The shutdown that brought parts of the US federal government to a grinding halt in October is over. Effects of the government shutdown, however, will linger into 2014. Perhaps the most notable effect to individuals in Canton, Ohio, families in North Canton, Ohio, and business owners throughout Stark County, Ohio is a late start to the 2014 tax season. Originally expected to open on January 21, IRS officials have announced a one- to two-week delay. And the team at Appalachian Basin CPAs is providing key details on what this means to everyone filing taxes in the US.

First, we’ll share the official reasons for the impending delay. According to a statement released by the IRS in late October, the 16-day shutdown forced nearly 90 percent of IRS operations to close. Parts of the government agency were able to maintain some functionality while other workstreams were entirely offline. This caused a backlog of approximately 1.4 million pieces of correspondence, and pressed the pause button on pivotal computer programming.

Although both effects of the government shutdown are contributants to what officials are calling an unavoidable late start to the 2014 tax season, programming could be considered more impactful than paperwork. Reason being, there are more 50 systems involved in filing taxes in the US. And the word from the IRS is that extra emphasis is being placed on the need for systems to prevent refund fraud and identity theft.

This isn’t the first we’ve heard of the IRS working to fight fraud and theft. In fact, the IRS announced that it is collaborating with more than 130 financial institutions in March of this year. According to the agency, the purpose of the teamwork is to identify theft fraud schemes and stop would-be stolen refunds from getting into the hands of criminals. Surely these preventative partnerships hinge on digital links. And when you consider the following IRS stats, taxpayers in Canton, North Canton, and other parts of Stark County may deem the added defenses worth waiting for.

IRS Criminal Investigation Figures

• The number of IRS identity theft investigations tripled in fiscal year 2012.
• Over 670 criminal investigations opened between October 2012 and March 2013.
• Nearly 500 people have been indicted on IRS theft- and fraud-related charges in the US.
• Criminals are receiving sentences as long as 20 years and serving an average of four years.

Granted most individuals in North Canton, Ohio and company leaders across Stark County, Ohio look to finish filing taxes early. The seasoned team at Appalachian Basin CPAs is pointing out the positives that extra time provides. As the 2014 tax season should begin no sooner than January 28 and no later than February 4, the IRS has more time to protect you just as you have more time to prepare. We previously told you about expiring tax credits and incentives. So, if you haven’t tailored your tax plan to account for the lost perks, add the opportunity to consult an expert to the effects of the government shutdown that affect you. Go to www.abbacpas.com to view this team’s areas of expertise, and call 330.437.1182 for an appointment.

Appalachian Basin CPAs
213 Market Avenue North
Canton, Ohio 44702
330.437.1182
www.abbacpas.com