*= Please Note: The editors of the Leewood Times
are not tax professionals or accountants and this page is for
informational use only. Please refer to a tax professional for
any questions or help in filing your taxes.
Overview
The 2009 tax filing season is in full swing and
the IRS has announced a number of new steps to file your taxes,
help financially distressed taxpayers maximize their refunds,
and steps to speed refund payments.
This year, electronic filing options will speed
the payment of refunds to millions of taxpayers. Taxpayers who
e-file and choose direct deposit for their refunds, for example,
will get their refunds in as few as 10 days. That compares to
approximately six weeks for people who file a paper return and
get a traditional paper check.
On a wide range of situations, IRS employees have
flexibility to work with struggling taxpayers to assist them with
their situation. Depending on the circumstances, taxpayers in
hardship situations may be able to adjust payments for back taxes,
avoid defaulting on payment agreements or possibly defer collection
action.
This filing season, there are several steps taxpayers
can take to maximize their refunds and speed the delivery of money
from the IRS. Taxpayers should look into the numerous tax breaks
available and take every credit, deduction and exclusion for which
they qualify. People who had less income in 2008 could find they
qualify for credits for which they previously did not qualify.
And there are several new benefits this year
The IRS web site, IRS.gov,
has more information on these and other popular credits, such
as the child tax credit, the Earned Income Tax Credit and alternative
fuel vehicle credit.
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Six Steps for Preparing
Your Return
- Get your records together for income and expenses.
- Get the forms, schedules, and publications you need.
- Fill in your return.
- Check your return to make sure it is correct.
- Sign and date your return.
- Attach all required forms and schedules.
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Checklist: Final
Review Before You Mail Your Tax Forms
Once you've filled in your tax forms, make sure
you do a final review before you mail or e-mail them. Misprinted
or overlooked data on your forms can lead to refund delays or
imposition of interest and penalties.
Yes/No
____ Are all of your calculations correct?
____ Are all of the "B" copies of your W-2s attached?
____ Have you attached all of the forms and schedules that you
need to?
____ Are all of the social security numbers correct and legible?
____ Do the social security numbers match the names?
____ Is the return signed and dated by both you and your spouse?
____ Do all of the forms have the appropriate names and social
security numbers at the top of them?
____ Did you or your computer program leave anything blank that
needs to be filled in?
____ Did your computer program appropriately update your information?
____ Did you use the correct figure from the tax table?
____ Does your check have the same amount on it as the amount
due on your return?
____ Do you have the correct amount of postage on the envelope?
____ Is your return address complete?
____ Is your check made payable to the Internal Revenue Service,
as opposed to the IRS?
____ Does your check include your social security number, daytime
telephone number, tax form number, and tax year?
____ Are you sending your return to the correct address?
____ Did you make copies?
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Frequently Asked Questions
about Taxes From the IRS
Q: How long should I keep my tax papers?
A: At least three years, but six years is preferable. The
IRS has three years after you file a tax return to complete an
audit. The IRS can audit you for up to six years if it suspects
that you underreported your income by 25% or more. If the IRS
suspects fraud, there is no time limit for an audit, although
audits beyond six years are extremely rare.
Q: How long should I worry if I haven't filed tax
returns that I should have filed?
A: Probably six years. The government has six years from the
date the nonfiled return was due to criminally charge you with
failing to file. (There is no time limit, however, for assessing
civil penalties for not filing. If you didn't file for 1958, you
still have an obligation if you owed taxes for that year.) Not
until you actually file a return does the normal audit time limit
-- three years -- and collection time limit -- ten years -- start
to run.
Don't overworry about a nonfiled return due
more than six years ago if you haven't heard from the IRS. The
IRS usually doesn't go after nonfilers after six years. For more
information, see Tax Returns: If You Haven't Filed in a While.
Q: If I can't pay my taxes, should I file my return
anyway?
A: Yes. Filing saves you from the possibility of being criminally
charged or, more likely, from being hit with a fine for failing
to file or for filing late. Interest continues to build up until
you pay. Of course, filing without paying will bring the IRS collector
into your life, but she'll be friendlier if she doesn't have to
hunt you down. The sooner you start filing, the better.
Q: Can I get an extension to pay a tax without penalties
and interest?
A: Probably not. Although you can get extensions to file your
tax return, you still must pay by April 15 or the IRS can impose
a penalty and charge interest. Try pleading hardship on IRS Form
1127 to get up to six months extra to pay. But, the IRS may require
that you post a bond or mortgage, which is impractical for most
people. Few payment extensions are granted. Even then, only penalties,
not interest, stop accruing. Form 1127 works best in requesting
an extension to pay estate taxes. For more information, see Filing
and Paying Taxes Late.
Q: My state had an amnesty period for nonfilers.
Can I ever hope the IRS will have one?
A: Maybe -- the idea is frequently kicked around in Congress.
But the IRS has always opposed tax amnesty legislation, which
lets nonfilers come forward without being criminally prosecuted
or civilly fined. The IRS's reasoning is that after the amnesty
period expires, significant numbers of people won't file, expecting
another amnesty. Based on the success of various states trying,
the IRS may be wrong.
Q: Who has access to my IRS file?
A: Federal law makes IRS files private records. The law has
many exceptions, however. IRS files can be legally shared with
other federal and state agencies. (Most leakage comes from result
of sloppy state agencies that are granted access to IRS files.)
Furthermore, IRS employees have been caught snooping, and computer
hackers have broken into government databases. While violation
of the Privacy Act is a crime, rarely is anyone prosecuted for
it, though IRS personnel can be fired if caught.
Q: Is it true that the IRS pays rewards for turning
in tax cheaters?
A: Yes, but you don't get the reward until the IRS collects
from the cheater, which is far from a sure thing. The IRS pays
about 8% of the first $100,000 it collects and 1% of the balance.
Identities of informers are kept secret, but tax cheats usually
know who reported them -- mostly ex-spouses or disgruntled business
associates.
In a recent year, the IRS paid out a paltry
$1.5 million for tips, on $72 million collected. The IRS places
low priority on investigating tips and paying rewards. Typically,
you will never know what action, if any, is taken on your tip.
But if you want to try it, submit IRS Form 211.
Q: What should I do if I don't get my refund?
A: If you filed your tax return at least eight weeks ago,
call the IRS tax refund hotline at 800-829-4477, Monday - Friday,
7:00 a.m. to 11:30 p.m. Or, call the 24-hour assistance number
at 800-829-1040 and request assistance from the taxpayer advocate.
If you filed your return on or before April
15 and don't receive your refund until after May 31, the IRS must
pay you interest.
If you never get a refund, it may have been
intercepted to pay any of the following:
- state or federal taxes you owe
- a defaulted student, SBA, or other federal government loan
- delinquent child support
- a public benefit overpayment (such as HUD, VA, or Social Security).
- In these situations, you are supposed to be notified in writing,
but don't count on it.
Q: Can the IRS charge me interest if I was incorrectly
sent a refund and the IRS now wants it back?
A: It depends. The Internal Revenue Manual states that "taxpayers
should not be held liable for interest on ... erroneous refunds
if the IRS was clearly at fault ... and the taxpayer is cooperative
in repaying." But if you caused the erroneous refund and
now can't repay it, the IRS can and will charge interest.
How legitimate are the claims by "tax experts"
that you don't have to pay income taxes?
Not at all. These con artists can be convincing, but they are
not legit. Constitutional arguments against the tax laws are routinely
dismissed by courts, and their proponents are fined or jailed.
More sophisticated scams involve multiple family trusts, limited
partnerships, and credit cards issued by offshore banks. While
these schemes can confuse and slow down the IRS, they are bogus,
period.
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Helpful IRS links For
You to Use
who must file a tax return?
http://www.irs.gov/taxtopics/tc351.html
Do You Need to File a Federal Income Tax Return?
http://www.irs.gov/individuals/article/0,,id=96623,00.html
IRS e-file for Individuals
http://www.irs.gov/efile/article/0,,id=118508,00.html
Tax Tips for 2008
http://www.irs.gov/newsroom/content/0,,id=104608,00.html
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The AARP Tax-Aide Program
The AARP Tax-Aide Program is a volunteer-run, free
tax-preparation and assistance service offered to low- and middle-income
taxpayers with special attention to those age 60 and older. Our
volunteers are trained and IRS-certified to understand individual
federal-tax issues. Our volunteers provide tax assistance as a
public service and cannot guarantee the accuracy of the information
provided.
AARP Tax-Aide Returns to Mason Disrtict - If you
need help filing your tax returns, AARP will provide walk-in service
at the Mason District Government Center from Febraury 2nd to April
15th. Hours of Operation will be Mondays and Thursdays 1 - 8 pm;
Tuesdays Wednesdays and Fridays 9:30am to 1 pm. All returns are
filed Electronically. Addition to the documents usually needed
to file the 2008 return, such as the previous year's tax return
and photo ID and Social Security Card. Please remember to bring
your 2008 Economic Stimulus Payment Notice 1378.
For more information about AARP Tax-Aide, visit
www.aarp.org/taxaide,
or call 1-888-227-7669. The Mason District Governmental Center
is located at 6507 Columbia Pike, Annandale, VA
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agenda, but our helpful guides have neither. We hope that the
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