E-filing up but a few post offices still cater to tax procrastinators

Tax procrastinators have a choice this year.

You could physically stand in line at a suburban automated postal center or distribution center to get your documents postmarked by midnight on Thursday.

Or you could virtually stand in line to electronically file, cramming the servers at the last minute or praying your computer doesn't crash.

Ah, new technology versus old habits. The struggle continues this week as last-minute filers line up to get their federal and state annual income taxes completed and delivered.

About 3 million federal tax returns used e-filing, up about 2 percent compared to a year ago, for federal income tax returns, said IRS spokeswoman Sue Hales.

"We're expecting the bulk of requests for extensions by April 15," she said.

Roughly, 400,000 extension requests are expected, about the same as last year. In 2008, the federal government received 278,000 extension requests.

Those seeking extensions could be many first-time homebuyers, if they're closing on the home after April 15, and still want to claim the stimulus credit, Hales said.

As for the state, about 2.8 million individual returns have been received so far by the Illinois Department of Revenue. Of that group, about 2 million were e-filed, said state spokeswoman Sue Hofer.

The state expects about 6 million individual returns by the time all the paper files received by Thursday are processed, she said.

"We're not seeing a large number of extensions," said Hofer. "But it's early, and if an extension was filed using paper and regular mail, it may be in the processing center and not yet included in our data."

At this point, about 78 percent of the people who have already filed are expecting refunds.

"This is not unusual, as those who owe money would not be inclined to file early," Hofer said.

If people still have not filed, they should consider filing for an extension, meaning you must file by Oct. 15. This is done using Form 4868, and now can be done without giving any reason, said William E. Dever Jr., a CPA with JMG Financial Group Ltd. in Oak Brook.

"However, understand that this does not extend the time to pay any tax that may be due," Dever said. "It also does not extend the time to make IRA contributions."

Of if you're still determined to e-file late Thursday, beware, said Dever.

"If they plan to file electronically at midnight on the 15th, be aware of the fact that they may not be able to get through on time," Dever said.

Mark LaSpisa, co-founder of Vermillion Financial Advisors Inc. in South Barrington, suggests late-filers use a tax program like Turbo Tax, if considering doing it manually. If income is $57,000 or less - which accounts for about 70 percent of all taxpayers - you qualify to use free tax-preparation and filing software at www.irs.gov/freefile.

Or consider filing for an extension if you're stressed about the deadline or you fear you won't have the time to complete it without mistakes. There's no penalty for filing an you extension if no tax is due. Otherwise, follow the rules to make sure you don't pay penalties for not having enough taxes paid in, LaSpisa said.

The IRS also suggests that last-minute filers still make the deadline to avoid any penalties and choose direct deposit for quicker refunds.

For old-fashioned filers, insisting on paper documents sent through the mail, beware. Only two suburban distribution centers are available - in Palatine and Carol Stream - where a worker will accept and postmark your return until 11:59 p.m. Thursday.

Otherwise, you're on your own to weigh and postmark the documents in an automated postal center inside many suburban post offices.

There are 43 city and suburban automated centers this year, compared to 39 last year, due to cutbacks in work force and other services. E-filing has increased and e-mail has certainly chipped away at traditional postal mail, said U.S. Postal Service spokesman Sean Hargadon, based in Carol Stream.

"People are going to the Internet more than ever before," Hargadon said. "It's not the same as it's been."

Help for procrastinatorsTwo suburban processing-and-distribution plants will accept mail on Thursday until 11:59 p.m. from outside collection boxes and postmarked with the April 15 date:bull; 500 E. Fullerton Ave., Carol Streambull; 1300 E Northwest Hwy., PalatineThese post offices have an automated postal center available 24/7: bull; Algonquin, Arlington Heights, Bloomingdale, Buffalo Grove, Carol Stream, Cary, Crystal Lake, Des Plaines, Elgin-West side, Elk Grove Village, Glen Ellyn, Glenview, Gurnee, Hoffman Estates, Itasca, Lake Zurich, McHenry, Mount Prospect, Mundelein, Palatine, Prospect Heights, Round Lake, Roselle, Schaumburg, Vernon Hills, Villa Park, Wheaton, Wheaton-Danada, Woodfield Station, St. Charles, St. Charles Eastside, Libertyville, Woodstock, Rolling MeadowsSource: U.S. Postal Service