Monday, April 02, 2007

Public Service Announcement For Tax Filers

Here's a public service announcement for those folks who have not yet filed their tax returns. Tax Prof Blog provides the top five mistakes made on returns.

I'd add a couple others to that list. If you're still doing a return by paper, consider using a computer software program like TurboTax (disclosure - I've used the product years back and it finds deductions and does the math so you don't have to). The computer programs not only prompt you for all kinds of information, but it checks your math, deductions, and credits to ensure that you file an accurate return.

Math mistakes are a big problem, and can lead to delays in processing returns. If you're using computer software, those mistakes disappear. The same goes for SSN/tax id# mistakes. Typos can cause delayed returns.

Electronic filing also has the benefit of quicker handling of returns and refunds. States like the electronic filing because it means that the returns are easier to read and process and taxpayers should like them because they make the process of filing quicker and easier.

Finally, many states have moved their deadline for filing tax returns for tax year 2006 to either April 16 or April 17 because April 15 falls on the weekend and April 16 is a state and/or District of Columbia holiday. Even with the extra time, procrastinators always seem to find a way to wait until the very last moment to file. Note that when you wait to the last moment, you run the risk of making needless mistakes by rushing to get the return in without including items as basic as W-2 forms, interest declarations, math mistakes, or forgetting to sign your return.

All those omissions can result in delayed processing.

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