Last-Minute Tax Tips

The tax-filing season is progressing smoothly as the April 18 filing deadline approaches, according to IRS spokesman Mark S. Green.

“Georgians are e-filing in record numbers this year, up 8.7 percent thus far. We have received over 2.6 million E-File returns out of the estimate 4.1 million tax returns," he said.

Green said the IRS expects 20 to 25 percent of the 4.1 million returns from Georgians to be filed during the last week of the filing season. In addition, the IRS estimates that more than 275,000 Georgians will request an extension this year.

If you haven't filed your taxes, you have today, the weekend and until midnight Monday to meet the deadline. Here are some last-minute tips from the IRS to help make the process easier for you:

• The IRS has $35 million in unclaimed refunds for Georgians who have not filed a 2007 tax return. To collect that money, you must file a return with the IRS no later than Monday.
• If you wish to amend your 2007 return, you also face a Monday deadline.
• Taxpayers who need extra time to file their federal returns this year can file Form 4868 to request an automatic extension through IRS Free File. The extension gives you an additional six months, until Oct. 17, to file the tax return. Taxpayers can file the request for extension with traditional Free File or Free File Fillable Forms.
• An extension of time to file is not an extension of time to pay. You need to estimate your tax liability and pay any balance due when you request the extension. Several payment options are available, including electronic funds withdrawal, credit card and check.
• If you are unable to pay the total balance due, you should pay as much as possible, then contact the IRS about an installment plan. Even if you cannot pay the balance due, it is important to either file a return or request an extension to avoid the failure-to-file penalty. 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. Paying as much as you can when you file your return will help reduce interest and penalty charges. The current interest rate is 4 percent.
• E-filing is the easiest way to file your taxes. It is free, fast, safe and accurate. You get confirmation that the IRS has received your return. And you get your refund in about two weeks if you have it directly deposited into your bank account.
• If you are filing a paper return, use the pre-printed label. It speeds up the processing of your return.
• Double-check the names and Social Security Numbers (SSNs) for yourself, your spouse and your dependents. Incorrect or missing SSNs may result in the disallowance of dependents, the child care credit or the Earned Income Tax Credit and could delay any refund.
• 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 return.
• Don't forget to sign the return. For a joint return, both spouses must sign.
• Have your refund deposited directly into your bank account. It's faster and safer than waiting for a paper check and is available whether you file a paper return or e-file.

If you owe money:

• Make checks payable to the "United States Treasury," and include your SSN, the tax year the payment is for (2010), and the type of tax (1040) in the memo section of the check.
• Complete and include Form 1040-V, Payment Voucher, when sending your payment and return to the IRS. This helps ensure that your payment is credited accurately.
• Or you can charge federal income taxes to an American Express, Discover, MasterCard or Visa account 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 website.  Phone numbers and directions are included in your tax package and are on the IRS website.