Filing may be more complicated

Advertiser News Services

The nation's tax laws, labeled an "unbelievable mess" by Treasury Secretary Paul O'Neill, are in the midst of dozens of changes ushered in by last year's sweeping tax cut.

One new line on this year's tax forms is blamed for more than 1 million errors.

The 10-year, $1.35 trillion tax cut passed by Congress and signed by President Bush in June made 441 tax law changes, according to H&R Block Inc. Most will be phased in, but some important ones are already in effect.

Many of those — even ones that benefit millions of taxpayers — are adding more layers of complexity to a tax code that O'Neill said last week is "an abomination." The Internal Revenue Service expects about 132 million individual returns this year, including a projected 45 million filed electronically.

Don't forget: The deadline is midnight April 15 in most of the country. Procrastinators can request an automatic four-month extension to file the forms, but any taxes owed must be paid on time to avoid penalties.

Through Feb. 15, average refunds were $2,210, almost 12 percent more compared with the same period last year, mainly because of the lower tax rates and a bigger child tax credit, according to statistics released last week. E-filing by people using home computers is 38 percent ahead of last year.