Who says the IRS is not here to help you! The Internal Revenue Service has a list of 10 suggestions they think will help taxpayers in the preparation and filing of their 2009 personal income tax returns. While we agree that some of the tips are helpful, self prepared returns can be a problem if you have any complications or an unusual situation. Be sure to retain a copy of the tax return if you file electronically. Now, here is the IRS list:
- Start gathering your records Round up any documents or forms you’ll need when filing your taxes: receipts, canceled checks and other documents that support an item of income or a deduction you’re taking on your return.
- Be on the lookout W-2s and 1099s will be coming soon from your employer; you’ll need these to file your tax return.
- Try e-file When you file electronically, the software will handle the math calculations for you. If you use direct deposit, you will get your refund in about half the time it takes when you file a paper return. E-file is now the way the majority of returns are filed. In fact, last year, 2 out of 3 taxpayers used e-file.
- Check out Free File If your income is $57,000 or less you may be eligible for free tax preparation software and free electronic filing. The IRS partners with 20 tax software companies to create this free service. Free File is for the cost conscious taxpayer who wants reliable question-and-answer software to help them prepare a return. Visit IRS.gov to learn more.
- Consider other filing options There are many different options for filing your tax return. You can prepare it yourself or go to a tax preparer. You may be eligible for free face-to-face help at an IRS office or volunteer site. Give yourself time to weigh all the different options and find the one that best suits your needs.
- Consider Direct Deposit If you elect to have your refund directly deposited into your bank account, you’ll receive it faster than waiting for a paper check.
- Visit IRS.gov again and again The official IRS Web site is a great place to find everything you’ll need to file your tax return: forms, tips, answers to frequently asked questions and updates on tax law changes.
- Remember this number: 17 Check out Publication 17, Your Federal Income Tax on IRS.gov. It’s a comprehensive collection of information for taxpayers highlighting everything you’ll need to know when filing your return.
- Review! Review! Review! Don’t rush. We all make mistakes when we rush. Mistakes will slow down the processing of your return. Be sure to double-check all the Social Security Numbers and math calculations on your return as these are the most common errors made by taxpayers.
- Don’t panic! If you run into a problem, remember the IRS is here to help. Try IRS.gov or call our customer service number at 800-829-1040.
We recommend tips 1 and 2 about collecting information. If you forget a 1099 when you prepare your return you will receive a letter from the IRS telling you about it and suggesting a change to your return.
Tips 5 and 6 are good to remember and we often recommend direct deposit of tax refunds. It is important for our clients to receive and spend their tax refunds before they file bankruptcy. Direct deposit speeds the refund process considerably.
Tip number 7 about www.irs.gov is interesting but information overload is a real possibility. The IRS website has thousands of pages and a really poor search engine. It is an easy place to get lost. However, tip number 8 about publication 17 for 2009 is a good one. That publication can be helpful if you are preparing your own return.
Be careful if you prepare your own return. It is easy to make a mistake that can cost you thousands of dollars in extra tax or in lost refund. We prepare returns for our clients, when asked, at a cost that is usually competitive with professional preparers. However, we need to have all required information in our office at least three weeks before the filing deadline if you expect us to prepare a timely tax return.
Forget about calling the IRS. Tip 10 is a waste of time. The IRS Inspector General for Tax Administration admits that many calls to the IRS go unanswered. It is easy to sit on hold for as much as an hour without the call being answered. During the tax filing season, the IRS shifts staff from collections and enforcement into phone answering duties. This can result in the phone being answered by someone who does not prepare or examine tax returns as part of their job and who may give you the wrong answer to your questions.
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