It looks like we’ll be getting an extra two days to file our taxes this year, since the 2012 tax filing deadline will be April 17th. That’s because April 15 falls on a Sunday, and Emancipation Day, a holiday observed in the District of Columbia, falls on Monday, April 16. According to federal law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do, so everyone will have those two extra days to file.

Taxpayers who are will be requesting a tax filing extension will have until October 15 to file their 2012 tax returns.

For those who are going to use e-file and Free File, the IRS will begin accepting e-file and Free File returns on Jan. 17, 2012. According to the IRS, more details about e-file and Free File will be announced later this month. IRS Free File provides options for free brand-name tax software or online fillable forms plus free electronic filing. Everyone can use Free File to prepare a federal tax return. Taxpayers who make $57,000 or less are able to choose from approximately 20 commercial software providers. There’s no income limit for Free File Fillable Forms, the electronic version of IRS paper forms, which also includes free e-filing.

More than 144 million individual tax returns are anticipated by the IRS this year.

If you have any questions about filing your taxes, consult the IRS website (www.irs.gov) or contact a tax professional.

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Even though your income tax return is not due until April, important tax documents will start arriving in your mailbox. Make this your best tax filing year ever by being organized and getting an early start.

Here are some tips to make the tax-filing process as smooth as possible.

1. Put your records together in one place. Gather up your receipts, canceled checks and other documents that support income or deductions you’re claiming on your return.

2. Watch for your W-2s and 1099s in the mail and put them with your receipts and other supporting documents.

3. Check out Free File. If you made $57,000 or less last year, you qualify to use free tax software. Visit www.irs.gov/freefile to review your options.

4. Plan to use IRS e-file. If you are getting a refund, you’ll most likely receive your refund by direct deposit within 14 days if you e-file. E-file is safe and easy and is now the most common way to file a tax return.

5. Choose direct deposit. When you choose direct deposit, especially when you pair it with e-file, you’ll receive your refund in the fastest possible time. Plus, there’s no chance of a check being lost or stolen. Last year, thousands of refund checks were lost or stolen.

6. Read the Tax Guide. Everything you ever wanted to know about filing your 2011 taxes is in the booklet here: http://www.irs.gov/pub/irs-pdf/p17.pdf

7. Visit the IRS website. www.irs.gov contains forms, publications, tips, videos and FAQs.

8. Consider using a tax professional. Although you will be charged a fee to use their services, qualified tax professionals will ensure that your returns are accurate and that all options for tax deductions and tax credits have been explored.

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No, that’s not a mistake. The IRS announced on November 30, 2011, that it wants to return $153 million in undelivered tax refund checks. Over 99,000 refund checks were not delivered because of mailing address errors, and the average undelivered check was about $1,500 this year.

If you are missing your refund check, you should visit the “ Where’s My Refund?” tool on IRS.gov. The tool will provide the status of your refund and, in some cases, provide you with instructions on how to resolve delivery problems.

Choosing direct deposit could eliminate this undelivered check problem, as well as checks that are lost or stolen. Taxpayers who elect to receive their refunds via direct deposit have access to their funds as soon as they are deposited.

In addition to choosing direct deposit, the IRS also recommends that taxpayers file their tax returns electronically, because e-file eliminates the risk of lost paper returns. E-file also reduces errors on tax returns and speeds up refunds. Nearly 8 out of 10 taxpayers chose e-file last year. E-file combined with direct deposit is the best option for taxpayers to avoid refund problems; it’s easy, fast and safe.

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The IRS is informing professionals and accounting firms that they need to get EFINs (Electronic Filing Identification Numbers) in order to be compliant for the 2012 e-filing requirements (if they haven’t already received an EFIN).

Beginning in January of 2012, paid preparers who will be preparing and filing more than eleven 1040 or 1041 forms must e-file with the IRS. Individuals and businesses who file their own taxes still have the option of filing their returns on paper.

Tax preparers must create an e-services account in order to be an authorized IRS e-filer. They will have to send an EFIN application and pass the necessary tests. The process takes at least 45 days. Individuals and tax firms only need one EFIN.

Next year’s requirements are the second and final part of a law that was created to help e-filing become the main method of tax filing for individuals, trusts and estates. For 2011, the e-filing requirement was meant for paid preparers and tax firms who filed at least 100 tax returns. In 2011, the rate for returns that were sent via e-filing increased by more than 12%.

80% of tax returns are filed online and the IRS has estimated that almost 1 billion tax returns were filed electronically safely and securely since e-filing began in 1990.

Professional tax preparers can see how the process works on www.irs.gov at “Become an Authorized e-file Provider” or by accessing the FAQ section.

If this new requirement causes hardship for preparers, they may request a waiver for one year by sending an 8894 Form (“Preparer e-file Hardship Waiver Request”). If a client asks for a paper return be sent to the IRS, the preparer must send an 8948 Form “Preparer Explanation for Not Filing Electronically” with the tax return. All forms must be kept with the preparers records.

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The IRS recently reported that they have selected four new members and one chairman for the Electronic Tax Administration Advisory Committee (ETAAC).

Organizing and discussing electronic tax administration issues as well as assisting with communication between tax professionals and the IRS via electronic interaction is what the ETAAC does.

David R. Williams, the director of the IRS Return Preparer Office, had this to say, “ETAAC provides the IRS with valuable input regarding the development and implementation of effective electronic tax administration. The IRS is pleased with the continued support of the committee.”

These new members are taking over for the members whose terms have ended. All of the new members have promised to maintained the continuity of the ETAAC. These new members are:

Timothy Blevins, Mayetta, Kansas: Timothy is a consultant with CGI’s Tax, Revenue, and Collections Center of Excellence. Timothy has more than 30 years of experience in the performance, management and improvement efforts of government information technology solutions with the Kansas Department of Revenue: Division of Taxation and Division of Motor Vehicles.

Cyrus Daftary, Newton, Massachusetts: Cyrus is a partner with Burt, Staples & Maner, LLP. His responsibilities include: consulting with multi-national corporations and financial institutions on their compliance in the IRS tax withholding and information return reporting rules, developing and implementing tax software solutions for withholding and information return reporting, and authoring a three series treaty on E-Commerce.

Yasmine (Mimi) Nolan, Kansas City, Missouri: Mimi is the director of Tax Forms Management with H&R Block. She develops tax software, validates tax calculation software, and tests tax law changes for regulatory accuracy. She is responsible for a team that monitors and analyzes changes to the federal and state income tax forms, as well as electronic filing development, tax forms management, and quality assurance in systems development. Nolan is a member of National Association of Computerized Tax Processors.

Timur Taluy, Oxnard, California: Timur is the CEO of FileYourTaxes.com. He is responsible for the development of the user interface, the secure external interface and tax intelligence platform. He also supervises the activity that contributes to the accuracy of the final tax product. He is a member of Council for Electronic Revenue Communication Advancement.

Mark Steber, Sarasota, Florida: Mark will serve as Chairman of ETAAC for the 2011-2012 term. Mark is a CPA and the chief tax officer for Jackson-Hewitt Tax Service. He has more than 25 years of experience in the tax industry and is responsible for the overall tax service delivery compliance. He is a member of the American Institute of Certified Public Accountants.

The ETAAC sends reports to Congress regarding the progress of IRS electronic tax enterprises every June. The ETAAC began in 1998 by the IRS Electronic Tax Administration. The IRS was required to set up the ETAAC because of the IRS Restructuring and Reform Act of 1998.

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The Internal Revenue Service is reminding taxpayers whose tax-filing extensions run out on October 17, 2011 to double-check their returns for expanded individual and business tax benefits.  In addition, they can file their returns electronically using IRS e-file or the Free File system.

There were 10.1 million taxpayers who requested an automatic six-month extension this year, and even at this late date, many have yet to file. IRS e-file is fast and secure and is a good option for those rushing to meet the Oct. 17 deadline that is looming for people who requested extensions, or the special Oct. 31 deadline that applies to many taxpayers affected by recent natural disasters.

Most taxpayers qualify for e-file whether or not they prepare their returns themselves or use a paid preparer.  Also, those taxpayers with incomes at or below $58,000 can file their returns for free using the Free File link on IRS.gov.

Taxpayers who file electronically can also e-pay by authorizing an electronic funds withdrawal or making a credit card payment. The IRS does not charge a fee for processing an electronic funds withdrawal. However, credit-card payments are subject to convenience fees charged by the authorized service providers.

Paper and electronic filers who cannot pay what they owe may be able to set up a payment agreement with the IRS in a few minutes. Search for the Online Payment Agreement section on IRS.gov for more information.

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How to File Your Taxes at No Cost via IRS Free File Program

This is an awesome resource made available to frugal Do It Yourself taxpayers.

Start early, check it out and you still have time to consult with a tax professional if you want to.

IRS Tax Tip 2011-11 – January 17, 2011

Everyone can prepare and e-file their federal tax returns for free through the IRS Free File Program. Free File is offered through a public-private partnership between the Internal Revenue Service and brand-name tax software companies. Free File can help you do your taxes fast; it’s safe and it doesn’t cost anything.

Free File offers two options: easy-to-use software or online fillable forms.

Free File software is for taxpayers who earn $58,000 or less

Nearly 100 million Americans – that’s 70 percent of the nation’s taxpayers – can use the free brand-name software and secure e-filing offered by private-sector companies. Several software products also are in Spanish. Each company sets its eligibility requirements, generally based on income, age or state residency. However, if your adjusted gross income was $58,000 or less in 2010, you will find at least one tax software product to use.

Here’s how it works: You must access Free File through the IRS website. At http://www.irs.gov/freefile, you can use an online tool which allows you to give a little information about yourself and the tool will guide you to the software for which you are eligible. Or, you can review the complete list of companies and their offerings and make a selection.

Once you select a software product, you will be directed away from the IRS website to that company’s website. There, the software generally will offer a step-by-step guide through the tax preparation process.

Free File does all the hard work. You don’t need to be a tax expert; the software will help find tax breaks, such as the Earned Income Tax Credit, that you may be due. The software asks the questions; you supply the answers. It will find the right tax forms and do the math. Free File has a high satisfaction rate among its users, 98% recommend it to others. Combine e-file and direct deposit and you get your refund in as few as 10 days.

A word about security: all Free File companies use the latest is secure technology. The safety of taxpayer information is everyone’s priority. Thirty million taxpayers have used Free File since 2003, safely and securely.

Some companies provide state tax return software – sometimes for free and sometimes for a fee. Some states also have a relationship with the Free File Alliance and those states are listed on the companies’ websites.

Free File Fillable Forms Is Another Free Option

For people who make more than $58,000 or who are comfortable preparing their own tax return, there is Free File Fillable Forms. It also must be accessed through http://www.irs.gov/freefile. There is no software assistance with Free File Fillable Forms. It does basic math calculations. It does not support state income tax returns. It is perfect for the true do-it-yourself taxpayer who has preferred paper tax returns in the past. It also has free e-filing.

How to Prepare and File Your Taxes Electronically

IRS Tax Tip 2011-10, January 14, 2011

IRS e-file: It’s safe. It’s easy. It’s time. IRS e-file is now the norm; not the exception. The number of e-filed Form 1040 tax returns is approaching 1 billion after 20 years of safe, secure service. In 2010, 99 million people – 70 percent of all individual taxpayers – used IRS e-file to electronically transmit their tax returns to the IRS. It’s safe, it’s easy to use and it’s time for you to try it.

The 2011 tax season will mark a significant change for both tax preparers and taxpayers. Starting January 1, many tax return preparers must be authorized IRS e-file providers so they can transmit tax returns electronically. The requirement does not apply to volunteer tax preparers. More information for paid preparers is available at http://www.irs.gov.

For taxpayers, this means it’s time to give e-file a try. The number of people who use a paper tax return or who mail a tax return dwindles each year – and for good reason.

An e-filed tax return is safe and secure. The taxpayer receives an acknowledgement within 48 hours that that IRS has received the return. If the IRS rejects the return, the receipt will explain why so the return can be quickly corrected and resubmitted.

Faster Refunds; Greater Payment Options

An e-filed tax return means a fast refund. Taxpayers who combine e-file and direct deposit can get their refunds in as few as 10 days. Nearly 75 percent of all taxpayers receive a refund and last year the average refund was approximately $2,900.

An e-filed tax return means more payment options. Taxpayers can file early and set an automatic payment withdrawal date for any date on or before the April due date. Some taxpayers may like to pay by paper check. And, they still can by mailing a check with a voucher. Taxpayers can even pay by credit card.

Get It Done with e-file

Using e-file is easy. You can e-file through your tax preparer, through commercial tax preparation software or through Free File, the free tax preparation and e-filing service available exclusively at http://www.irs.gov.

The number of people preparing their tax returns on their personal computers is growing tremendously. Software – such as that offered through Free File – guides people through a step-by-step question-and-answer process. So whether you do it yourself or have it done, just get it done with e-file.

Tax Topic 303 – Checklist of Common Errors When Preparing Your Tax Return

Before filing your return, review it to make sure it is correct and complete. The following checklist may help you to avoid common errors:

• Did you consider filing your tax return electronically? By electronically filing your tax return, many common errors may be avoided or corrected by the computer software. Depending on your income, you may even qualify to e-file for free by using IRS Free File. More information is available on the website.
• Did you clearly print your name, social security number, and address, including zip code directly on your return? Note that if you are married but filing a separate return, do not include your spouse’s name.
• Did you enter the names and social security numbers for yourself, your spouse, your dependents, and qualifying children for earned income credit or child tax credit, exactly as they appear on the social security cards? If there have been any name changes be sure to contact the Social Security Administration at www.ssa.gov or call at 800–772–1213.
• Did you check only one filing status?
• Did you check the appropriate exemption boxes and enter the names and social security numbers exactly as they appear on the social security cards, for all of the dependents claimed? Is the total number of exemptions entered?
• Did you enter income, deductions, and credits on the correct lines and are the totals correct?
• If you show a negative amount on your return, did you put brackets around it?
• If you are taking the standard deduction and checked any box indicating either you or your spouse were age 65 or older or blind, did you find the correct standard deduction using the worksheet in the Form 1040 Instructions or the Form 1040A Instructions?
• Did you figure the tax correctly? If you used the tax tables, did you use the correct column for your filing status?
• Did you sign and date the return? If it is a joint return, did your spouse also sign and date the return?
• Do you have a Form W-2 (PDF) from each of your employers and did you attach Copy B of each to your return? File only one return, even if you have more than one job. Combine the wages and withholdings from all Form W-2′s, on one return.
• Did you attach each Form 1099-R (PDF) that shows federal tax was withheld?
• Did you attach all other necessary schedules and forms in sequence number order shown in the upper right–hand corner?
• Did you use the correct mailing address from your tax form instructions?
• Did you use a postage stamp on the envelope?
• If you owe tax, did you enclose a check or money order made payable to the “United States Treasury” with the return and include your name, address, social security number, daytime telephone number, tax form, and tax year on the payment? For additional information, refer to Topic 158 , Ensuring Proper Credit of Payments.
• If you are due a refund and requested direct deposit did you check your financial institution routing and account numbers?
• Did you make a copy of the signed return and all schedules for your records?

A few of the most common errors are:

1. Incorrect or missing social security numbers.
2. Incorrect tax entered based on taxable income and filing status.
3. Computation errors in figuring the taxable income, withholding and estimated tax payments, Earned Income Credit, Standard Deduction for age 65 or over or blind, the taxable amount of social security benefits, and child and dependent care credit. Also, missing or incorrect identification numbers for child care providers.
4. Withholding and estimated tax payments entered on the wrong line, and
5. Math Errors. Both addition and subtraction.

It is important that you review your entire return because any errors may delay the processing of your return.