Filing Your Taxes: When, Why, and How to Get
the Help You Deserve
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Source: Balance Financial Fitness Program. (n.d.). Filing your taxes:
When, why, and how to get the help you deserve. Retrieved March 21,
2005, from www.balancepro.net/eapeducation/filingyourtaxes.html.
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The process of filing income tax returns
is, for many Americans, not a favorite annual event. A common
reason people put the task off is because they know they
will owe money - and can't afford to pay. Yet not filing
or filing late comes with some pretty big repercussions.
Some of the drawbacks of not filing by April 15 (or April
16 this year) (or August 15, if you file an extension) are:
- Forfeiting the opportunity to pay in installments.
- Your tax bill could increase by 25% or more, due
to penalty and interest charges.
- Additional penalties and/or criminal prosecution
if you continue to not file.
- Losing the refund, if there's one due (the deadline
for claiming refunds is three years after the return
due date).
- Not getting the Earned Income Tax Credit, if you're
entitled to it.
- The loss of Social Security credits that go toward
your retirement (if you are self-employed and don't
file returns within three years of the due date).
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If you do owe a big tax bill, don't despair
- the government wants to make it easy for you to pay. Most
people are able to arrange for an installment program, where
the amount owed is spread out over time. You may even be
able to obtain an offer in compromise (settling for less
than the amount owed). But remember, you have to file to
be eligible for either option.
Another common reason for filing tax returns late or not at all is that it
can be a grueling and confusing procedure. However, many people can take advantage
of free tax return assistance programs. Here are some of the biggies:
Volunteer Income Tax Assistance Program (VITA)
If you make under $35,000, the IRS has arranged
for you to receive free tax preparation assistance. Specially
trained volunteers set up shop in such convenient locations
as libraries, schools, and shopping centers, and can help
you prepare basic tax returns. Many locations even offer
free electronic filing. Call 1-800-829-1040 for the location
of your nearest VITA site.
Tax Counseling for the Elderly (TCE)
Over the age of 60? Then you are eligible
for the Internal Revenue Service's (IRS's) TCE Program. Services
include free tax counseling and basic income tax return preparation.
For more information on TCE, call 1-800-829-1040.
AARP Tax-Aide
Whether you are a senior citizen or are a
low to middle income earner, you can take advantage of AARP's
Tax-Aide counseling program (part of the TCE Program). During
tax time, trained and certified volunteers help prepare taxes
at over 9,000 sites across America. To locate your closest
site, call 1-888-227-7669.
The Armed Forces Tax Council (AFTC)
The military is a partner in the VITA Program,
so if you are in the Army, Air Force, Navy, Marine Corps,
or Coast Guard, you and your family can get free tax advice
and assistance within your installations. The AFTC oversees
the operation and serves as the main conduit for outreach
by the IRS to military personnel and their families.
The IRS
The IRS wants to help. Really. They offer
free, individualized advice by computer, telephone, and in
person to all taxpayers - with no income or age restrictions.
IRS employees help you obtain forms and publications and
can answer a wide range of tax questions. Assistance is available
by calling 1-800-829-1040.
About MINES & Associates
For over 25 years MINES & Associates has
been a nationally recognized business psychology firm that
provides a variety of services to corporate employers including
employee assistance programs (EAP), managed mental healthcare,
organizational development and psychology services, wellness
programs, behavioral risk management, disease management,
PPO services, and a number of other technology based services.
MINES & Associates is divided into two main divisions,
Organizational Psychology and Health Psychology, and currently
serves a diverse portfolio of clients in all 50 states, Canada,
Mexico, and the UK.
Please log on to http://www.minesandassociates.com for
the latest news and information on MINES & Associates.
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