Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, April 12, 1993 TAG: 9304100011
SECTION: BUSINESS PAGE: A-8 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
DATELINE: LENGTH: Medium
LAST-MINUTE TAX TIPS
Tax returns must be in the mail by midnight Thursday. It's a deadline you must meet even if you don't have the money to pay.Failure to file because of lack of money can only compound your problems. That's because it's a separate - and more serious - offense than being unable to pay.
Even with more lenient terms announced last week to accommodate late payers, the IRS advises people to complete and mail their returns, along with as much money as they can pay toward the bill.
The IRS will then bill you for the balance due, along with interest and penalties. Ultimately you may have to ask the IRS to work out an installment payment schedule. Last week the IRS said it would give those who request extensions until Aug. 15 to pay their full tax bills but will assess interest on the amount due.
But at least avoid extra penalties for not filing at all.
If you mail as late as Thursday, be sure the postal service collection box you use will be picked up later the same day. Some boxes, especially those in residential areas, are collected once a day, in the morning.
After final 5 p.m. mail collections, take your return to the region's main post office. It is on Rutherford Avenue, across Williamson Road from the Roanoke Civic Center.
If you cannot complete the return for some reason, send the IRS a completed copy of Form 4868. That will give you an automatic filing extension to Aug. 16.
But it won't excuse you from the taxes. Form 4868 must be accompanied by a check that covers the amount you owe.
If you find a mathematical mistake after filing a return, you can amend it later through Form 1040X.
Don't use your tax return as a protest about taxes or any other cause. Filing what the government considers a frivolous return can cost you a $500 penalty.
Here are some other last-minute tips:
You and your spouse both must sign the return if you are filing jointly. If your child has to file but cannot sign, you must sign the child's name and add your own signature.
Don't overlook those little "sequence numbers" at the top right of your 1040 and 1040A schedules and forms. They show the order in which all the papers should be attached to expedite clerical work at the IRS. The basic 1040 or 1040A is always the first page.
Avoid a frequent taxpayer error, leaving blank or giving an erroneous zip code.
Be sure your interest and dividends are listed on the proper lines on Schedule B. IRS computers won't accept mixing the two.
Keep your tax records for at least three years. Any record relevant to ownership of property, especially your home, should be retained permanently.
Also save forever copies of all Forms 8606 and other records relating to IRAs. Otherwise you could find yourself having to pay tax on all of the money, even the nondeductible deposits that have already been taxed.
If you have trouble with the IRS, remember that Congress has passed a Taxpayer Bill of Rights. It comes into play if the IRS decides to audit your return or takes steps to collect overdue taxes.
The 1988 law was a major step by Congress to try to level the playing field a bit, to ensure that the awesome power of the IRS is not abused. For its part, the agency has begun emphasizing to its employees that taxpayers are the people who foot the bills and "have the right to be treated fairly, professionally, promptly and courteously."
Your first line of defense is asking the IRS for Publication 1, which spells out your rights as a taxpayer. It is available free by calling 1-800-829-3676.
Perhaps the most common complaint about the IRS is that taxpayer questions just seem to get lost in the giant bureaucracy. If repeated queries produce no results, the IRS recommends a call to the Problem Resolution Office, whose number is published in most telephone directories under the Internal Revenue Service listing.
The Associated Press contributed to this story.