Preparers trying to get taxpayers to file sooner

Kevin Rademacher

Thursday, Feb. 3, 2005 | 11:16 a.m.

It's not going to alleviate the April rush, but tax-industry officials are trying to get clients fired up about filing early.

Kansas City, Mo.-based H&R Block has launched its online "drop-off" service for taxpayers who don't want to venture into an office. The IRS continues to roll out an array of online products designed to encourage taxpayers to capitalize on quick return payments from those who get in line first.

Tim Linafelt, a national spokesman for H&R Block, described the opening days of February as the "first peak" for tax preparers.

"This peak, though, is actually higher than April," he said. "People who are getting a refund want it now. ... These days people demand speed."

While refusing to release the number of returns filed for "competitive reasons," Linafelt said Feb. 1 was the company's busiest day ever for online tax filings for H&R Block.

The IRS has said that taxpayers expecting refunds -- by using its electronic e-file program and a new service that will automatically deposit refunds into bank account -- can get their money in a matter of days if they beat the rush and file early.

Despite the efforts to attract early filings, Stephen Schuneman, owner of Accu-Tax in Henderson, said he has seen little success in attempts to speed up clients.

"I've tried -- over 30 years -- dozens of things, discounts giveaways, you name it, to get people in early" he said. "The fact is it just takes time to get W-2s and other information together."

IRS statistics tend to corroborate that assumption. The agency said that despite its efforts more than 30 percent of the nation's roughly 132 million tax returns are filed in the two weeks leading up to April 15.

The IRS also is continuing its effort to give more money away to taxpayers.

Only about 25 percent of the eligible taxpayers nationwide are taking advantage of the Earned Income Tax Credit. In Nevada, the IRS said that about 69 percent of eligible taxpayers are claiming the EITC.

"That still leaves a lot of money on the table," said Raphael Tulino, an IRS spokesman.

Of those claiming the EITC in Nevada, 103,433 of the 150,946 returns came from Clark County and received $175 million in EITC credits.

To be eligible for the EITC, taxpayers must earn less than $33,692 if they have two or more children, $29,666 with one child or $11,230 with no children. The income limits are $1,000 higher if a married couple is filing a joint return.

The maximum credit is $4,204 for a family with two children, $2,547 with one child and $382 with no children. So instead of paying taxes, these low-income families can receive financial assistance with the credit.

The EITC was established in 1975 as a means to encourage people to work. With the credit, holders of low-paying jobs don't have to worry about paying taxes, so the tax issue won't discourage them from seeking work.

IRS officials have suggested that many EITC credits go unclaimed because the potential recipients to not meet minimum filing requirements and thus do not have to submit a return. Without filing a return, however, they can't receive the refund.