IRS Audit, IRS Audit Help

Preparing To Prepare Your Tax Return

January 17, 2013 - IRS Audit, IRS Audit Help

January is the time of year when Americans start thinking about their tax returns. You may not do anything about it yet. But you start thinking about it. Television ads bombard us 24 hours a day. Have you always gotten a refund? Are you going to get a refund again this year? Or will you owe taxes? Again? One way to know for sure is to get all your tax documents together and do a “forecast” of your results. In order to have an accurate picture you’ll need to have as much of your information as you possibly can.   Getting Started If you are a wage earner, if you take the standard deduction instead of itemizing your deductions, if you have your W2 in your hand, you may be ready to get started. In years past we were already electronically filing tax returns by the second Friday in January. But this year NO returns will be e-filed before January 30th. Internal Revenue Service needs time to finish designing their forms and testing their e-filing programs since Congress waited so long to pass our newest tax laws with “fixes” and “patches.” So even though you might have to wait until January 30th to e-file, do file electronically if you can. File your return as soon as you are able to do so. If you itemize deductions, you might have to wait until into February to file your return. Those of us who file some of the more complicated forms will even have to wait until March. Don’t think you can save time and get your refund faster by mailing you return. It can take the IRS 8-12 weeks to process a return that is mailed in.   E-Filing I can tell you from first-hand experience that e-filing is THE way to file your return. Your return will be delayed if you choose to mail your return. This is not a negative comment about our mail delivery service. It is just that e-filing is SO much faster. PLUS you don’t have a human being key-punching data from your return into a computer. Humans can make mistakes. That is just being human, after all. I’m not paid to promote e-filing, but I am here to tell you there are huge benefits to you when you do file your return electronically. Preparers who file more than 11 (eleven) tax returns are REQUIRED to e-file those returns. If they file a return by paper they must explain why the return was not e-filed. Do you have to file as soon as tax season opens? No. You can choose to wait. 2012 Individual Income Tax returns are due Monday, April 15th, 2013. Calendar-year Corporation and Partnership Income tax returns are due Friday, March 15th.   Extensions Both individuals and businesses can request an extension of TIME to file their paperwork. An extension of time does not give you more time to PAY your taxes. If you have taxes due, pay them (estimate them if necessary) before the due date of your return. If you file an extension for more time and you wind up owing tax when you do file, you will owe both tax AND interest AND maybe penalties, too. Neither you nor I want that for you.   Always to your lowest legal tax, Nellie T Williams, EA