Preparing your income tax return doesn’t have to stress you out. There are several things you can do to ease the pain when it’s time to file your tax return. The IRS offers taxpayers several tips to help you complete the task of preparing your income tax return.

1. Don’t wait until the last minute
   Don’t wait until the last day to file taxes. Rushing to file by the tax due date may cost you money. It increases the risk of making errors and it may cause you to overlook potential tax savings. If you don’t know how to do your taxes, seek out tax return help from various sources that are available. You can seek tax help from your accountant, tax preparer, tax attorney, tax software or even a knowledgeable friend. You can even visit the IRS website for tax help and to get answers to your tax questions.
2. Use Free File
   Qualifying taxpayers can take advantage of the income tax services provided by the IRS. Free File allows you the ability to file your income tax using online tax software for free. Everyone can find an option to prepare their tax return and e-file it for free. If you made $57,000 or less, you qualify for free tax software. If you made more than $57,000 and know how to prepare your tax return, there’s Free File Fillable Forms, the electronic versions of IRS paper forms.
3. Try IRS e-file.
   IRS e-file is quickly becoming the preferred means for filing income tax returns. For the 2010 tax year almost 80 million people used e-file to file their income tax return. If you owe taxes, you can file immediately and pay later (by the April 17 tax due date). E-file offers you the option of receiving your tax refund via direct deposit. It’s the quicker and fastest way to get your tax refund, sometimes in as little at 10 days.
4. Don’t panic if you can’t pay.
   If you can’t pay the full amount of taxes you owe by the mid-April deadline, you should still file your return by the deadline and pay as much as you can to avoid penalties and interest. A majority of taxpayers eligible for an Installment Agreement can apply using the web-based Online Payment Agreement application available at the IRS website. www.irs.gov. To find out more about this simple and convenient process, type “Online Payment Agreement” in the search box at www.irs.gov.
5. Request an extension of time to file – but pay on time.
   If you’re not finished preparing your tax return by the tax due date, you can get an automatic six-month extension through Oct. 15. In order to get a tax extension it must be filed or postmarked by the April 17 deadline. But remember, a tax extension does not give you more time to pay any taxes due. If you have not paid at least 90 percent of the total tax due by the April deadline you may also be subject to an estimated tax penalty. You can obtain an extension through Free File at www.irs.gov/freefile or by calling 800-TAX-FORM (800-829-3676) to have a paper form mailed to you. Allow at least 10 days for mailed forms and publications.

Take advantage of these tips to reduce your tax season stress and remember the IRS is always available to provide tax help, answer your tax questions and guide you in your quest for free tax software.

Being selected for an IRS audit can be the most stressful experience. The key to reduce your anxiety is to get professional help in the form of a tax attorney. Having professional representation will help relieve the questions and what-if scenarios that go through your brain.

In my previous post about IRS Audit Facts, I discussed how the IRS will contact you, what happens when you file an amended tax return while you’re being audited, and the reasons why your tax return was selected for audit.

In IRS Audit Facts: Part II we will expand on the IRS audit facts. We will discuss how long you should keep your tax returns, what happens when the tax audit is concluded, how far can the IRS go to audit your return, and what to do if you’re not ready for your audit appointment.

The IRS can audit tax returns filed within the last three years. If substantial errors are discovered, the IRS has the discretion to go back further. In almost all cases, the IRS will never go back more than six years. This answers the next question you might ask, how long should you keep copies of your tax returns? Optimally, you should keep copies forever. At the very minimum, six years of tax return copies will suffice.

When the IRS has been completed by the examining auditor it will be reviewed by the case manager. It is IRS policy that all audits are reviewed by managers. If errors are found during the review, the auditor will contact you and advise you what the correction is and what the implications of the error are.

What happens if you’re not ready for your scheduled appointment? First and foremost, don’t panic. Contact your IRS auditor at the number provided on the IRS notification letter. Explain the situation, and let them know what information, if any, is currently not available. In some cases it may be possible for the IRS to proceed. In any case, the IRS auditor will try to work with you to set up another audit appointment.

If there were only one audit fact that I could stress, it would be to hire a tax attorney or other tax professional to represent you. That’s a fact!

source: irs.gov

No taxpayer ever wants to be selected for a tax audit. But if you are selected for an audit there are some facts you should know it.  Here are some true facts about the IRS audit process, directly from the source.

First and foremost, the IRS will never contact you, your tax preparer or your tax attorney via e-mail about an impending tax audit. IRS rules require they contact you and your tax preparer via phone or U.S. mail if you are selected for an IRS audit.

Let’s say that your tax attorney or tax preparer recommended you file an amended tax return. That filing will not affect the audit selection process of the original tax return. But be aware, the amended tax return also goes through the normal tax return screening process and could be selected for audit.

I’m sure the biggest fact you want to know about is how the IRS tax audit selection process works.  The first step in the audit screening process is they review your data against normal returns. The IRS uses statistically tax return models that screen out returns that stand out against the “norms”. These returns are selected as part of the National Research Program which the IRS conducts to update return selection information.

Once the tax return has been identified as a possible audit candidate, it is reviewed by an experienced IRS auditor.  The auditor can accept the file as is, or based on his audit experience, note the questionable item and forward the tax return for assignment to an examining group.

The hard cold fact about the tax audit selection process, is it comes down to a “human” (IRS auditor) decision.

If you are selected for a tax audit by mail or in-person, it is recommended you contact your tax preparer and/or a tax attorney for representation.

For more IRS audit facts, visit the IRS website.