhewitt.com. To locate the Jackson Hewitt Tax
Service(R) office nearest to you, call 1-800-234-1040.
Contact:
Melissa Connerton Jorge Lavina
CooperKatz & Company CooperKatz & Company
212-455-8001 212-455-8041
mconnerton@cooperkatz.com jlavina@cooperkatz.com
SOURCE Jackson Hewitt Tax Service Inc.
Melissa Connerton, +1-212-455-8001, mconnerton@cooperkatz.com, or Jorge
Lavina, +1-212-455-8041, jlavina@cooperkatz.com, both of CooperKatz & Company
for Jackson Hewitt Tax Service Inc.
