We all work so hard for our money that the thought of parting ways often makes us restless, yet everyone knows that our government was designed to function with our tax paying dollars. Many of us out there feel as though the only thing you can count on is death and taxes. Often times we ask ourselves, "Would the government know if I didn't pay my taxes?" Yes, the Internal Revenue Department is adamant that we all do our part to keep the country economically viable. Ever heard of Al Capone? The FBI tried for years to convict him of his many heinous crimes. Who finally got him and trotted him off to jail where he died? Yes, the IRS tried him for income tax evasion and put him in prison. Finally, one of the most notorious criminals of the Twentieth Century went to jail because he didn't pay his taxes. Obviously, we all need to understand the basics of Income taxes or we can join all of those other criminals sitting in jail because they thought they could beat the IRS.
According to federal and most state laws, if you made some sort of an income last year, than you must file an income tax return. Income tax returns are required regardless if you had income tax withheld or not; while all businesses except partnerships must file an annual tax return. For the individual, when determining whether you must file or not, the IRS takes into account your income, filing status, and age.
We must understand that the requirement of filing an income tax return is not voluntary, rather mandatory and extremely important. The Internal Revenue Service has clearly stated out the requirements for filing in the following codes §§ 6011(a), 6012(a), et seq. If you fail to file an income tax return it is considered a Class A misdemeanor with a maximum penalty of one year in jail and a $10000 fine. While the penalty for filing a frivolous income tax return is only $500, the penalty.
Thanks to modern technologically we now have the option of filing our taxes faster than before. The fastest way for you to file is electronically or you may still prefer to file the old fashion way via the mail. Whether your return is complicated or easy, both these methods will work. The primary form for the income tax return is either the 1040 NR or 1040 NR-EZ. The average time to process an accurate tax return is between six and eight weeks. Your tax return is due on April 15th. If the income tax return is late (even one day), there is an automatic tax due of 25% of your tax return. If you know that you're going to be late, file an extension, taxpayers are granted an automatic six month extension for filing an individual income tax return.
Filing an e-turn can be very beneficial to you, especially if you are waiting to receive money back from the government. If you should choose to e-file your tax return you then have the option to use direct deposit, this allows you to receive your return in as little as 10 days. Even if you do not choose the direct deposit option, you will usually receive your tax refund in half the time by e-filing.
Keep in mind that one of the most important things when filing your federal or state tax return, if filing by mail, is remembering to sign it. In some cases you may need to get a hold of your previously filed tax return. You can obtain this information in a written request to the IRS.
It is extremely important to file an income tax return. There are several non-profit organizations with trained volunteers who provide basic income tax return preparation and free tax counseling for senior citizens. If you need help, contact the IRS or a tax service. Tax returns leave no room for mistake.
Much of the IRS administration has been shifting towards a paperless paradigm. Filing for income taxes used to be cumbersome and time consuming. That is because everything is done manually. The forms are sent to you on paper. You then have to fill in the forms (don't forget your glasses) and send them back in time. If you fail to do so, you may be liable for certain penalties. Or if you make mistakes (e.g. forgot to send one particular form back), you will be prompted to repeat the process again.
And because filing for taxes manually can be a painful process, many people tend to put off completing the forms until the last minute. This only make matters worse. Some people may even forget about the filing deadline completely.
Today, filing for taxes can be handled differently. Through authorized IRS websites, you can choose to efile your taxes. In other words, you can file for taxes electronically rather than having to fill in a stack of forms. Here is how the process works.
1) Locate an authorized service provider.
You will be be able to see the IRS logo prominently displayed on the website. It is illegal to use this logo without the permission of IRS. So this is the first sign that you look out for when looking for efiling services. Don't submit any information (not even emails) to any website without the IRS authorized logo.
2) Create an account.
If this is the first time you are are efiling your tax return, you will need to create an account. Again, everything is done electronically. To begin, all you need is your SSN number. Your SSN number will be your username. Choose a password that you will remember. If possible, do not write down your password. Memorize the password. If you have a poor memory, write down the password if you must but keep it away under lock and key. You must do everything you can to avoid revealing your password to anyone else.
Also, before creating your account, make sure that you are submitting information through a secure website. A secure website allows you to transmit sensitive information that is encrypted. Your browser will show a small little lock at the status bar, and your URL should show "https" instead of the usual "http". Avoid efiling on wireless networks or public networks for security reasons.
3) Proceed to enter your information.
The efiling process is simple and straightforward. It's designed to be a step by step system so that people who are not so tech savvy can also efile. To the layman, the efiling process will appear as a wizard. You will be asked to fill in specific fields before you can proceed to the next step. That way, you don't have to worry about missing out certain fields. People tend to forget some sections when they file manually.
Both Kenneth L Myers Myers & Gen Wright are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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