The month of April brings warm weather, major league baseball and the deadline for filing your 2010 income tax return? If you haven’t prepared your income tax, you still have options for filing before the April 15 tax deadline. Here are some of the options for filing your tax return.

The quickest and most efficient way to get your tax return in on time is to sign up for one of the many online tax services. They provide the software so you can file your income tax online. Most online tax services offer the service for free or at a steep discount. Taxpayers can also find tax coupons online by using searching the web using the keyword phrase “tax coupons”.

Another option is to contact the IRS. The IRS provides a free income tax preparation program for individuals earning less than $49,000 who cannot prepare their own federal income tax returns. The IRS Volunteer Income Tax Assistance (VITA) will help taxpayers prepare their income tax and help answer tax questions about special credits, such as Earned Income Tax Credit, Child Tax Credit, and Credit for the Disabled. The program offers free electronic tax filing (e-filing) at most of it’s sites. For more information on TCE, call 1-800-829-1040 or log onto www.irs.gov

Individuals who have tax problems or complicated tax situations should contact an income tax lawyer or tax consultant immediately. Tax lawyers can answer your income tax questions and act as your tax representative to the IRS. If you have serious tax problems, the price for a consultation with a tax attorney is worth it.

If you will not meet the tax deadline, you can file for a tax extension. Taxpayers have 3 choices for filing the income tax extension form (Form 4868, Application For Automatic Extension of Time To File U.S. Individual Tax Return); electronically, by paying part of your tax due with a credit card through an outside service provider listed on the form, or by mail.

If you file your Form 4868 electronically you will receive an acknowledgment or confirmation number and you do not need to mail in Form 4868. If you need to pay additional taxes, you may do so through the outside service provider or through e-file. Be advised that each tax service provider will charge a convenience fee based on the amount of the tax payment.

These are the most common options available for filing your tax return. For more information about income tax or filing an income tax extension visit the IRS website.

source: irs.gov

Tax Day, April 15, is quickly approaching. It is when federal income tax returns are due and the last day U.S. citizens and resident aliens can mail their returns without incurring penalties. Even with the tax deadline just days away, individuals having difficulty preparing their income tax return can still get free tax help.

The IRS Volunteer Income Tax Assistance (VITA) and the Tax Counseling for the Elderly (TCE) Programs offers free tax help for taxpayers. The programs can help taxpayers by answering tax questions, offering tax advice, discussing tax problems and providing free tax return preparation assistance. Most VITA sites also offer free electronic filing (e-filing)

To take advantage of the VITA program, individuals must earn less than $49,000 and cannot prepare their own tax returns.

The Tax Counseling for the Elderly Program provides free tax help to people 60 and older. TCE is run by trained volunteers who provide free income tax counseling, answer income tax questions and help the elderly with tax problems.

Individuals in the military can also take advantage of the Volunteer Income Tax Assistance (VITA) Program through the Armed Forces Tax Council (AFTC). The AFTC consists of the tax program coordinators in all branches of the military, including the Coast Guard.

Members of the military and their families can get help with free tax preparation, having their military specific tax questions answered and consultation on any tax problem they may have.

When visiting the VITA/TCE sites don’t forget to bring the following:

• Proof of identification (Social Security Cards for you, your spouse and dependents)
• Wage and earning statement(s) Form W-2, W-2G, 1099-R, from all employers
• Interest and dividend statements from banks (Forms 1099)
• Bank routing numbers and account numbers for Direct Deposit
• Total paid for daycare provider and the daycare provider’s tax identifying number
• A copy of last year’s federal and state returns if available (if available)
• To file taxes electronically on a married-filing-joint tax return, both spouses must be present to sign the required form

For more information on TCE, call 1-800-829-1040 or log onto www.irs.gov

In this economic climate it makes sense to take advantage of the free tax help provided by the IRS.

source: irs.gov

What should you do if you made a mistake on your federal tax return that you’ve already filed? Well, it depends on the type of mistake you made.

If you made a mathematical error why calculating your federal income tax, chances are it will be caught by the IRS processing of your tax return.

If your mistake was that you failed to include the required Income Tax Schedule(s), the IRS will contact you to supply the missing information.

If the mistake on your federal tax return was that you did not report all your income or did not claim a credit, you should file an amended or corrected return using Form 1040X, Amended U.S. Individual Income Tax Return.

When you file your amended income tax return don’t forget to Include copies of any tax schedules that have been changed and make sure to add any Form W-2 you did not include.

If you are claiming a refund on the Amended Income Tax Return, it must be received within 3 years after the date you filed your original income tax return or within two years after the date you paid the tax, whichever is later.

It will take the IRS 8 - 12 weeks to process your amended income tax return.

If you made a mistake on your federal tax return you already filed and the IRS contacts you, make sure to respond in a timely manner.

source: www.irs.gov

Do you want to do some undercover work for the IRS? The IRS is encouraging you to report promoters of off-shore tax avoidance schemes. Whistle-blowers who provide allegations of fraud to the IRS may be eligible for a reward.

With that said, the IRS is reminding United States citizens and resident aliens that income received from foreign sources must be reported on your Federal tax return. Lately there has been interest in of IRS in taxpayers with accounts in Liechtenstein. The interest of the IRS extends beyond accounts in Liechtenstein to accounts anywhere in the world. So make sure to report your worldwide income on your U.S. tax return.

U.S. citizens and residents alient must report all income whether or not you receive a W-2 Wage and Tax Statement, a Form 1099 or foreign equivalents. This is true whether you reside inside or outside the United States. This applies to earned income (such as wages and tips) as well as unearned income (such as interest, dividends, capital gains, pensions, rents and royalties).

If you reside outside the US, you may be able to exclude part or all of your foreign source income. For details, see Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad).

Hiding Income Offshore
Not reporting income from foreign sources may be a crime. The IRS and its international partners are pursuing those who hide income or assets offshore to evade taxes. Specially trained IRS examiners focus on aggressive international tax planning, including the abusive use of entities and structures established in foreign jurisdictions. The goal is to ensure U.S. citizens and residents are accurately reporting their income and paying the correct tax.

Foreign Financial Accounts
In addition to reporting your worldwide income, you must also report on your U.S. tax return whether you have any foreign bank or investment accounts. The Bank Secrecy Act requires you to file a Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), if:

• You have financial interest in, signature authority, or other authority over one or more accounts in a foreign country, and
• The aggregate value of all foreign financial accounts exceeds $10,000 at any time during the calendar year.

Consequences for Evading Taxes on Foreign Source Income
You will face serious consequences if the IRS finds you have unreported income or undisclosed foreign financial accounts. These consequences can include not only the additional taxes, but also substantial penalties, interest, fines and even imprisonment.

If you have a tax question, check the information on www.irs.gov or call 1-800-829-1040

source: www.irs.gov