The tax season is in full swing, and those who haven’t already filed may be starting to panic.

However, there is no need to panic because the IRS offers free assistance online, via telephone and in person.

Here are four resources to help you find the information that you need to file your taxes this year.

1. CLICK: The IRS website at www.irs.gov contains a wealth of tax information. You can even prepare and file your federal tax return at no cost through Free File.  Free File is a service offered by IRS and its partners who offer free tax preparation software and free electronic filing. You must go to www.irs.gov to use Free File. If you have tax questions, you can also check out 1040 Central on the Individuals page for the latest news. You can even check the status of your refund with Where’s My Refund?

2. CALL: Call the IRS Tax Help Line for Individuals, 800-829-1040, to get answers.  To hear pre-recorded messages covering various tax topics or to check the status of your refund, call 800-829-4477. To order free forms, instructions and publications, call 800-829-3676. TTY/TDD users may call 800-829-4059 to ask tax questions or to order forms and publications.

3. GET FREE HELP: Free tax preparation is available through the Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs in many communities. Volunteer return preparation programs are provided through partnerships between the IRS and community based organizations. They offer free help in preparing simple tax returns for low-to-moderate-income taxpayers. To find a site near you, visit www.irs.gov, or call 800-906-9887. Qualified taxpayers (age 60 or older) can also find help at a local TCE site by visiting www.aarp.org or calling 888-227-7669.

4. VISIT: If you want face-to-face assistance, you can find help at a local IRS Taxpayer Assistance Center. Locations, business hours and an overview of services are available at www.irs.gov. Just go to the Individuals tab and click on the Contact My Local Office link on the left under IRS Resources.

For more information about free services provided by the IRS, review Publication 910, IRS Guide to Free Tax Services available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

You may also contact an accounting and/or tax professional.

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You may be one of the millions of taxpayers who qualify for free tax preparation assistance from IRS-sponsored community-based, volunteer programs. If you earn less than $50,000 per year, or if you are 60 or older, you may be able to take advantage of two programs sponsored by the IRS — the Volunteer Income Tax Assistance (VITA) program and/or the Tax Counseling for the Elderly (TCE) program.

The IRS VITA program offers free tax help to people who earn less than $50,000, and most locations offer free electronic filing. The TCE program offers free tax help to individuals aged 60 or older.

The IRS certifies community volunteers so they can help eligible persons with tax credits, such as the Earned Income Tax Credit, the Child Tax Credit and the Credit for the Elderly. Some volunteer sites have language specialists to assist people with limited English proficiency. More than 12,000 free tax preparation sites are open nationwide this year as the IRS continues to expand its partnerships with nonprofit and community organizations performing these vital tax preparation services.

The American Association of Retired Persons (AARP) operates the Tax-Aide free tax preparation program during the filing season as part of the TCE program. Trained and certified AARP Tax-Aide volunteers help taxpayers with low-to-moderate income, with special attention paid to those 60 and older.

The IRS partners with the military to provide free tax assistance to military personnel and their families. The Armed Forces Tax Council consists of the tax program coordinators for the Army, Air Force, Navy, Marine Corps and Coast Guard. Volunteers are trained and equipped to address military-specific tax issues, such as combat zone tax benefits.

Taxpayers can typically find locations and hours for these volunteer tax preparation services through city information hotlines and local community organizations.  Local VITA site information is also available through a new online tool on the IRS Website – www.irs.gov Taxpayers can search the word “VITA” in IRS.gov and click on the option “Free Tax Return Preparation For You by Volunteers,” followed by ”Find a VITA site near you” to access the tool. Site information is also available by calling the IRS toll-free number 1-800-906-9887. To locate the nearest AARP Tax-Aide site, visit www.aarp.org or call 1-888-227-7669.

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Every year, the IRS announces important changes that all taxpayers should understand before they file. Check out www.IRS.gov to get the most current updates on any new legislation that may affect your tax return.

Here are some of the tax change highlights:

Due date difference – it’s not the 15th this year. This year, you need to file your federal tax return by April 17, 2012. The due date is April 17 because April 15 is a Sunday and April 16 is the Emancipation Day holiday in the District of Columbia.

New forms for capital gains and losses as well as foreign financial assets. In most cases, you must report your capital gains and losses on the new Form 8949, Sales and Other Dispositions of Capital Assets. Then, you report certain totals from that form on Schedule D (Form 1040). If you had foreign financial assets in 2011, you may have to file the new Form 8938, Statement of Foreign Financial Assets, with your return.

If you converted from a traditional to Roth IRA. If you converted or rolled over an amount from a traditional IRA to a Roth IRA or designated Roth in 2010 and did not elect to report the taxable amount on your 2010 return, you generally must report half of it on your 2011 return and the rest on your 2012 return.

Standard mileage rates. The 2011 rates for mileage are different for January 1 through June 30 than for July 1 through December 31. For business use of your car, you can deduct 51 cents a mile for miles driven the first half of the year and 55 ½ cents for the second half. Medical and moving mileage are both 19 cents per mile for the early half of the year and 23 ½ cents in the latter half.

Alternative motor vehicle credit. You can claim the alternative motor vehicle credit for a 2011 purchase only if the vehicle is a new fuel cell motor vehicle.

Standard exemptions and deductions were increased.

• The standard deduction increased for some taxpayers who do not itemize deductions on IRS Schedule A (Form 1040). The amount depends on your filing status.
• The amount you can deduct for each exemption has increased $50 to $3,700 for 2011.

First-time homebuyer credit. The credit expired for most taxpayers for 2011. Some military personnel and members of the intelligence community can still claim the credit in 2011 for qualified purchases.

Self-employed health insurance deduction. This deduction is no longer allowed on Schedule SE (Form 1040), but you can still take it on Form 1040, line 29.

Alternative minimum tax (AMT) exemption amount increased. The AMT exemption amount has increased to $48,450 ($74,450 if married filing jointly or a qualifying widow(er); $37,225 if married filing separately).

Health savings accounts (HSAs) and Archer MSAs. The additional tax on distributions from HSAs and Archer MSAs not used for qualified medical expenses increased to 20 percent. Beginning in 2011, only prescribed drugs or insulin are qualified medical expenses.

Health coverage tax credit. Recent legislation changed the amount of this credit, which pays qualified health insurance premiums for eligible individuals and their families. Participants who received the 65 percent tax credit in any month from March to December 2011 may claim an additional 7.5 percent retroactive credit when they file their 2011 tax return.

Mailing a return. The IRS changed the filing location for several areas. If you’re mailing a paper return, see the Form 1040 instructions for the correct address.

Detailed information on these changes can be found on the IRS website – www.irs.gov.

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Are you one of the individuals who is eligible for the Earned Income Tax Credit? This credit can be a financial help for people who earn $49,078 or less in 2011. Four of five eligible taxpayers filed for and received their Earned Income Tax Credit (EITC) last year.

Here are some facts and tips about the EITC.

1. Each year of your life can bring big changes. Just because you didn’t qualify for the EITC last year doesn’t mean you won’t this year, because as your financial, marital or parental situations change, your ability to qualify may change, too.

2. If you qualify for the EITC, your credit could be worth up to $5,751. EITC not only reduces the federal tax you owe, but could result in a refund. The amount of your EITC is based on your earned income and whether or not there are qualifying children in your household. The average credit was around $2,240 last year.

3. You must file a federal income tax return and specifically claim the credit – even if you are not otherwise required to file- if you are eligible to claim the credit. Remember to include Schedule EIC, Earned Income Credit when you file your Form 1040 or, if you file Form 1040A, use and retain the EIC worksheet.

4. If your filing status is Married Filing Separately, you do not qualify for EITC .

5. You must have valid Social Security numbers for yourself, your spouse (if you are filing a joint return) and any qualifying child listed on Schedule EIC.

6. You must have earned income. You have earned income if you work for someone who pays you wages, you are self-employed, you have income from farming, or – in some cases – you receive disability income.

7. Married couples and single people without children may qualify. If you do not have qualifying children, you must also meet the age and residency requirements, as well as dependency rules.

8. Special rules apply to members of the U.S. Armed Forces in combat zones. Members of the military can elect to include their nontaxable combat pay in earned income for the EITC. If you make this election, the combat pay remains nontaxable.

9. It’s easy to determine whether you qualify by using the EITC Assistant, which is an interactive tool available on the IRS website.

10. Free help is available at Volunteer Income Tax Assistance sites to help you prepare and claim your EITC. If you are preparing your taxes electronically, the software will figure the credit for you. To find a VITA site near you, visit the IRS.gov website.

For more information about the EITC, see IRS Publication 596, Earned Income Credit. You can download this publication – available in English and Spanish – from this website or order it by calling 800-TAX-FORM (800-829-3676).

Here are some helpful links:

• EITC Assistant
• Earned Income Tax Credit

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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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In a word, no.

Many taxpayers find themselves in a situation where they cannot pay their tax obligations for a particular tax year.  If that’s your situation, you can opt to make monthly payments through an installment agreement if you’re not financially able to pay your tax debt immediately. You can find out more about installment agreements at http://www.irs.gov/individuals/article/0,,id=243335,00.html.

However, if you are currently paying your tax obligation through and installment agreement, any refund due to you in a future year will be applied  against the amount that you owe.

Some facts about installment agreements and refunds:

• The IRS will automatically apply the refund to the taxes owed.
• You must continue making your installment agreement payments as  scheduled and in full because your refund is not applied toward your  regular payment, and therefore any payments due under the installment  agreement must still be made in full.
• Regardless of whether you are participating in an installment  agreement or payment plan with the IRS, you may not get all of your  refund if you owe certain past-due amounts, such as federal tax, state  tax, a student loan, or child support. For more information you can  contact Financial Management Service (FMS) toll-free at 800-304-3107.

If you have any questions about installment agreements or refunds you are owed, contact a tax professional.

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The IRS routinely evaluates the standard mileage rates that are used to calculate the deductible costs of using a vehicle for business, medical, moving or charitable purposes. This evaluation is based on an annual study of the fixed and variable costs of operating an automobile, and the IRS adjusts the rates accordingly. Because the fixed and variable costs of operating a vehicle have not drastically changed since June 2011, the last time a standard mileage rate adjustment was announced, the 2012 rates will not change much.

Beginning on January 1, 2012, the standard mileage rates for the use of cars, vans, pickups or panel trucks will be:

• 55.5 cents per mile for business miles driven
• 23 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

The rate for business miles driven is not changing from the mid-year adjustment that became effective on July 1, 2011. The medical and moving rate has been reduced by 0.5 cents per mile.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical or charitable expense are in Rev. Proc. 2010-51.

Notice 2012-01 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.

If you have questions about the best way to handle miles you have driven for business, charitable, medical or moving purposes on your taxes, contact a tax professional.

Daniel Stoica Accounting Professional

Did you know that there is an independent organization within the IRS called the Taxpayer Advocate Service (TAS)?  The TAS helps taxpayers who are going through economic difficulties such as a lack of adequate food, housing or transportation. This organization also works with individuals who are trying to resolve a problem with the IRS or who feel that the IRS system is not working properly.

The Taxpayer Advocate Service claims that it is the voice of the taxpayer at the IRS, and its services are free and tailored to meet the needs of taxpayers. Taxpayers may be eligible for TAS help if they have tried to resolve their tax issues through regular IRS channels but have gotten nowhere or they feel that IRS procedures are not working properly. They also help taxpayers whose problems are costing a great deal of money and difficulty, and that help may also include the cost of professional representation.

Individuals as well as businesses may receive help from the TAS.

The Taxpayer Advocate Service has offices in every state. Taxpayers can call 1-877-777-4778 for more information and to see if you qualify.

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Every year, the IRS announces that millions of dollars in tax refunds are lost, stolen or returned to the IRS as undeliverable. These undeliverable or stolen refund checks can be avoided altogether if taxpayers choose to have their refunds deposited directly into their bank accounts.

Taxpayers who choose direct deposit receive their refunds faster than those who choose a paper check.

Direct deposit also allows taxpayers to easily split their refunds to two or even three different checking and/or savings accounts. In order to do this, you just need to use Form 8888, Allocation of Refund (Including Savings Bond Purchases). Just follow the instructions on the form. (If you want IRS to deposit your refund into just one account, use the direct deposit line on your tax form.)

When you split refunds, you have a convenient option for managing your money because you can send some of your refund to an account for immediate use and some for future savings.

If you have any questions about direct deposit, contact a tax professional.

Daniel Stoica Accounting Professional