Newswise — As tax season heats up, Saint Joseph’s University accounting professor Dennis Raible, M.B.A., C.P.A., recommends utilizing the free e-filing service provided by the IRS to submit tax returns. “It’s easy, fast and secure,” Raible says. “Nearly 99 million people used e-file in 2010, and one billion since 1990.” He also points out that tax-payers can file online now, and pay anytime on or before the April 18th deadline.
For last-minute filers, Raible counsels that “The sooner you file, the sooner you can receive a potential return.” He emphasizes that taxpayers who combine e-filing with the direct deposit option can receive their refund in as few as 10 days.
Raible also cites the opportunity to buy U.S. Series 1 Savings Bonds, an option for tax refunds that became available for the first time in 2010. By submitting IRS Form 8888, tax refund recipients can elect to save all or part of their reimbursement as bonds. According to the IRS website, these low-risk bonds are protected from inflation and allow you to earn money as you save, with interest accruing monthly and compounding semiannually. The bonds can be redeemed after 12 months, but reach full maturity at 30 years. Perhaps the best advice to take from Raible is to avoid filing late. “The penalty for failure-to-file is a real killer,” Raible says. “You can figure out how to pay the U.S. Treasury after the return is filed, without a hefty failure-to-file penalty. The penalty for filing late is 5% per month, up to 25% of the tax due. If a tax return is filed 6 months after its due date, the penalty is 25% of the unpaid tax.”
Raible, a certified public accountant and retired IRS Agent, also supervises Saint Joseph’s University’s Volunteer Income Tax Assistance Program (VITA), where SJU accounting students prepare the tax documents of those who cannot afford paid tax preparation services.
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