The IRS, internal revenue service, has announced the early opening of the free file. The free file will open as early as seventeenth January 2014. This is the case even though filing of 2014 taxes does not officially begin until 31st of January. In fact, reality is that the internal revenue authority is requesting tax payers to get onto the free file website which is found at IRS.gov. This is in addition to preparing tax returns using the TurboTax 2014 system.
According to the message posted by IRS, practically all tax payers are free to use the Free File option. Tax payers making an annual income of $58000 or less can use this federal income tax preparation guide and filing program. This program is free for such individuals. It is important to note that about 70 percent of all tax payers fall into this category. This is information attributed to Tim Hugo who is the executive director at the Free File Alliance.
The online version of the hard copy tax forms is the Free File Fill-able from. All tax payers can use these online forms. However, they cannot be used to pay state taxes as they only perform basic federal calculations. These forms are not dependent on an applicant’s income and hence can be used by all tax applicants. It is therefore much easier and quite fast to organize 2014 taxes.
The IRS has partnered with the Free File Alliance which is a coalition of leading tax software companies. The organization is non profit and the partnership focuses on providing the two versions of the tax forms. This association between the IRS and the free file alliance has been around since 2002. Prior to this arrangement, the IRS had an arrangement with computer firms that provided free tax filing to about 60 percent of the population.
This program was initially set for three years and then renewed for a period of about 4 years. Now, over forty million applications have been filed, including TurboTax 2014, though these programs. All these programs are however supposed to be available to taxpayers via the IRS website. However, tax payers may only participate for free through the IRS website as it costs to use individual software companies.
Filing and preparing taxes each year is a responsibility of all American wage earners. While it is a recurring obligation, the process of filing and preparing taxes can be pretty complicated considering the complexity of the current tax code. When filing your taxes, it would be a good idea to take advantage of online tax preparation and guidance services provided by TaxBrain.com. Update: TaxBrain.com Software has been discontinued.
Through the use of TaxBrain.com, you will receive a number of different services. The primary advantage is that you will be able to take advantage of all the current tax code benefits. While taxes are required every year, deductions and credits that you qualify for could vary considerably from one year to the next. The software will allow you to input all of your personal information and then will determine what exactly you qualify for, which could end up saving you a lot of money.
Another advantage of using the personal accounting website is that you can be assured that your taxes are compiled and filed correctly. This can help assure that your annual tax bill is accurate, which could help you avoid fees and other tax penalties in the future.
Beyond paying taxes each year, you should also spend time tax planning for future years. Through the use of a tax calculator, you will be able to determine what you future year’s tax liability will be. Based on this information, you will be able to determine better if you should withhold more or less taxes during the year.
Someone who has not filed his 2010 tax return may be a little nervous. The IRS, the most ruthlessly efficient collection agency in the country, tends to take a dim view of people who do not file their tax returns in any year. The organization wants to make sure the government gets the money it feels that it’s owed. Whether or not the taxes are fair or not is an irrelevant issue. The government needs to make sure it has the funds it needs to continue running. This is especially true with the current national debt. It may seem to be a little clichéd, but filing 2010 tax returns can change your life.
It will not bring the great change promised by certain self-help pundits, but it certainly will bring relief. A person does not need to lie awake at night wondering if he has filed his taxed properly or if he is going to suffer from any unwanted visits from the IRS agents. He may prefer to think of the agents as men in black, but that is unlikely to bring a person any comfort. Fortunately, the IRS will do its best to make it easy for a person who owes back taxes to give it money, even if the amount it is demanding is not in line with what the person thinks he owes. Filing his 20120 taxes can prevent a larger problem down the road.
The IRS wishes taxpayers to be on the look out for 2010 tax scams. These rip-offs are not legal and could cause severe troubles for taxpayers which include paying huge interest and fines, and facing jail time. Tax scams come in a few forms ranging from a promise of a big tax refund or methods to avoid paying taxes that are illegal also called ‘untaxing’ yourself.
You should always remember the proceeding three hints.
* The content provided in your 2010 tax return is your sole responsibility. * Don’t sign the return unless you have examined everything closely to be certain it is precise. * The most important thing to recall is someone claiming they can get you a larger refund is lying
Here are tax scams to look out for:
Tax Return Preparer Fraud A deceitful tax preparer can bring a tax payer many headaches if they fall for such tactics. These kinds of 2010 tax preparers get their financial gain scanning a part of their customer’s refund and billing higher fees for their service. They appeal to new customers by promising bigger refunds. Choose a new tax preparer with caution. Apply the old adage “If something sounds to good to be true , then it usually is.” Regardless of who does your 2010 tax return you hold the responsibly of making certain of accuracy and any tax bill which may come from a doubtful claim. The IRS is currently setting up a system that requires all tax accountants be licensed with the IRS and a tax preparer number. The will be required to take a competency test and higher education courses.
Frivolous Arguments A few dishonest promoters are recognized for making bogus claims like saying the Sixteenth Amendment never got ratified which was relate to the power collect taxes, earning are not income, and filing forms and paying taxes are optional. They also allege that the requirement to file the 1040 tax form is in violation of the Fifth Amendment concerning self-incrimination and the right-to-privacy in the Fourth Amendment. Never believe any of these false claims. They will never hold up in court. Contesting liabilities is a right but it has to be done legally.
To get more information on tax scams, visit IRS.gov. Make certain to enter.gov. A site with another ending is probably not legitimate.
Tax Tips That Will Make Filing Faster And Easier (goarticles.com)
Make The Task Of Tax Filing Faster And Simpler (hubpages.com)