Tackling Your Taxes

Get organized. You can significantly reduce the amount of time that it takes to prepare your tax return if all of your financial records are in one place. You will want to make sure that you have all your income and deduction documents handy and a copy of last year's tax returns available for reference. TURBOTAX is a popular TAXSOFTWARE package

Don't procrastinate. If you have lost paperwork or if some information is missing, waiting to the last minute may prevent you from obtaining all the forms and documents that you need to file your tax return on time. Be on guard for tax scams. If the tax deductions promised sound too good to be true, they probably are.

Scam artists make money by making you believe that you don't have to pay taxes. If you don't pay the correct amount of taxes owed, you will be the one responsible for paying any sort of penalty incurred.

Most individual taxpayers can pay the taxes they owe electronically if they file using the telephone or using a computer. Electronic payment options give taxpayers an alternative to paying taxes by check or money order. Payments can be made 24 hours a day, 7 days a week.

If you can't immediately pay your taxes, one option is to set up an installment agreement. You can do this by filing a Form 9465 or calling 1-800-829-1040. This installment option will allow you to pay what you owe in monthly payments rather than one lump sum. Note that if you must make payments, interest and penalties will apply. If that does not fit your particular financial situation, you may have a special case and be eligible for the new Tax Payer Advocate Service.

If the clock is about to run out, request an extension of time to file. You can get an automatic four-month extension of time to file, to August 15. Call 1-888-796-1074, e-file or mail a Form 4868 to the IRS. Note that the extension does not give you more time to pay any taxes due. You will owe interest on any amount not paid by the April deadline, plus a late payment penalty.