Eight Last-Minute Tips for Last-Minute Tax Filers
Appleton, WI 54912-8002 April 5 2006
With April quickly flying by, the April 17 (due to the 15th falling on a weekend in 2006) tax-filing deadline is weighing heavily on the minds of last-minute tax filers who are racing to beat the clock. Some estimates indicate that nearly half of all taxpayers flirt with the deadline. If you have not yet filed your taxes, here are some critical tips to assist you.
- Find needed tax forms at the IRS website www.irs.gov, local libraries, and post offices.
- Keep the IRS phone number handy for questions: 800.829.1040.
- Enter names, signatures, and social security numbers in all the right places. Do a quick, but thorough review to be sure they are where they need to be on all the forms. Be sure all social security numbers and names match what the Social Security Administration has on file. This is one of the top errors on tax returns.
- Check your numbers. These means math, but it also means double-checking for transposed numbers and correct transferring of all numbers. It is another top filing error.
- Attach all required forms and schedules.
o Attach W-2s, W-2Gs, 1099-Rs, and 9465s at the front of Form 1040 or 1040A; attach all others behind.
- Don't forget the check if you owe! Insert it, but do not attach it. On the check, include the following information:
o Payable to the United States Treasury.
o The tax year the check is for.
o The type of form you are filing.
o Taxpayer social security numbers.
o A daytime phone number.
- Be sure you get the complete package to the post office in time for the April 17 postmark and have them stamp it in your presence. Do not put it into a public mailbox and assume it is in by April 17; often the post office does not empty mailboxes until the following day (meaning a late postmark).
- "If you plan to contact a tax preparer, don't wait," adds Valerie Kennedy of Why Pay More? Income Tax Service in Merrillville, Indiana. "Calling as early as possible could ensure an appointment before the 17th. Just remember that even if your forms are prepared and e-filed earlier, your payment still doesn't have to be postmarked until April 17, 2006."
Don't be afraid to admit if you are over your head and need professional help. According to Kevin Huston, enrolled agent and NATP instructor from Asheville, NC, approximately one-half of all American taxpayers use a paid tax preparer to help them complete their tax returns. An unusual situation such as the sale of property or investments, receiving an inheritance, or starting or stopping a business or rental activity, can result in complications as well as opportunities on your tax return.
"Professional tax preparers help people with these situations all the time", adds Huston, "so what might be new and time consuming to you could take just a few minutes for an experienced professional to complete. A professional preparer's fees are often paid for by the tax savings they generate or the headaches they prevent."
If it becomes obvious that you cannot make the April 17 deadline to complete your tax return, individuals should apply for an automatic six-month extension before April 17 by filing Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. You can do so using tax software, paper copy sent via mail, or by filing through a tax professional. Tele-file is no longer available for this service. To fill out Form 4868, you will need to verify information contained on your 2004 tax return. Once you have filed the extension, keep proof of filing with your records. Filing an extension simply extends the time to fill out the paperwork. Don't think that this buys time to pay, however. 2005 tax amounts owed still need to be paid by April 17. If you do not pay at least 90 percent of what you owe, you will owe interest plus a penalty.
April 18 is a new day. Breathe easier, relax, and make a resolution not to cut things so short the next time the tax-filing deadline rolls around.
Tax preparers are experts who keep up-to-date year-round on tax law changes. They can save you time and offer insight on how to use the tax breaks available to you. To find a professional tax preparer, look to NATP. NATP maintains a listing of professionals in your area at www.taxprofessionals.com.
To receive a FREE brochure on how to find a tax preparer, visit the NATP Press Room at www.natptax.com and download a copy of NATP's "Finding the Right Tax Preparer" brochure.
Members of the National Association of Tax Professionals (NATP) assist over eight million taxpayers with tax preparation and planning. NATP is a nonprofit professional association founded in 1979 and provides professional education, tax research, and products to its members. The national headquarters, located in Appleton, WI, employs 43 professionals and 25 instructors.
NATP exists to serve professionals who work in all areas of tax practice and has more than 17,500 members nationwide. Members include individual tax preparers, enrolled agents, certified public accountants, accountants, attorneys, and financial planners. The average NATP member has been in the tax business for over 20 years and holds a tax/financial designation or a college degree. Learn more at www.natptax.com.
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Char De Coster (cdecoster@natptax.com)
Copywriter / Communications Editor
National Association of Tax Professionals (NATP)
720 Association Drive, PO Box 8002
Appleton, WI 54912-8002
Phone : 800.558.3402 ext. 1172
Fax : 920.968.7472
