If you're reading this, something about your tax situation has you worried. That's fair — the IRS is intimidating until you know how the rules actually work. I'm Darrin Mish, a Tampa tax attorney. I've handled cases like yours for 32 years. Let me walk you through it.
Time flies. It’s now about a month to the tax filing deadline. This year, due to Emancipation Day on April 16 in D.C., the tax deadline has been extended by two days to April 17. Click here to read or watch more IRS Help resources. So, if you have not submitted your tax returns, here are some things you should do:
1. Do not put it off
Procrastination is a thief of time. The longer you put off sending in your tax return, the closer the deadline nears. And when you fill in your tax forms at the last minute, you are more likely to make mistakes that might cost you money.
2. Go digital
Last year more than 70% of taxpayers filed their tax returns electronically. The IRS is encouraging e-filing of tax returns. The IRS offers “Free File” options that are free to those who earn below $57,000. On the other hand, if you earn a higher income and are comfortable preparing your own tax return, you can use the Free File Fillable Forms, which are electronic versions of IRS paper forms.
3. Obtain an extension
If you need more time filing your tax returns, you can generally obtain an automatic 6 month extension simply by writing in to the IRS. You need to file Form 4868 (Application for Automatic Extension of Time to File US Individual Income Tax Return). To download a copy online, go to www.irs.gov. To get a copy by mail, call 800-TAX-FORM (800-829-3676). It will take at least 10 days to get forms through the mail. However, an extension of time in filing does not mean an extension of time in paying. You still have to make payment of at least 90% of your estimated tax bill by the deadline.
4. Pay by installments
If making a lump sum payment of your taxes is too much for you, you can pay by installments. The IRS allows this arrangement but will charge interest on your installments. However, this will help you avoid charges for non-payment.
5. Get help
If you are not familiar with how to file your tax returns, you can get free help at various community sites like churches, libraries and other centers that offer free tax-filing help for low-income taxpayers and seniors. Many of these Volunteer Income Tax Assistance (VITA) centers even cater to foreign languages such as Russian, Chinese and Vietnamese. To find a VITA center near you, go to www.irs.gov or call (800) 906-9887.
6. Do not get scammed
Every year at tax season, lots of scams emerge that try to siphon your money away. Usually, scams take place online in the form of fake emails supposedly from the IRS soliciting your personal details like credit card number, bank account number or Social Security number. The IRS never sends unsolicited emails. So if you receive any suspicious email purportedly from the IRS, you should forward it to [email protected] and then delete the email and all its attachments.
Another way scammers take advantage of taxpayers is by promising larger refunds than what you can legitimately receive or refunds that are higher than other tax preparers can obtain for you. You should not hire any tax preparer who bases his or her fees on the amount of your refund.
7. Choose direct deposit
If you are expecting a refund, choose the option of receiving it through direct deposit into your bank account rather than a paper check. This helps speed up the process and ensures your refund is safe.