IRS offers timely set of tax tips

Wednesday, April 9, 2008

ST LOUIS -- With the April 15 tax deadline almost here, the Internal Revenue Service has some tips for busy taxpayers.

E-file

The easiest, fastest and most accurate way to prepare and file your tax return is electronically. Because the program checks for errors and required information, they are 99 percent accurate. Taxpayers who file electronically receive an acknowledgement that their return has been received and accepted for processing. And when you e-file and choose direct deposit, you can get your refund in as little as 10 days. "There is no need to be in line at the Post Office on April 15," said IRS spokesperson Michael De-vine. "Our advice is to join the more than 1.2 million Missouri taxpayers who have already e-filed their 2007 taxes."

Do your taxes yourself, for free

Most people can E-file for Free. More than 1.8 million Missouri taxpayers earning $54,000 or less are eligible for free tax preparation and free e-filing through the IRS-sponsored Free File program at the IRS Web site, www.irs.gov. Choose the Free File icon and then the software product that works best for you. Even people who don't normally file a tax return but are filing to get the Economic Stimulus Payment can use the Free File program.

Don't miss out on the Economic Stimulus Payment

Starting in May, economic stimulus payments will be sent to more than 130 million households. To receive a payment, taxpayers must have a valid Social Security number, $3,000 of qualifying income and file a 2007 federal tax return. IRS will take care of the rest. "Millions of retirees, disabled veterans and low-wage workers who usually are exempt from filing a tax return must do so this year in order to receive a stimulus payment," said Devine. Go to www.irs.gov and click on Rebate Questions? for details.

Get your taxes done for free.

Hundreds of volunteer tax help sites are open to assist taxpayers with low- to moderate-income ($39,700 and below) in preparing basic tax returns for free. Sponsored by various organizations, sites can be found at convenient neighborhood sites -- such as libraries, senior centers, town halls or college campuses. To find the nearest volunteer site, call 211 or 311 (where available) or the IRS at (800) 906-9887.

Where's My Refund?

If you already filed your 2007 federal tax return and are due a refund, you have several options for checking on the status of your refund. One way is to use "Where's My Refund?" an interactive tool on the IRS Web site at IRS.gov. Simple online instructions guide taxpayers through a process that checks the status of their refund after they provide identifying information shown on their tax return. Whether you split your refund among several accounts, opt for direct deposit into one account, or ask IRS to mail you a check, Where's My Refund? gives you online access to your refund information.

Need more time?

Taxpayers can get an automatic six-month extension of time to file their tax returns by filing Form 4868, Automatic Extension of Time to File. E-filing a request for an extension is convenient, safe and secure. The extension gives taxpayers until Oct. 15 to file the tax return, it does not give the taxpayer an extension of time to pay any taxes due. You will owe interest on any amount not paid by the April deadline, plus a late payment penalty if you have not paid at least 90 percent of your total tax by that date.

Special rules for military and flood victims

Some taxpayers can wait until after April 15 to file a return, pay any taxes due and make IRA contributions for 2007. As a general rule, those eligible get the extra time without having to ask for it. Eligible taxpayers include:

* Disaster-area taxpayers in parts of Missouri affected by recent floods, storms and tornadoes have until May 19.

* Members of the military serving in Iraq, Afghanistan or other combat zone localities. Normally, the postponement is until 180 days after the service member leaves the combat zone.

* Claim your 2004 refund. More than 24,900 Missouri workers failed to file an income tax return for 2004 and are missing out on $19.6 million in unclaimed refunds. The law provides most taxpayers with just a three-year window of opportunity for claiming a refund. To collect the money, they must file their 2004 returns with the IRS no later than April 15, 2008.

Get every credit you're eligible for. Workers with low incomes should review their eligibility for the Earned Income Tax Credit, which could be as much as $4,716. "If they qualify and claim the credit, they could pay less federal tax, pay no tax or even receive a refund beyond the amount of tax withheld," said Devine.

More than 439,000 Missouri taxpayers received more than $842 million in EITC on their 2006 federal income tax returns.

Get answers fast. One of the best sources for answers to tax questions is the IRS Web site. So far this year, there have been more than 111 million visits to IRS.gov, an increase of more than 16 percent over the same period last year.

Don't be confused by internet sites that end in .com, .net, .org or other designations instead of .gov. The address of the official IRS governmental Web site is www.irs.gov.

Don't get scammed

Watch out for scammers who try to steal your identity by using the IRS as a lure. If you receive unsolicited email or telephone calls from anyone purporting to be from the IRS, it's probably a scam.

Don't click on any links; don't answer any questions. Forward the emails or report the calls to phishing@irs.gov. Also, watch out for those who claim to have found the secret formula to escaping taxes. It's not likely. Look on IRS.gov for the "Dirty Dozen" tax scam list which includes Email Phishing, Tax Rebate Scams, Frivolous Arguments and Tax Preparer Fraud.

Still using a pencil and calculator?

Devine offered these tips for those still working on their paper tax forms:

* Put all required Social Security numbers on the return. Missing, incorrect or illegible Social Security Numbers can delay or reduce a tax refund.

* Double-check your figures.

* Sign and date your form. Both spouses must sign a joint return, even if only one had income.

* Attach all required forms and schedules.

* Choose direct deposit to get your refund and economic stimulus payment faster.

* Use the peel-off label if you choose to file a paper return. You can line through and make needed changes right on the label.

* If you don't have a peel-off label, verify where to file your return with information in the tax booklet or at IRS.gov.

* Send your return, with proper postage, by the April filing deadline.

* Forms and instructions can be downloaded from the IRS Web site, www.irs.gov, 24 hours a day.

Respond to this story

Posting a comment requires free registration: