Amending Your Tax Return

Amending Your Tax Return

IRS Tax Tip 2007-71 Oops! You’ve discovered an error after your tax return has been filed. What should you do? You may need to amend your return. The IRS usually corrects math errors or requests missing forms -- such as W-2s or schedules. In these instances, do not amend your return. However, you should file an amended return if any of the following were reported incorrectly: Your filing status Your total income Your deductions or credits Use Form 1040X, Amended U.S. Individual Income Tax Return, to correct a previously filed Form 1040, 1040A, 1040EZ or electronically-filed return. Be sure to enter the year of the return you are amending at the top of Form 1040X. If you are amending more than one tax return, prepare a 1040X for each return and mail them in separate envelopes to the IRS processing center for the area in which you live. The 1040X instructions list the addresses for the centers. The Form 1040X has three columns. Column A is used to show original or adjusted figures from the original return. Column C is used to show the corrected figures. The difference between the figures in Columns A and C is shown in Column B. There is an area on the back of the form where you explain the specific changes being made on the return and the reason for each change. If the changes involve another schedule or form, attach it to the 1040X. For example, if you are filing a 1040X because you have a qualifying child and now want to claim the Earned Income Credit, you must attach a Form 1040 Schedule EIC to show the qualifying person's name, year of birth and Social Security number. If you are filing to claim an additional refund, wait until you have received your original refund before filing Form 1040X. You may cash that check while waiting for any additional refund. If you owe additional tax for 2005, you should file Form 1040X and pay the tax by the April due date to avoid any penalty and interest. Generally, to claim a refund, you must file Form 1040X within three years from the date you filed your original return or within two years from the date you paid the tax, whichever is later. How to amend your return if you failed to request the telephone excise tax refund: Eligible taxpayers who did not take the telephone excise tax credit when filing their regular income tax returns must request the refund by filing Form 1040X. The telephone excise credit should be entered on line 15 of the 1040X. Taxpayers should use the most recent version of 1040X (revised 2/2007) to include this credit. Tax Tips for 2007. Links: Frequently Asked Questions: Amended Returns & Form 1040X Form 1040X, Amended U.S. Individual Income Tax Return (PDF 110K) Form 1040X Instructions (PDF 45K) Tax Topic 308 — Amended Returns

How Long Should It Take To Receive Your Tax Refund?

How Long Should It Take To Receive Your Tax Refund?

IRS Tax Tip 2007-70 Are you expecting a tax refund from the Internal Revenue Service this year? If you file a complete and accurate paper tax return, your refund should be issued about six to eight weeks after the IRS receives your return. If you file your return electronically, your refund is issued in about half that time — even faster if you choose direct deposit. You can check on the status of your refund 72 hours after you e-filed your return or four weeks after mailing your return. There are several ways to check the status of your refund. To use these applications, you will need your Social Security number, filing status and the exact whole dollar amount of your refund. Where's My Refund: The fastest, easiest way to find out about your current year refund is access IRS.gov and click on the “Where’s My Refund” link available from the home page Refund Hotline: Call the IRS Refund Hotline at 800-829–1954 TeleTax: Call IRS TeleTax System at 800-829-4477. If you do not get a date for your refund, wait until the next week before calling back. In some circumstances, you may not receive your refund as quickly as you expected. Refund delays can be caused by a variety of reasons. For example, a name and Social Security number listed on the tax return may not match the IRS records. You may have failed to sign the return or to include a necessary attachment, such as Form W-2, Wage and Tax Statement. Or you may have made math errors that require extra time for the IRS to correct. Tax Tips for 2007. Links: Where’s My Refund? Form 3911, Taxpayer Statement Regarding Refund (PDF 62K) Tax Topic 152 — Refunds Frequently Asked Questions

Need More Time to File?

Need More Time to File?

IRS Tax Tip 2007-69 If you can't meet the April filing deadline to file your tax return, you can get an automatic six month extension of time to file from the IRS. Here are some things to remember about filing extensions: • File Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, with the IRS by the April deadline, or make an extension-related electronic payment. • The extension will give you extra time to get your paperwork to the IRS, but it does not extend the time you have to pay any tax due. • You will owe interest on any amounts not paid by the April deadline, plus a late payment penalty if you have paid less than 90 percent of your total tax by that date. • You can e-file an extension request using tax preparation software on your own computer or by going to a tax preparer that has the software. The IRS will acknowledge receipt of the extension request if you file by computer. • You can use Free File to file for an extension. Many private-sector companies in the IRS Free File Alliance offer extensions for no charge. You can access Free File via the IRS Web site at IRS.gov. Taxpayers with adjusted gross incomes of $52,000 or less may file their 2006 Federal Income Tax Returns electronically through Free File. If you ask for an extension via computer, you can also choose to pay any expected balance due by authorizing an electronic funds withdrawal from a checking or savings account. You will need the appropriate bank routing and account numbers and must also have available the adjusted gross income from your 2006 federal income tax return to verify your identity. For information on these and other methods of payment, call 800-TAX-1040 (800-829-1040). If your return is completed but you are unable to pay the tax due, do not request an extension. File your return on time and pay as much as you can. The IRS will send you a bill or notice for the balance due. To apply online for a payment agreement, go to IRS.gov, use the pull-down menu under “I need to …” and select “Set Up a Payment Plan.” To obtain a copy of Form 4868 or other forms and publications use Efile tax preparation software, download them from IRS.gov or visit your local IRS office. Note that forms and publications can be ordered by calling 800-TAX-Form (800-829-3676). However, telephone requests normally take 10 days to fill and may not arrive before the tax deadline of April 17. Links: Form 4868, Application for Extension of Time to File U.S. Individual Income Tax Return (PDF 50K) Form 9465, Installment Agreement Request (PDF 100K) Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad (PDF 348K) Publication 3, Armed Forces' Tax Guide (PDF 206K) Official Payments Corporation Link2 Gov Corporation

Payment Options

Payment Options

IRS Tax Tip 2007-68 If you cannot pay the full amount of taxes you owe by the April deadline, you should still file your return by the deadline and pay as much as you can to avoid penalties and interest. There are also alternative payment options to consider: • Pay by Credit Card You can charge your taxes on your American Express, MasterCard, Visa or Discover cards. To pay by credit card, contact one of the service providers at its telephone number or Web site listed below and follow the instructions. The service providers charge a convenience fee based on the amount you are paying. Do not add the convenience fee to your tax payment. o Link2Gov Corporation: 888-PAY-1040 (888-729-1040), www.pay1040.com o Official Payments Corporation: 800-2PAY-TAX (800-272-9829), www.officialpayments.com • Extension of Time to Pay Based on the circumstances, a taxpayer could qualify for an extension of time to pay. The IRS is willing to allow extensions of time to pay in order to assist in tax debt repayment. A taxpayer can request an extension from 30 - 120 days depending on the specific situation. Taxpayers qualifying for an extension from 30 -120 days generally will pay less in penalties and interest than if the debt were repaid through an installment agreement. • Installment Agreement The IRS may allow you to pay any remaining balance in monthly installments through an installment agreement. You can apply for an IRS installment agreement using our new Web-based Online Payment Agreement application on IRS.gov. This new Web-based application allows eligible taxpayers or their authorized representatives to self-qualify, apply for, and receive immediate notification of approval. Another alternative is to attach a Form 9465, Installment Agreement Request, to the front of your tax return. The IRS charges a $105 fee for setting up an installment agreement. The fee is only $52 if you pay via direct debit. If your income is below a certain level (see Form 13844), you may qualify for a $43 fee. You will also be required to pay interest plus a late payment penalty on the unpaid taxes for each month or part of a month, after the due date that the tax is not paid. If you do not file your return by the due date -- including extensions -- you may have to pay a failure-to-file penalty. For more information about filing and paying your taxes, visit the IRS Web site at IRS.gov and choose “1040 Central” or refer to the Form 1040 Instructions or IRS Publication 17, Your Federal Income Tax. You can download forms and publications at IRS.gov or request a free copy by calling toll free 800-TAX-FORM (800-829-3676). Links: Electronic Payment Options www.officialpayments.com www.pay1040.com Form 9465, Installment Agreement Request (PDF 100K) Installment payment process Partial Pay Installment Agreements Is an Offer in Compromise Right for You? Publication 17, Your Federal Income Tax (PDF 2,072K)

Making Tax Payments Correctly

Making Tax Payments Correctly

IRS Tax Tip 2007-67 If you have a balance due when filing your 2006 income tax return, remember to make sure your tax payment check or money order is payable to the "United States Treasury." Complete and include Form 1040-V, Payment Voucher, when sending your payment and tax return to the IRS. This will help the IRS process your payment more accurately and efficiently. Whether you are filing your current year’s return (2006), a prior year’s return or an amended return, always provide your correct name, address, the Social Security number that is listed first on the tax form, daytime telephone number, tax year and form number on the front of your check or money order. Enclose your payment with your return, but do not staple it to the form. Do not mail cash with your tax return. If you are paying by electronic debit of your bank account, you will need to know your account number and your financial institution’s routing number. You can check with your financial institution to make sure that an electronic withdrawal is allowed and to get the correct routing and account numbers. If you are paying by credit card, call or visit the Web site of either service provider listed below and follow the instructions: • Link2Gov Corporation: 888-PAY-1040 (888-729-1040), pay1040.com. • Official Payments Corporation: 800-2PAY-TAX (800-272-9829), officialpayments.com. The service providers charge a convenience fee which may vary between the providers. You will be told what the fee is during the transaction and you will have the option to either continue or cancel the transaction. You can also find out what the fee will be by calling the provider’s automated customer service number or visiting the provider’s website. You will be given a confirmation number for your payment at the end of the call. For more information, call 800-829-4477 to check out TeleTax Topic 158, "Ensuring Proper Credit of Payments.” This information is also contained in Publication 17, Your Federal Income Tax, available at IRS.gov, as are Forms 1040-V and 1040-ES. Links: Electronic Payment Options www.pay1040.com www.officialpayments.com Form 1040-V, Payment Voucher (PDF 47K) Form 1040-ES, Estimated Tax for Individuals (PDF 102K) Publication 17, Your Federal Income Tax (PDF 2,072K)

Last Minute Payment and Filing Tips

Last Minute Payment and Filing Tips

IRS Tax Tip 2007-66 If you’re trying to beat the tax deadline, there are several options for last-minute help: • Receive a six-month extension of time to file using Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. • Payment options are available to taxpayers having trouble paying their tax bill. • Download forms and publications at IRS.gov. The filing extension will give you extra time to get the paperwork to the IRS, but it does not extend the time you have to pay any tax due. You have to make an accurate estimate of any tax due and pay at least 90 percent when you request an extension. You will owe interest on any amounts not paid by the April deadline. You can also e-file an extension request using tax preparation software on your own computer or by going to a tax preparer. If your return is completed but you are unable to pay the tax due, do not request an extension. File your return on time and pay as much as you can. The IRS will send you a bill or notice for the balance due and will charge interest and penalties only on the unpaid balance. If you cannot pay the full amount due with your return, you can ask to make monthly installment payments for the full or a partial amount. You can apply for an IRS installment agreement using our new Web-based Online Payment Agreement application on IRS.gov. This new Web-based application allows eligible taxpayers or their authorized representatives to self-qualify, apply for, and receive immediate notification of approval. You can also request an installment agreement by submitting a completed Form 9465, Installment Agreement Request, either when you file the return or when you later get a bill from the IRS. For more information regarding extensions of time to file or installment agreements, including options for requesting an installment agreement online, visit the IRS Web site at IRS.gov and click on 1040 Central. Links: Form 4868, Application for Extension of Time to File U.S. Individual Income Tax Return (PDF 76K) Form 9465, Installment Agreement Request (PDF 100K)

Filing Your Federal Tax Return

Filing Your Federal Tax Return

IRS Tax Tip 2007-65 Once you complete your 2006 federal tax return, you can either file it electronically or mail it to the IRS. More than one-half of all taxpayers file electronically because they know that IRS e-file provides a fast, easy, accurate, secure and convenient way to file. Taxpayers who file electronically receive an acknowledgement that their return has been received and accepted for processing. Electronic options include: • Computer filing using an authorized IRS e-file tax professional • Using your personal computer to file • Free File is available at IRS.gov for many taxpayers as an option for filing their returns with no charge If you choose to mail your return, you will find directions on where to send it on the back cover of your instruction booklet. When mailing your return, whether enclosing a payment or not, use the envelope and the appropriate mailing label that came with your tax instruction booklet. If you moved during the year, check the tax package to find the mailing address of the appropriate IRS Center. The appropriate address depends on where you live and whether or not you are enclosing a check or money order. Checks or money orders should be payable to the “United States Treasury.” For more information on where to file your tax return, check out the 1040 Central page on the IRS Web site at IRS.gov. Use the 1040 Central page as your one-stop guide to filing your 2006 federal income tax return. Links: 1040 Central Where to File E-file for Individual Taxpayers