Tax Tips From The IRS As Filing Deadline Approaches

Can you believe it's already April?  And you know what that means; SPRING is here, well and of course tax deadline is approaching quickly!

Here are some tips from the IRS spokesperson, Gregg Semanick, as April 18th slowly creeps upon us:

• Don't miss the filing deadline, especially if you owe money.  EIther file your tax return, or request an extension by April 18 to avoid possible penalty.  Wondering how much a penalty could be?  Well if you owe $1,000 and file late, your penalty could be as much as $250; 25% of the unpaid balance.
• Keep in mind that an extension postpones filing, not paying.  The filing extension is generally accepted with or without payment as long as it is correctly completed and filed by April 18.  An extension gives you until October 17, 2011 to file your return but does not extend your time to pay taxes that you owe.  You can file for an extension online at no cost through www.IRS.gov.
• Pay as much as you can when you file.  Paying more now will help the amount of interest and late payment penalty owed be less.  Don't forget you can request an IRS payment plan for the remainder amount owed by visiting www.IRS.gov.
• Avoid common errors.  Almost everything is filed electronically now so the most common errors are data input mistakes.  If you make sure your Social Security Number and other information are entered correctly, the tax software will give you an error-free tax return.
• File your past-due returns to avoid losing refunds.  You have a three-year period to claim a tax refund.  If you have not filed your 2007 tax return yet, you must file it by April 18, 2011 to claim any refund for year 2007.  There is no penalty for filing a refund return late, but you will also have to catch up on filing for 2008 and 2009 or the IRS will hold your 2007 refund.
• Don't miss out on the worker's tax credit.  Taxpayers who worked any part of 2010 and whose household income was less than $48,362 may be eligible for the Earned Income Tax Credit (EITC).  This credit can be as much as $5,666 and can be refunded to you even if you paid little to nothing to the IRS.  Also be sure to see if you qualify for the Making Work Pay Tax Credit while you're at it.
• File for FREE online.  IRS Free File allows filers whose household income was $58,000 or less last year to use brand-name software at no cost.  If your income was above $58,000, use the Fillable Forms section of Free File.  Keep in mind E-filing is safe, fast and easy!  Not to mention it will provide you with a fast refund.
• Get your return prepared and e-filed free.  Take advantage of free tax preparation and e-filing at help sites staffed by IRS-trained volunteers.  Filers whose household income was $49,000 or less or who are age 60 or older are eligible for this free service.  Call the IRS Site Locater number, 1.800.906.9887, to find the site nearest you.
• Keep an eye on your refund status through the web.  Visit IRS.gov and use the "Where's My Regund?" tool.
• Avoid tax scams.  Even though the IRS encourages e-filing, e-payments and provides e-refunds, the IRS NEVER sends e-mails about your taxes.  E-mails that ask for your private information are usually phishing scams.  Guard your personal identity and remember, if something sounds too good to be true, it probably is!