Top Tax Tips for Successful Filing
As the April 15-tax filing deadline is approaching, the Internal Revenue Service (IRS) has published its top tax tips for successful filing. The IRS suggests that taxpayers who file near the deadline may benefit from these steps.
The following are several steps that can help ensure a proper return and prompt refund:
- Prepare To File – Gather all your tax documents. These may include your IRS Form W-2, any Forms 1099 for payments or retirement plan distributions and other documents that reflect your income for the past year. Collect receipts for charitable deductions, Form 1098 for mortgage interest deductions and other documents to support your tax deductions. You should have documentation from your employer if you are claiming the new deductions for tip income or overtime. Having good records help support your claimed income and reported deductions.
- File Electronically – Most taxpayers benefit from filing an electronic tax return. If you use tax software, it will minimize mathematical errors. The tax software will ensure all income, deductions and credits are correctly reported. Compared with paper returns, eFiling is faster and more accurate. In addition, there is a potential filing issue with paper returns. The U.S. Postal Service affirmed that postmarks may not be applied on the same day they are deposited in a mailbox. Thus, if you file a paper return, you should go to a post office during business hours and obtain a manual postmark. However, filing an electronic return avoids this problem.
- Make a Tax Payment – The tax amount is due by the tax filing deadline. If you cannot make a full payment, you should still pay as much as you can. By paying part of your tax amount, you will reduce penalties and interest. The majority of taxpayers will file electronically and have any amounts due paid by electronic fund transfer directly from their bank account. There are other electronic payment options available on IRS.gov.
- Payment Plan, If Needed – The IRS offers eligible taxpayers the option of payment plans. If you think you qualify for this option, contact the IRS to request an installment agreement. In the case of financial adversity, the IRS may approve a payment schedule that is suitable for your financial circumstances. By setting up a payment plan, you can reduce future penalties and interest.
- Respond to IRS Notices – If there is an issue with your return, the IRS may send you a letter or notice. The notice may ask for additional information or request an additional payment. You should respond promptly to the notice. If you owe additional tax, there are procedures listed in the letter to discuss or contest the payment with the IRS.
- Use Online Tools – Taxpayers have many helpful tools available. An IRS Individual Online Account enables you to review your tax balance or make payments. If you wish to check your refund status, the "Where’s My Refund?" tool is available on IRS.gov. You may use Direct Pay for electronic payments. There is also an IRS Document Upload Tool that will enable you to upload information requested by the IRS.