Tax Preparation Advice

by M.E. Hansen, All rights reserved. Do not duplicate without permission

Tax Return Tips

Following these suggestions should help your return receive prompt and accurate attention:

• Your return should be neat.
• Round money amounts to the nearest dollar. It makes calculations easier and reduces the chances for errors.
• Use last year's forms as a guide so you don't forget sources of income or deductions. Watch out, though, for changes in exemption and standard deduction amounts.
• Always file on time even if you don't have the money to pay. At the very least, file for an extension using Form 4868. Even if you file for an extension, you must estimate the taxes due and pay that amount by April 15.
• Include a check if you owe money. Put your Social Security number on the check, and use Form 1040-V to help the IRS improve processing efficiency.
• Keep a copy of your tax return and other documents for your records.
• Get help if you have questions. See a tax attorney, CPA or IRS representative, or visit a commercial tax preparation office.
• Get organized for next year. Set up folders for your records and receipts.
• Keep your records three years after the filing deadline.

Help Is Available

Believe it or not, the IRS is your best source of information. They have many publications such as Your Federal Income Tax and Tax Guide for Small Business. You can obtain a list of publications produced by the IRS by calling 1-800-829-3676. Or check your local public library, which probably has a reference set of IRS publications, updated annually for the tax filing season. The IRS also has a recorded information service- Tele-Tax at 1-800-829-4477 -with messages on over 140 tax topics, and offers a live assistance line at 1-800-829-1040 to answer your federal tax questions. On a local level, there are programs, such as Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE), designed to assist older, disabled, low-income or non-English speaking persons complete the basic forms. If you are required to file a state or local income tax return, again you can check your library for extra forms and assistance guides.

Check also the Government and Municipal Guide, or "blue pages," in your phone book for state and local taxpayer offices and assistance numbers. Filing and paying taxes is part of life, but it doesn't have to be an unpleasant experience. The more organized you are and the more you learn about how to file your taxes, the easier it will become. Many happy returns!

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