Tax day… can you breathe a sigh of relief?
For most Americans, April 15th allows us to relax knowing our tax obligation is taken care of for yet another year. The deadline to file taxes is here and we can collectively breathe a sigh of relief and feel we are ‘done’ for another year, but is that really the case?
As you well know, taxpayers must file, pay their taxes (if you owe) and have the envelope postmarked by the April 15th deadline. You can file for an extension, as long as you do it by the April 15th deadline, but did you know that an extension to file does not mean an extension to pay your taxes? Many Americans are unaware of this fact and it could cost them in penalties and interest.
Other things you may not know… if you do not file your taxes this year, you will miss out on receiving your rebate stimulus check. Even if you do not owe taxes, you must file in order to receive your rebate check. There are special instructions for some filers, so it is best to visit the IRS website (click here) and follow the link on the home page to the informational section on the stimulus rebate.
Also, did you know audits are on the increase? The number of individual returns audited in 2007 increased 7% over 2006, while audits of business returns increased 14%. The IRS is increasingly auditing returns, so be aware of this as you finalize your returns. Take extra care with itemized deductions and save all receipts, mileage logs or other documentation that will help you prove these deductions, should the need arise.
Lastly, if you are behind and owe back taxes, there is never a better time than the present to ‘get right’ with the IRS. If you owe more than you pay, the IRS has programs that may be able to help you. Whether you can afford to pay monthly payments or have suffered a loss of income and cannot currently pay, there are programs available that might help. Visit our website at www.jkharris.com for more information on some of the programs available to help you get rid of the burden to back tax debt.
Remember, you can breathe easy on April 15th, as long as you stay current with the IRS.
