As the end of the tax filing season approaches IRS Spokesman Mark Green "suggest taxpayers to be aware of some helpful tax information during the rush". 

How is the tax filing season going?

*     The tax filing season is progressing smoothly.  We expect about 25 percent of the 4 million returns from Georgia to be filed during the last two weeks of the filing season (about 1  million returns). In addition, the IRS estimates that nearly 250,000 Georgians will request an extension this year (about 10.3 million nationwide). 

*     Georgians are e-filing in record numbers.  E-filing is up 9 percent so far this filing season with e-filing on-line (through a PC) showing a 17 percent increase over the same time last year. 

The tax filing deadline this year is Tuesday, April 15, except those counties affected by the severe storms and tornado.  As a result, the IRS is postponing until May 19 certain deadlines for taxpayers who reside or have a business in the disaster area. The postponement applies to return filing, tax payment and certain other time-sensitive acts otherwise due between March 14 and May 19.  The counties are Bartow, Burke, Dekalb, Floyd, Fulton, Jefferson, and Polk. 

What are some tips for those who wait until the last minute? 

*     If you haven't filed your tax return yet, I encourage you to e-file.  E-filing is fast and accurate.  You get confirmation within 48 hours that IRS has received and accepted your tax return.  And, you get your refund fast - in less than two weeks if you have it directly deposited into your bank account. 

*     Double-check all names and social security numbers (SSNs) for yourself, spouse, and dependents.  Incorrect or missing SSNs may result in disallowance of dependents, Child Care Credit, or Earned Income Tax Credit and could delay your refund.  

*     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. 

*     Recheck all math entries and amounts pulled from the tax tables or Earned Income Tax Credit tables. 

*     Make sure all W-2s and necessary schedules are attached to your tax return. 

*     Don't forget to sign and date the return.  For a joint return, both spouses must sign. 

*     If you owe money:

*     Make checks payable to the "United States Treasury," and include your correct name, address, SSN, daytime phone number, the tax year the payment is for (2007), and the form number (1040) on the front of the check; and

*     Complete and include Form 1040-V, Payment Voucher, when sending your payment and tax return to the IRS.  This helps ensure that your payment is credited accurately. 

*     Have your refund deposited directly into your bank account.  It's faster and safer than waiting for a paper check and it is available whether you file a paper return or e-file. We have already seen a seven percent increase in the number of people using direct deposit this year. 

*     Remember, the deadline for tax year 2004 refunds is fast approaching.  If you have not yet filed your 2004 federal income tax return, you must file it by April 15, 2008, in order to get any refund that is due you.  The IRS has more than $38 million in refunds for almost 44 thousand Georgians who have not filed their 2004 tax returns - with half due a check for $552 or more. 

*     If you wish to amend your 2004 tax return, you must mail the amended tax return by Tuesday, April 15th.  

What do I need to do to get my stimulus payment? 

*     You don't want to miss out on getting your stimulus payment. Payments will start going out the beginning of May. You must file a 2007 tax return to get a stimulus payment. Once we receive your return, the IRS will do the rest - determine if you're eligible, calculate the payment amount and issue the payment. 

*     Even if you aren't required to file a tax return, you may be eligible for a stimulus payment and will need to file a tax return for 2007 to get your payment (a simple Form 1040A). If you had at least $3,000 in qualifying income in 2007, you would be eligible for a stimulus payment. Qualifying income includes Social Security retirement, disability, and survivor's benefits (but not SSI); Railroad Retirement Tier 1 benefits; disability, pension and survivor's benefits paid by the Veterans Administration; and earned income such as wages, salaries, tips and self-employment. 

*     Stimulus payment information including frequently asked questions, a calculator to determine your stimulus payment amount, and a sample Form 1040A is on the IRS Web site at www.irs.gov. 

What should I do if I can't file by April 15? 

*     If you can't get your 2007 tax return completed and mailed by April 15, 2008, you can request an extension. Your request for extension must be mailed or e-filed no later than April 15th.  The extension will give you an automatic six additional months (until October 15, 2008) to file your 2007 tax return.  Remember, this is an extension of time to file, not pay.  You should estimate any tax due and pay it with the extension to avoid interest and penalties.  There are three ways to request an extension: 

*     You can request an extension by mailing in Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, to the Internal Revenue Service.  Form 4868 is available on the IRS Web site at www.irs.gov.   

*     You may e-file an extension request using tax preparation software on your own computer or through a tax preparer.  You will get an acknowledgment that the IRS has received your request. 

*     Or, if your preliminary calculations indicate you will owe money and you pay all or part of this estimate by using a credit card, you can also get/request an extension to file at the same time.  This can be done by phone or over the Internet and you get a confirmation number when you've completed the transaction.  More information is available in your tax package or on the IRS Web site. 

What are my options if I owe money and can't pay? 

*     You should timely file your return and pay as much as you can by April 15 because the late filing penalty is 10 times greater than the late payment penalty.  The late filing penalty is 5 percent per month (up to 25 percent) of the tax due.  The late payment penalty is ½ of 1 percent per month.  Paying as much as you can when you file your return will help reduce interest and penalty charges. The current interest rate is 6 percent. 

*     If you can't pay everything you owe when you file your tax return, you can request to pay the taxes you owe in monthly installments by completing and attaching Form 9465, Installment Agreement Request, to your tax return.  List the amount you propose to pay each month.  You should receive a response from the IRS within 30 days, but if you filed after March 31, it may take longer for a reply. Also, you have the option of using the IRS online installment agreement program available on the IRS Web site at IRS.gov. There is a $105 one-time fee for entering into an installment agreement and interest and penalties will continue to accrue until the balance is paid in full.  The fee is $52 when payments are deducted directly from your bank account.  Lower income individuals may be eligible for a reduced fee of $43.  Check the IRS Web site at www.irs.gov for more information on installment agreements. 

How do I get forms and publications this close to April 15? 

*     There are several ways you can get the forms and publications you need to complete your tax return with "tax day" right around the corner. 

*     Virtually all forms and publications can be downloaded from the IRS Web site at www.irs.gov  (under the "Forms and Publications" link) including prior year tax forms, instructions and publications.  

*     Many local libraries have forms or a reproducible forms package and most are open evenings and weekends. 

*     The most commonly used forms are available at IRS Taxpayer Assistance Centers.  You can call the IRS at 1-800-829-1040 or check the IRS Web site at www.irs.gov for the IRS location nearest you. 

I have some questions and need help with my tax return. Where can I go to get assistance? 

*     Look in your tax package first.  You can find answers to many of your questions.  There is even a sample form with numbers referring you to specific pages for each line, along with tax tips that make filing easier. 

*     Tax information, forms and publications are available 24 hours a day on the IRS Web site at www.irs.gov. You can also check on the status of your refund or check out the IRS Free File program while on the IRS Web site. 

*     TeleTax offers recorded tax information on over 150 topics.  These topics are listed in your tax package.  TeleTax is available 24 hours a day, 7 days a week from a touch-tone phone by calling 1-800-829-4477. 

*     You can call the IRS toll-free assistance line at 1-800-829-1040.   

*     About 450 Volunteer Income Tax Assistance (VITA), Tax Counseling for the Elderly (TCE) and AARP sites are available throughout the state to help families with incomes under $40,000, individuals with incomes under $15,000 and individuals age 60 or older (TCE and AARP sites).  These sites are conveniently located at community centers, libraries and senior centers.  Call the IRS at 1-800-829-1040 to find the site nearest you. For the location of AARP tax sites, you can also call AARP at 1-888-227-7669. 

*     Assistance is available at many IRS offices.  Call the IRS at 1-800-829-1040 or check the IRS Web site at www.irs.gov to find the office nearest you. 

What options do I have if I want to e-file my tax return? 

*     IRS Free File - About 1million Georgians are eligible to electronically prepare and file their

federal tax returns for free this year using the IRS Free File program.  The Free File program is available to those with an AGI of $54,000 or less.  Just access the Free File Web page from the IRS Web site at www.irs.gov.  Click on "Start Now" and check out the eligibility requirements for each participating software company and select the company that meets your needs. You'll then find you're at the software company's Web site and ready to go.

*     Filing Through Your PC-If you have a computer and Internet access, you can e-file from the comfort of your home using tax preparation software.  To find out more information about e-filing from your personal computer, go to www.irs.gov and click on e-file. 

*     Filing through a Tax Professional-Many tax professionals are authorized by the IRS to electronically file returns for their clients.  To find a tax professional near you that can e-file your return, go to www.irs.gov, click on the "e-file" link, then the "IRS e-file for Individual Taxpayers" section, then the "Authorized e-file Provider" link. 

Are there ways I can electronically pay if I owe tax? 

*     Electronic payment options available are electronic funds withdrawal and payment by credit card. 

*     Electronic funds withdrawal is free and taxpayers decide when the tax payment is scheduled to be withdrawn from their bank account.  Electronic funds withdrawal is available only to those who e-file.  You can file early and, at the same time, schedule the electronic funds withdrawal as late as April 15, 2008.  Check with your bank to make sure they offer electronic funds withdrawal and to get the correct routing and account numbers. 

*     Both electronic filers and those who file a paper return also have the option of charging federal income taxes to an American Express, Discover, MasterCard or VISA credit card by contacting one of the two companies authorized by the IRS to process credit card payments.  Both companies will take charges by phone or through a web site.  There is no IRS fee for credit card payments; however, the service providers do charge a convenience fee based on the amount charged. 

Once you've completed the transaction, be sure to write down the confirmation number and the amount of your tax payment.  The two companies that process credit card payments are:  

*     Link2Gov Corporation may be reached at 1-888-PAY-1040 (1-888-729-1040) or at www.PAY1040.com.  Their Customer Service number is 1-888-658-5465.

*     Official Payments Corporation may be reached at 1-800-2PAY-TAX (1-800-272-9829) or at www.officialpayments.com.  Their Customer Service number is 1-877-754-4413. 

*     If you are already enrolled in the Electronic Federal Tax Payment System (EFTPS), you can electronically pay your taxes either on-line or by phone.  You schedule your payment at least one calendar day before the tax due date.  If you haven't enrolled in EFTPS, it's easy.  Go to www.eftps.com to enroll. It can take 15 calendar days to receive your PIN.  With less than 2 weeks before the tax deadline this year, this may not be an option for you to make tax payments due by April 15th  if you have not enrolled. 

*     More information on electronic payment options can be found on the IRS web site at www.irs.gov under the "electronic IRS - file, pay and more" link. 

How can I check on my refund? 

*     You can check on the status of your refund through the IRS Web site at www.irs.gov using the interactive "Where's My Refund?" tool.

*     "Where's My Refund?" is quick and easy and it's available 24 hours a day. Simple on-line instructions guide you through a process that checks on the status of your refund after you provide information from your tax return (including your Social Security number, your filing status and the exact amount of the refund listed on your tax return) so be sure to have your return with you when you go online.  You'll be able to get information about the status of your return including:

*     Acknowledgement that your return was received and is being processed,

*     The mailing date or direct deposit date of your refund, and

*     Notice if your refund has been returned to the IRS because it could not be delivered. 

*     If your refund check was undeliverable, you may be able to update your address while you are online. 

*     If your check is lost, you can start the process of tracing the check while you are in the system. 

*     Other options - you can get information on the status of your refund by calling the IRS Refund Hotline at 1-800-829-1954 or by calling the automated IRS TeleTax system at 1-800-829-4477.  You will need to provide your SSN, filing status and amount of refund from your tax return. 

What should I do to plan for next year? 

*     Now that your tax return is complete, be sure to keep a copy of it. 

*     If you had to pay more than you expected or received a large refund, you may want to complete a new Form W-4 withholding statement for your employer.  The Withholding Calculator on the IRS Web site simplifies this process. If your income is from self-employment or other sources without withholding, you may wish to recalculate your estimated taxes for the coming year.  (Incidentally, the first estimated tax payment for 2008 is due April 15.) 

*     You can avoid headaches at tax time by keeping track of your receipts and other records throughout the year. If you don't have a record keeping system, now is a good time to start one for tax year 2008.  It can be as simple as file folders or a shoebox.  Just put everything that relates to taxes in one place. However, the more organized your records are, the easier it will be to complete your tax return next year. There is no substitute for good records. A good record keeping system can help ensure that you don't miss out on any credits or deductions when you file your tax return. 

*     Tax records should usually be kept for at least three years. Records/documents relating to home purchase or sale, stock transactions, tax years where no return was filed or where a fraudulent return was filed, bad debts, and important assets should be kept longer.

Source: Internal Revenue Service