Last Minute Tax Tips

THINKING ABOUT GETTING THE AUTOMATIC
6-MONTH TAX FILING DEADLINE EXTENSION?

Filing a Form 4868 to extend your tax filing deadline
for 6 months is not a big deal. The IRS expects to receive
10.3 million extension requests, and all of those
taxpayers will have their deadline automatically
extended to Oct. 15.

Oct. 15 is not only the final due-date for filing returns,
it is also the last date on which a return can be filed
that will get you your "Economic Stimulus payment."
If you file earlier, you will get your payment sooner.
If you file after Oct. 15, you lose out.

An extension of time to file is NOT an extension of time
to pay taxes you owe. But...

WHAT IF YOU CAN'T PAY TAXES YOU OWE BY APRIL 15?

Taxpayers who owe but can't pay in full, have
several options available to them.

Taxpayers should file their return on time,
pay as much as they can with your return,
and visit www.IRS.gov
or file Form 9465 (Installment Agreement Request)
if you need to request a payment agreement.

If you are filing a "paper tax return", recommended
(vs. electronic filing) be sure to attach Form 9465
to the FRONT of your return.

Though interest (currently at the rate of 6
percent per year) and late-payment penalties
(normally 1/2 of 1 percent per month) apply
to any tax paid after the April 15 deadline,
you can limit these charges by paying as
quickly as possible.

In addition, by filing your tax return on time,
even without full payment, a you will avoid
the much larger 5-percent-per-month late-filing
penalty.

A short-term extension gives a taxpayer up to
120 days to pay. No fee is charged, but the
late-payment penalty plus interest will apply.

A monthly payment plan or installment agreement
gives a taxpayer more time to pay, and, although
interest still applies, the late-payment penalty is
cut in half for any month an installment agreement
is in effect. This reduced rate of 1/4 of 1 percent
per month is ONLY available IF the tax return was
filed ON TIME.

A user fee will also be charged if the installment
agreement is approved. The fee (normally $105) will
be reduced to $52, if you agree to make monthly
payments electronically through electronic funds
withdrawal.


DID YOU OVERPAY YOUR TAXES? ...AGAIN?

So far, some 87-million taxpayers have filed
their 2007 Tax Returns and 70-million of them
(80%!) received refunds. AND the SIZE of the
refund averaged $2,761.00.

Why?

It's not because the IRS got religion in April!
It's because 80% of all taxpayers overpaid their
taxes all year long, to the tune of an extra,
overpaid $200.00+ every month, for 12 consecutive
months.

Collectively, we gave Uncle Sam a $140-Billion
interest-free loan!

Now, 15 months later, Uncle Sam gives your
overpaid taxes back to you -- without paying
you any interest at all for the loan - and
most taxpayers smile and say "thank you" to
their tax preparer or to TurboTax, thinking
it is tax pro cleverness or smart technology
that got them a good deal.

No, it is their own lack of knowledge that
kept them from having another $200/month to
use for necessary living expenses.

Any taxpayer has the right to change the amount
of taxes being withheld from his/her paycheck,
any time his/her tax situation changes.

I found these step-by- step instructions for making
that change as well as many other Tax Tips for
Home Based Business Owners in:

It's How Much You KEEP, That Counts!
Not how much you Make"
-- said to be the only 'plain English' guide to
home-business tax breaks authorized by Congress.

It comes with an amazing author-backed guarantee:
"It will introduce you to new, additional tax
deductions worth at least 100-times what you paid,
or your money back - at any time, in any condition,
for a FULL YEAR." I have found it to be very useful.