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.

Daniel Stoica Accounting Professional
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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.

Daniel Stoica Accounting Professional

The Internal Revenue Service is giving tax relief to those who have been affected by Hurricane Irene.

The IRS declared that individuals and businesses in North Carolina, New Jersey, New York, and Puerto Rico will be given a tax break. Other areas affected by the hurricane will also receive tax relief in the coming weeks. Once FEMA has assessed the total damage, the IRS plans to make adjustments to their relief program.

This tax relief will delay many tax filing and payment deadlines. The deadline for Irene victims will be October 31, 2011. Included in this delay are corporations and businesses that had an extension on their 2010 taxes of September 15th, 2011. Individual taxpayers and businesses that received extension will receive another one, due October 17th, 2011. Included in these extensions are tax payments for the third quarter, which are usually due September 15th.

All details concerning these extensions, and information on filing a claim a disaster loss, for all of the areas affected by the hurricane can be found on www.irs.gov. Detailed information can also be found at www.disasterassistance.gov, the FEMA website. There, taxpayers can find information about damage assessment and recover.

Tax Relief Available So Far

For residents of North Carolina, New Jersey, New York, and Puerto Rico, who live in federally declared disaster areas, will receive filing and payment relief by filing a claim with the IRS. The IRS will announce more relief for other areas as they are declared. The IRS is asking that taxpayers and tax professionals keep up with pending areas by looking for “Tax Relief in Disaster Situations” on the IRS website.

Right now the IRS has applied the following counties to the relief program:
-In North Carolina: Beaufort, Carteret, Craven, Dare, Hyde, Pamlico and Tyrell;
-In New Jersey: Bergen, Essex, Morris, Passaic and Somerset;
-In New York: Albany, Delaware, Dutchess, Essex, Greene, Schenectady, Schoharie and Ulster; and
-In Puerto Rico: Caguas, Canovanas, Carolina, Cayey, Loiza, Luquillo and San Juan.

Daniel Stoica Accounting Professional

Top 10 Tax Time Tips

IRS TAX TIP 2011-01, January 03, 2011

It’s that time of the year again. The income tax filing season has begun and important tax documents should be arriving in the mail. Even though your return is not due until April, getting an early start will make filing easier. Here are the Internal Revenue Service’s top 10 tips that will help your tax filing process run smoother than ever this year.

1. Start gathering your records  Round up any documents or forms you’ll need when filing your taxes: receipts, canceled checks and other documents that support income or deductions you’re claiming on your return.

2. Be on the lookout  W-2s and 1099s will be coming soon; you’ll need these to file your tax return.

3. Use Free File  Let Free File do the hard work for you with brand-name tax software or online fillable forms. It’s available exclusively at http://www.irs.gov. Everyone can find an option to prepare their tax return and e-file it for free. If you made $58,000 or less, you qualify for free tax software that is offered through a private-public partnership with manufacturers. If you made more or are comfortable preparing your own tax return, there’s Free File Fillable Forms, the electronic versions of IRS paper forms. Visit www.irs.gov/freefile to review your options.

4. Try IRS e-file  After 21 years, IRS e-file has become the safe, easy and most common way to file a tax return. Last year, 70 percent of taxpayers – 99 million people – used IRS e-file. Starting in 2011, many tax preparers will be required to use e-file and will explain your filing options to you. This is your chance to give it a try. IRS e-file is approaching 1 billion returns processed safely and securely. If you owe taxes, you have payment options to file immediately and pay by the tax deadline. Best of all, combine e-file with direct deposit and you get your refund in as few as 10 days.

5. Consider other filing options  There are many different options for filing your tax return.You can prepare it yourself or go to a tax preparer.You may be eligible for free face-to-face help at an IRS office or volunteer site.Give yourself time to weigh all the different options and find the one that best suits your needs.

6. Consider Direct Deposit  If you elect to have your refund directly deposited into your bank account, you’ll receive it faster than waiting for a paper check.

7. Visit the IRS website again and again  The official IRS website is a great place to find everything you’ll need to file your tax return: forms, publications, tips, answers to frequently asked questions and updates on tax law changes.

8. Remember this number: 17  Check out IRS Publication 17, Your Federal Income Tax on the IRS website. It’s a comprehensive collection of information for taxpayers highlighting everything you’ll need to know when filing your return.

9. Review! Review! Review!  Don’t rush. We all make mistakes when we rush. Mistakes will slow down the processing of your return. Be sure to double-check all the Social Security Numbers and math calculations on your return as these are the most common errors made by taxpayers.

10. Don’t panic!  If you run into a problem, remember the IRS is here to help. Try http://www.irs.gov or call toll-free at 800-829-1040.