Has an unknown number of non y2k-compliant machines. |
The New York Times advises the IRS has an unknown
number of non y2k-compliant machines. The IRS's computer systems have long
been known to be somewhat inefficient, and multiple databases are used for
taxpayer records. The article indicates that if needed, the 10 IRS Service
Centers could produce up to 10,000 manual refunds daily (in the aggregate), and
that taxpayers most in need would get their refunds first. Taxpayers with
special approvals called taxpayer assistance orders, would be processed first,
then taxpayers with gross income of $10,000 or less, increasing in $5,000
increments of income.
My comment to the above is - beware! I am not an overly concerned Y2K
person. I have newer computer equipment and good, current software, so I
have, in my opinion, taken reasonable precautions my business and favorite hobby
will function next year. But, can you imagine how long it could take to
get a tax refund if your income is, say $100,000, and probably 98% of everyone
else comes first, and only 10,000 refunds are processed a day? What a
potential problem! How many people will the budget-strapped IRS put in
charge of determining who will get their refund, and manning the telephones to
talk to angry citizens? So, I really recommend that you spend a little
extra time this year to project your taxable income, and don't end up with a big
overpayment.
CPA's have long done "year end planning" to try to make their clients
penalty-proof, and to have them pay in as much tax as is advantageous or
required. Often, the result of those efforts is, frankly, nothing more than a
timing difference that provides more deductions in the current year. I am
concerned the IRS may well have a problem in the year 2000, and I will run
enough numbers before year-end to ensure I am not significantly overpaid on my
1999 taxes!
I'll do a brief article on year end planning for taxes next month, so come back
to our site in early December to get some suggestions for what you might do
before year end to help your tax situation!
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Last modified: November 08, 2002