If you are one of the millions of individuals who need to make a payment with your tax return this year, these tips will help the process go more smoothly.

1. Do not send cash to the IRS.

2. Whether you file a paper return or electronically, you can pay by phone or online using a credit or debit card.

2. If you file electronically, you can file and pay in one step by authorizing an electronic funds withdrawal via tax preparation software or a tax professional.

4. Electronic payment options provide an alternative to checks or money orders. You can pay taxes or user fees 24 hours a day, seven days a week. Visit the IRS website at www.irs.gov and search e-pay, or refer to Publication 3611, Electronic Payments for more details.

5. If you itemize, you may be able to deduct the convenience fee charged for paying individual income taxes with a credit or debit card as a miscellaneous itemized deduction on Form 1040, Schedule A, Itemized Deductions. The deduction is subject to the 2 percent limit.

6. If you file on paper, don’t staple your payment to your form.

7. If you pay by check or money order, make sure it is payable to the “United States Treasury.”

8. Always provide on the front of your check or money order your correct name, address, Social Security number listed first on the tax form, daytime telephone number, tax year and form number.

9. Complete and include Form 1040-V, Payment Voucher, when mailing your payment to the IRS. Double-check the IRS mailing address. This will help the IRS process your payment accurately and efficiently.

10.  For more information, call 800-829-4477 and select TeleTax Topic 158, Ensuring Proper Credit of Payments. You can also find out more in Publication 17, Your Federal Income Tax and Form 1040-V, both available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

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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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When you change your name due to a marriage, divorce or any other reason, you will need to make sure that the name on your tax return matches the name that is registered with the Social Security Administration (SSA).  Remember that your Social Security Number is how you are ultimately identified on your tax returns.  When there is a discrepancy between the name you enter on your tax return and the name that shows on your SSA records, the processing of your return can be delayed or even rejected.

Here is the process to manage a name change with the IRS and the SSA.

-Notify the SSA if you took your spouse’s last name when you got married.  Your name change isn’t official until you notify the SSA.  The same goes for if you got a divorce and changed your name back to a previous name.
-Changing your name is a fairly easy process.  You just need to file a Form SS-5 at your local SSA office.  For SS-5 is also available on the SSA’s website at http://www.socialsecurity.gov.  You may also call 800-772-1213.

Note: Your new Social Security card will have the same number. It will just reflect your new name.

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Did you know that you can get a copy of your tax return (also called a “tax return transcript”) from the IRS?

Free Copies (Transcripts)

If you cannot find a copy of your tax return, fortunately, you can obtain a transcript from the IRS.  A free tax return transcript shows most line items from your tax return (Form 1040, 1040A or 1040EZ) as you originally filed it, including any accompanying schedules and forms. Your transcript will  include all the information a lender or government agency needs, at least in most cases. Ask the requester (usually a mortgage company of student loan agency) or your tax return copy to make sure that this type of return transcript will meet their requirements. The tax return transcript is generally available for the current and past three years.

The IRS can also provide a tax account transcript. The tax account transcript is also free and shows basic data from your return, including marital status, type of return filed, adjusted gross income and taxable income. Like the tax return transcript, the tax account transcript is generally available for the current and past three years.

You can order your transcript(s) using the IRS’s Order a Transcript application. You can also call the IRS at 1-800-908-9946.

Exact Copies Not Free

If you need an exact copy of one of your tax returns, includes all attachments such as W-2′s, you will need to complete Form 4506 (Request for Copy of Tax Return).  Exact copies cost $57.00 and are generally available for returns filed in the current and past six years. Copies of jointly filed tax returns may be requested by either spouse and only one signature is required. Allow 60 calendar days to receive your copies.

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You have probably heard people argue about the need to comply with federal tax laws.  You, or someone you know, may even believe that filing taxes is voluntary or that the federal tax laws are unconstitutional.  Of course, people can hold any belief that they want, and they can choose to file or not file according to those beliefs.  The truth is, however, that the IRS does not listen to any of these arguments.  They have even published a document called “The Truth About Frivolous Tax Arguments”.  If you have questions about whether or not we are required to file, this document will address all of them.

Some of the arguments that the document addresses are:

• The filing of a tax return is voluntary
• Payment of taxes is voluntary
• Only foreign income is taxable
• Taxpayers can refuse to pay taxes due to religious or moral grounds
• The IRS is not an agency of the United States
• Federal Reserve Notes are not income

“The Truth About Frivolous Tax Arguments” can be found here.

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If you are like many Americans, you usually pay someone to prepare your tax return.  As with any individual or company that you ask to perform a service for you, it’s a good idea to do some research before you choose a tax preparer.  Even if you have someone else prepare your taxes, you are still legally responsible for what is on your tax return.

Here are some tips for finding the best tax preparer for you:

-Ask questions. Ask the preparer how he/she keeps up to date on changes in the tax code and what, if any, organizations he/she belongs to that would provide continuing education and resources.  Effective 2011, all paid tax preparers must have a Preparer Tax Identification Number (PTIN) that must be renewed every year.

-Check out the preparer’s fees.  Preparers should not base their fees on a percentage of your refund.  Also, check out several preparers in your area to see what the average fee is.  The fees should not be either too high or too low for your area and type of tax return.

-Do not sign a blank return, and run away from any preparer who asks you to do so.  It is your duty to sign the forms after you review them.  Also, make sure that your preparer signs the forms and includes his/her PTIN.

-Choose a preparer who looks permanent.  It may be important to contact your preparer after your return has been filed, so it’s a good idea to use one who doesn’t have a “fly by night” sort of operation.  Ask for a referral from a trusted friend or relative, or take a look at online sites that provide user reviews.

-Inspect the preparer’s history.  You can always check the Better Business Bureau to see if a preparer has several complaints.  CPA’s and attorneys have their own regulatory organizations that you can check as well.

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The IRS has stated that large estates of those who passed away in 2010 will have an extension to file their returns and pay estate taxes. The extension is expanded until January, 2012. The IRS is also granting no penalties for some beneficiaries on these estates for their 2010 tax returns.

This relief was granted so that estates worth more than $5 million will have time to adhere to the major tax law changes that were put in place last year. The modified estate tax forms can be downloaded from irs.gov and the carry-over form will be available this fall.

The IRS will give the following relief:

Large estate whose beneficiaries opt out of the estate tax will have until January 17^th, 2012 to file the 8939 Form. This carry-over form was originally due on November 15^th of this year. The change is specific to the date and not a true extension, there will be no other forms required when filing your return.

For 2010, estates that requested an extension on the 4768 Form will be be given until March of 2011 to file their returns and pay any taxes that are due. A six month extension is usually granted for those who file this form, but if there is a good cause to extend payments, the extension is granted. Most estates for the 2010 tax year that file the 4768 Form will have until March 19^th, 2012 to file a 706 or 706-A Form. If someone passed away in late 2010, generally after December 16^th, 2010, but before January 1^st, 2011, the due date to file is 15 months after the owner of the estate has passed away. There will be no late filing or late payment penalties, but there will still be interest on estate taxes that are paid after they are due.

There is a penalty relief for many beneficiaries of large estates and trusts who have already filed their 2010 tax returns or requested an extension and will file before October 17^th, 2011. Late payment and penalty relief will apply to beneficiaries of estate owners who passed away in 2010 and who sold the property in 2010. If they reported incorrect gains or losses due to not knowing that the estate was eligible for the carry-over. Information about this extension and relief can be found in Notice 2011-76 on irs.gov.

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The IRS sends notices to millions of taxpayers every year, but there is no need to panic. There are 8 things you should know if you get a notice or letter from the IRS.

1. The last thing you want to do is panic. Most letters or notices can be dealt with very easily.
2. The IRS could send you a letter for any number of reasons. They could be from payment requests to changes on your account to requesting more information from you. The letters can also mean you need to contact them for account-specific reasons.
3. Every notice from the IRS gives instructions about what needs to be done regarding your account.
4. For correction notices, you may want to review the letter and make sure everything corresponds on your tax return.
5. You only need to reply to a correction notice if you you owe a payment, but not if everything else is correct in the notice.
6. If you disagree with a correction the IRS has made, you need to contact them right away. Doing so in writing is best, and explain why you disagree, and include any documentation that supports your claim. Tear off the bottom part of the notice and send it with your letter to them. Please wait at least 30 days to hear back from the IRS.
7. Generally, you can take care of any notices without having to call or write the IRS, but if you have any questions, you can call the number that is on the upper right corner of the notice. Have your tax return and the letter with you when you call.
8. Make sure to keep all letters and notices you receive from the IRS and keep them with the copies of your tax returns.

If you have questions or want more information about IRS notices or bills, you can look at Publication 594, The IRS Collection Process. Publication 17, Your Federal Income Tax For Individuals, offers information about penalties and interest. You can find both at irs.gov or by calling 800-829-3676. You may also want to speak to a tax professional.

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Have you earned some income in the last few years but didn’t file your tax return because you didn’t earn enough to warrant filing? If so, you may have money waiting for you from the IRS. The IRS has millions of dollars waiting to be claimed.

If you feel you may be entitled to your share of this unclaimed money, the IRS offers help on how to claim it:

Unclaimed Refunds

There are some taxpayers who earned income in past years but didn’t make enough money to have to file a tax return. These people may be able to claim a refund from the tax that was withheld from their pay. Other taxpayers didn’t have any taxes taken out of their checks, but they may still be eligible for the Earned Income Tax Credit. These people will have to file a tax return in order to claim it.

-In order to claim this money, a tax return must be filed within three years of the tax return’s due date.

-The unclaimed money will become the property of the United States Treasury if there is no claim for the money within the three year time limit.

-The IRS will not assess a penalty if you file a late return where you are claiming your refund.

-For forms and publications that will instruct you on how to claim your potential refund, log on to www.irs.gov and click on Forms and Publications, or call 800-829-3676.

-To find information about the Earned Income Tax Credit, log on to www.irs.gov.

Undeliverable Refunds

Perhaps you were expecting a refund, but didn’t receive it?

-All refunds are sent to your last known address on file with the IRS. The checks will be returned to the IRS if you don’t provide them, or the post office, with your new address.

-You can updated your address on the IRS website by clicking on the “Where’s My Refund?” tab. You will have the opportunity to give your new address, and your refund check will be mailed to you at your new address.

-You can download and submit the 8822 Form, Change of Address, and mail it to the IRS. Or, you can call 800-829-3676 to request the form.

-If you feel you have money coming to you and you don’t have access to the Internet, check your tax return or talk to your tax preparer. If everything looks correct, you can call the IRS assistance line at 800-829-1040 and check the status of your refund.

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If you are thinking of taking one of those tax refund anticipation loans, you might want to think twice about it. It is probably better to just wait it out because you will get your money. These short terms loans end up costing American taxpayers over $900 million in fees every year. Over 12 million people shelled out high fees and percentage rates in order to get their refunds faster.

Here are 3 reasons to not even ask for this refund anticipation loan.

1. Large Fees: If you add up the loan fees, the tax preparation fees and the e-filing charges, the average refund of $2000.00 is reduced by nearly $300.00 just to begin the filing of your return. Every one of us wants to know when we will get our refunds and some of us need that extra money so badly we are willing to spend the extra money to get it faster.
2. Outrageous APR: In order to go take a loan on your refund, you could end up paying between 222.5% and 2000% in interest. This is no joke. We wouldn’t accept those terms for any other kind of loan, so why accept it for money that is already rightfully yours?
3. The IRS Could Hold Up Your Refund: If the IRS finds a problem with your tax return, they could take weeks, or sometimes even months to finish processing your refund. If this is the case, your short-term loan turns into a long-term loan and you will end up having to pay out those outrageous interest rates. If that happens, goodbye tax refund.

If you take the time to plan ahead, you won’t end up looking for a way to get your refund so quickly. You can wait it out and not stress over it. There are certain things you can do to not stress over the whereabouts of your refund:

3 Things You Can Do Next Year

1. You can reduce your tax withholding for next year.
2. You can file your taxes as soon as you get your W-2, file electronically and opt-in for direct deposit.
3. Try to change your financial circumstances (i.e. get yourself into a smaller tax bracket or look for deductions and credits).

If you have any questions about your refund or a refund loan, please contact a tax professional.

Daniel Stoica Accounting Professional