IRS Tax Tips

As the April 18 filing deadline approaches, Northeast Cobb Patch offers you tips to make the chore of tax filing easier.

“The IRS is taking extra steps to help people who have lost their jobs or facing financial strain.  We are aware that the economic downturn has affected many people,” IRS Spokesman Mark S.Green said.  “We will continue to do everything we can to help ease the burden on struggling taxpayers in meeting their tax obligations.”

There is free tax information on IRS Web site, IRS.gov. This online tax center has numerous resources including links to information on tax assistance and relief to help struggling taxpayers.

IRS has $35 million in unclaimed refunds for Georgians who have not filed a 2007 Tax Return.  However, in order to collect the money, a return must be filed with the IRS no later than Monday.

If you wish to amend your 2007 return, it must be mailed by Monday.

Taxpayers who need extra time to file their federal returns this year can file the Form 4868 request for an automatic extension through IRS Free File. The extension gives you an additional six months, until Oct. 17, to file the tax return. Taxpayers can file the request for extension with traditional Free File or Free File Fillable Forms. Using Free File to prepare and electronically submit Form 4868 is free to everyone.

An extension of time to file is not an extension of time to pay. You need to estimate your tax liability and pay any balance due when you request the extension. Several payment options are available, including electronic funds withdrawal, credit card and check.

If you are unable to pay the total balance due, you should pay as much as possible and then contact the IRS about an installment plan. Even if you cannot pay the balance due, it is important to either file a return or request an extension to avoid the failure-to-file penalty. The late filing penalty is 10 times greater than the late payment penalty.  The late filing penalty is 5 percent per month (up to 25 percent) of the tax due.  Paying as much as you can when you file your return will help reduce interest and penalty charges. The current interest rate is 4 percent.

If you haven’t filed your tax return yet, e-file.  E-filing is free, fast, safe and accurate.  You get confirmation that IRS has received your return.  And, you get your refund in about 2 weeks if you have it directly deposited into your bank account.

If you are filing a paper return, use the pre-printed label.  It speeds up the processing of your return.  If needed, you can make pen and ink changes right on the label.

Double-check all names and social security numbers (SSNs) for yourself, spouse, and dependents. Incorrect or missing SSNs may result in disallowance of dependents, Child Care Credit, or Earned Income Tax Credit and could delay any refund.

Recheck all math entries and amounts pulled from the tax tables or Earned Income Tax Credit tables.

Make sure all W-2s and necessary schedules are attached to your return.

Don't forget to sign the return.  For a joint return, both spouses must sign.

What To Do If You Owe Money

Make checks payable to the "United States Treasury," and include your SSN, the tax year the payment is for (2010), and the type of tax (1040) in the memo section of the check.

Complete and include Form 1040-V, Payment Voucher, when sending your payment and return to the IRS.  This helps ensure that your payment is credited accurately; or you can charge federal income taxes to an American Express, Discover, MasterCard, or VISA account by contacting one of the two companies authorized by the IRS to process credit card payments.  Both companies will take charges by phone or through a web site.  Phone numbers and directions are included in your tax package or on the IRS Web site at www.irs.gov.

Have your refund deposited directly into your bank account.  It's faster and safer than waiting for a paper check and it is available whether you file a paper return or e-file.

How do I get forms and publications this close to April 18?

Virtually all forms and publications can be downloaded from the IRS Web site at www.irs.gov  (under the "Forms and Publications" link). 

Many local libraries have forms or a reproducible forms package and most are open evenings and weekends.

The most commonly used forms are available at IRS Taxpayer Assistance Centers.  You can call the IRS at 1-800-829-1040 or check the IRS Web site at www.irs.gov for the IRS location nearest you.

I have some questions and need help with my tax return. Where can I go to get assistance?

Volunteer Income Tax Assistance (VITA), programs assist people who earned $49,000 or less, and Tax Counseling for the Elderly (TCE) and AARP sites are available throughout the state to help low or limited income individuals and individuals age 60 and over with their 2010 income tax return preparation and electronic filing.  These sites are conveniently located at community centers, libraries and senior centers.  To locate the partner sites in this area call -   1-800-906-9887 or 211.

Assistance is available at many IRS offices.  Call the IRS at 1-800-829-1040 or check the IRS Web site at www.irs.gov to find the office nearest you.