Only Three Days Left And Counting

Only Three Days Left And Counting

Texas CPAs Offer Timely Answers to Last-Minute Tax Questions


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Dallas, TX–(HISPANIC PR WIRE – US Newswire)–April 12, 2004–If you’re one of the thousands of Texans who wait until April 14th to complete their tax returns, the Texas Society of Certified Public Accountants (TSCPA) is ready to help you with the answers to five common last-minute tax questions.

In addition, Texas CPAs have compiled an online list of other frequently asked tax questions and their answers. Through this online resource, available in the “Business/Consumer” section of http://www.tscpa.org, taxpayers will find answers on everything from the earned income tax credit to claiming dependents to checking the status of their refunds.

1) I just completed my tax return but don’t have enough money to send to the IRS. Should I file for an extension?

An extension provides more time to file your tax return — not more time to pay your taxes. In fact, with an extension, the IRS expects you to estimate your tax bill and pay it by check, money order or credit card.

What if you don’t have enough money to pay the estimated taxes? As long as you submit your extension on time and make a good faith estimate of your tax liability, the IRS will not assess a late-filing penalty. However, they will charge you interest on the unpaid balance and assess a late-payment penalty of 1/2 of 1 percent of the unpaid tax per month up to a maximum of 25 percent.

2) How do I get an extension to file my tax return?

All you need to do is file Form 4868 to obtain an automatic four-month extension. This will eliminate any late-filing penalties, but you will still need to include any taxes you owe.

3) What documents should be included with my tax form?

Generally, the only forms that need to be attached are your W-2 and certain 1099 forms.

4) I found a mistake on one of my W-2s and haven’t received a corrected one yet. What should I do?

You have two choices. Either pay the amount of tax that is due and file for an extension or file your return and send an amended return later with an explanation.

5) I don’t want to have any errors on my tax return. What are some common mistakes?

— A missing or incorrect Social Security number is one of the most common errors taxpayers make. Be sure to list the correct Social Security number for yourself, your spouse, and any dependents.

— Double-check to be certain the amounts listed on all 1099 forms and W-2 statements match with those listed on your tax return.

— Use the correct filing status and tax tables when calculating your taxes.

— Finally, check your math. Simple addition and subtraction errors are very common on tax returns. Other common mistakes include transposing numbers and adding instead of subtracting and vice versa. Always double-check the numbers to ensure your accuracy.

About TSCPA

TSCPA (http://www.tscpa.org) is a nonprofit, voluntary, professional organization representing Texas CPAs. The society has 20 local chapters statewide and has 27,000 members, one of the largest in-state memberships of any state CPA society in the United States. TSCPA is committed to serving the public interest with programs that advance the highest standards of ethics and practice within the CPA profession.

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CONTACT:

Sarah Seals

972-687-8688 or 800-428-0272, ext. 688

Only Three Days Left And Counting