2010 tax deadline looming

BLUEFIELD — The final date to file taxes is closing in and the Internal Revenue Service said only a little more than half of the nation’s taxes have been filed at last count.

As of March 25, the IRS reported they have only received 58 percent or 82 million individual returns of the estimated 141 million tax returns this year. The IRS said this number is up 3 percent from the amount of returns they received this time last year.

According to IRS data, between 20 to 25 percent of all tax payers file their returns within two weeks of the final deadline while 7 percent of taxpayers on average seek a six-month extension to file. Approximately 500 taxes have been filed locally through the Volunteer Income Tax Assistance (VITA) program.

Michelle Williams, executive director of the United Way of the Virginias, also heads up the Mercer County VITA program, giving local taxpayers advice on filing their return and helping qualified taxpayers e-file their return. Williams said residents still have options to file and shouldn’t worry.

“One of things people have to remember is the worst thing you can do is not file your return,” Williams said. “If you think you owe money on your return, the best thing you can do is go ahead and file. The longer you wait, the more penalties and fees you can accrue and the more you might have to pay. The worst thing to do about any problem is to pretend it doesn’t exist.”

The IRS recommends anyone who cannot pay their taxes due should file their returns as promptly as possible and to pay as much as they can to lessen penalties and fees that accrue as the result of unpaid taxes.

“Sometimes, people are afraid to file because they feel they owe a lot of money, but when they actually do file, they realize it wasn’t as much as they thought,” Williams said. “If people come in and are surprised that they owe, we can give the options and advice on what to do and what has caused the debt.”

According to Williams, several things can cause an increase or decrease in the amount of money on a tax return.

“Withholding tables on taxes changed last year, so people may need to look at that to see why they aren’t getting back what they thought,” Williams said. “You need to talk to payroll about your withholding tables or talk to us or a tax service to learn about your options. Family situations can change and that can change your return. If a spouse dies or you get divorced, it can affect your return.”

For those who find they owe money, Williams said the IRS offers several payment options.

“If you don’t have the balance in full of what you owe, there are several things you can do,” Williams said. “The IRS does work out payment plans to help people who need to pay down their debt as well as can work to reduce penalties. If you owe a large amount of money you can’t pay, you can call us or the local IRS office in Sophia to discuss your payment issues.”

Though the IRS offers extensions, Williams said filing for an extension is only for those receiving money and does not give taxpayers an extension to pay taxes due.

However, those filing earlier have until April 18 to pay anything they owe.

“Filing an extension doesn’t give you extra time to pay anything you might owe,” Williams said. “There are always folks who wait until the last minute to file because they are afraid they owe. You can file taxes at any time, but you don’t actually have to pay until taxes are due on April 18. You can file your taxes in February and you don’t have to postmark a check until April 18. If someone needs to file an extension, we can help with that or they can get one of the forms off of the IRS web site. Most all of the forms you need are available there.”

For those who cannot meet the April 18 deadline, the IRS said taxpayers can file Form 4868 Application for Automatic Extension of Time to File U.S. Individual Income Tax Return forms. The form can be submitted through Free File for a six-month extension, giving taxpayers until Oct. 17, 2011 to file their returns.

Most of all, Williams said taxpayers need to organize and bring in all of their documents when filing so they can get the most out of their return.

“Make sure you have all of your documentation organized before you come in to file your return,” Williams said. “A lot of people are missing documents when they come into file and they could be losing out. Spring is a good time to check your finances, look at your credit report, and make sure things are in line. Make cleaning up your finances part of your spring cleaning. Most of all, don’t be afraid to ask for help.”

Taxpayers have an extra weekend in which to file their tax returns this year due to a government holiday, allowing them to file on Monday, April 18 rather than the usual date of April 15.

This year, several economic recovery tax credits are available to filers, such as the Making Work Pay Credit and American Recovery and Reinvestment Act (ARRA). Other tax credits have been expanded, including the American Opportunity Credit and the Earn Income Credit as well as home-buyer credits for those that entered into a binding contract by April 30, 2010 or into settlement by Sept. 30, 2010.

The IRS also offers several tips for taxpayers on their web site so they can get the most out of their return. For more information or assistance regarding taxes or to e-file, taxpayers may visit www.irs.gov.

— Contact Kate Coil at

kcoil@bdtonline.com

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