Chicago Man Finds $9 Million Winning Lottery Ticket in His Tax Folder

Irvin Przyborski went to do his taxes and discovered a $9 million winning looter ticket he purchased a year ago. If only preparing your tax returns was this awesome for everybody!

Chicago Tribune reports:

Last year, Przyborski was putting his tax papers into a file. Somehow, he said, one of the Lotto tickets he bought March 24, 2010, which turned out to be a $9 million winner, slipped into the folder. He didn't even miss it.

It wasn't until he reopened the file this month that he found the ticket, took it to the store and discovered that it was a winner. Przyborski contacted an attorney, who then called the Lottery on March 15 to claim the prize, said Lottery spokesman Tracy Owens.

More here

How to Prepare Now for the Tax Filing Deadline

The IRS officially began accepting returns for most taxpayers, and will allow all returns to be filed in just a few weeks. Although tax filing season has not officially began yet everyone, there are plenty of actions you can take now to help make preparing your return less stressful.

1. Breathe

So many taxpayers get stressed out just at the thought of preparing for tax season. Be sure to take a deep breath, and try not to get too worked up over your tax return. You have plenty of time before the April deadline, and this year you have until the 18^th. By getting started now you are going to have a much less stressful tax season.

2. Gather Tax and Financial Documents

It is a good idea to put together a designated folder for your tax and financial documents. That way, when it comes time to prepare your actual return you will have all of your information already organized. Some items you will want to include in this folder ate W2 forms from employers, 1099 forms if you worked as an independent contractor or earned income from investments, receipts from charitable contributions, mortgage interest statements, vehicle registration bills, etc.

3. Get Copies of any Missing Materials

If you are missing any documents, then you will want to get copies as soon as possible. For example, you might need to print out copies of bank or credit card statements for deduction you intend to claim, but can't seem to find the receipt.

4. Toss (or Shred) Unnecessary Documents

You don't really need every single bank statement or pay stub in your tax folder. If you do want to keep all of these documents put them into a different file. That way you will not feel overloaded with paperwork when you sit down and attempt to prepare your return in a few weeks.

5. Be on the Lookout for your Income Statements

You should expect to receive W2 and 1099 forms some time this month. Be sure that you are on the lookout, so that you do not accidentally throw them into the trash with your junk mail. If you do not get your W2 by February then you will want to contact your employer to make sure it was sent to the correct address.

6. Find your Return from Last Year

Make sure that you include your most recent return at the front of your tax file. Unless you changed jobs, or made a major tax move like purchasing a home, then you should be able to use your old return as a guide for completing you new one.

7. Verify the Exact Amounts of Charitable Deductions

The IRS has been cracking down on charitable contributions over the past couple of years. Be sure to look over your receipts and make sure that you can substantiate the market value of your contributions. Additionally, if your contributions exceed $500 you will need to complete IRS Form 8283, and if any item is valued at over $5,000 then you must obtain a written appraisal. For more information on charitable contributions check out this article on RDTC.com.

8. Anticipate Errors

There are a few common errors that many taxpayers make on their returns. Before you even begin to think about preparing your return look over some of these common mistakes, so that you are mindful of them once tax season begins.

9. Think About Hiring a Pro

If you have a complicated tax account, or simply do not want to hassle with preparing your own return then you should think about hiring a tax professional. Check out a few local tax preparation offices in your neighbor hood and make an appointment before they start getting busy.

IRS Announces New Return Preparer Application System and User Fee

In their newest press release, the IRS announced that they would launch a new online application system for tax return preparers in September.

The IRS has proposed to require all individuals who receive compensation for preparing all or substantially all of a federal tax return or claim for refund after Dec. 31, 2010, to have a Preparer Tax Identification Number (PTIN).

Under the proposed regulations, compensated tax return preparers will need to obtain, or reapply for, a PTIN and pay a user fee using this new comprehensive system, which is part of a series of steps planned to increase oversight of federal tax return preparation. Tax return preparers will be creating PTIN accounts with the IRS when they use the new system.

“This is an important first step because it lays the groundwork in our efforts to ensure the quality and integrity of professional tax return preparation, which most taxpayers rely on in one form or another,” said IRS Commissioner Doug Shulman.

Compensated tax return preparers would pay a $64.25 user fee the first year for a PTIN based on two underlying costs. The IRS proposes to collect $50 per user to pay for outreach, technology, and compliance efforts associated with the new program. And the third-party vendor will receive $14.25 per user to operate the online system and provide customer support.

Under the proposed regulations, compensated tax return preparers will be required to renew their PTINs annually and pay the associated user fee. The amount of the fee may change in future years as the actual program costs are periodically reevaluated.

Continue reading at IRS.gov…

New RDTC Corporate Office

I recently moved my Roni Deutch Tax Center corporate offices to a new location, and my incredible team took the time to put some pictures up on my Flickr.com account. Check out a couple of the pictures below, or find the full set here.

IRS announces Open House for Individuals and Small Businesses

Do you struggle to make sense of your taxes? Maybe you have questions about a notice you received or need help preparing your tax return? I have good news for you. The IRS recently announced that they will be hosting a special nationwide Open House on Saturday, May 15. Individual taxpayers and small business owners can get help with their tax returns, IRS notices and payments, audits and more. At least one IRS office will be open in every state on May 15th from 9am until 2pm. During the Open House you can speak with an IRS representative either in person or over the phone. Keep in mind though, small business owners with tax issues should probably consult a qualified tax professional.

This is the first in a series of Open House days the IRS has scheduled, with more events planned for June 5 and June 26. If you struggle with back taxes and do not want to speak to the IRS, you can always contact one of my representatives by visiting my website here.

For the location of the nearest IRS Open House this Saturday, click here.

How to Make Next Tax Season Less Stressful by Preparing Throughout the Year

April is usually a stressful month for most Americans and if you were one of the millions of taxpayers who were rushing to beat the tax deadline last week, you might want to take more action during the year to avoid the unnecessary stress next tax season. Earlier this week, the RDTC Tax Help Blog posted a great entry on how to start prepping for next tax season throughout the year. You can find a few of the tips below, or check out the full article here.

Collect and Store 2009 Tax Documents

Now that tax season is officially over it is time to store your financial records and copies of your tax returns. Depending on how the year goes, you might be able to use your tax return as a guide to prepare and file next year’s tax return.

Adjust Withholdings

If you had either a large refund, or a tax bill due this year then you might want to consider adjusting your withholdings. You can ask your employer for a W4 and have either more or less withheld from your paychecks. This can prevent an unwelcome tax bill next year.

Even if you received a refund, you should still consider adjusting your withholdings. By giving the IRS more money out of each of your paychecks than necessary, you are basically giving the federal government an interest free loan. Additionally, by changing your withholdings you can get more money every pay period.

Continue reading at RDTC.com…

9 Very Last Minute Tax Preparation Tips

April 15^th is just a few hours away, and millions of Americans are rushing to get their tax returns filed on or before this Thursday. To help any of my readers who are trying to beat the deadline, I have put together this list of tips to get your tax returns prepared on time.

1. Use your Tax Return from Last Year as a Guide

Before you start working on your new tax return you should go and find your tax return from last year. Unless your financial situation has changed drastically over the past year you should be able to use your old return as a guide for completing your new return.

2. To Itemize or Not?

Itemizing your return opens up the door for dozens of tax deductions, although taking the standard deduction is easier, itemizing your deductions may be more tax beneficial to you. If you do not know if you would benefit from itemizing or the standard deduction then you might want to speak with a qualified tax professional.

3. Consider an IRA to Lower your Liability

If you are looking for a last minute way to lower your adjusted gross income from last year, then you should consider making a contribution to a traditional IRA. As this article on the RDTC Tax Help Blog explains you can make retroactive contributions to an IRA up until the tax deadline to lower your taxable income for 2009.

4. Making Work Pay Credit

This year there is a new $400 Making Work Pay Credit for most taxpayers who worked during the last year. You will need to complete Schedule M to calculate the value of your credit. For more information checkout this IRS press release from earlier today.

5. Be Honest and Review Everything Twice

One of the most important rules of preparing a tax return is to always be honest. The repercussions you may receive for lying to get a deduction you do not qualify for could be a lot more than you would have saved. You should also give yourself time to thoroughly review your return for errors before filing.

6. E-Filing your Return

You should always try to e-file your tax return, unless you have a legitimate reason not to. E-filing is fast, and can get your return to the IRS in a few minutes. Plus, you can avoid both the drive to the post office and having to pay for shipping.

7. Direct Deposit / Splitting your Refund

When you file your return, even if you do not e-file, you can select to have your tax refund directly deposited into your bank account. You can even have the refund split between multiple different accounts.

8. Consider an Automatic Extension

If you are not quite ready to file – for any reason – you should file for an automatic extension from the IRS. There are numerous reasons you may feel the need to file an extension, but any reason is better than not filing your return at all. However, if you are going to owe the IRS money then you still need to have your payment to them by the 15th.

9. Get Professional Help

If you are confused, or worried about getting your return completed by the deadline then you might want to enlist professional help. However, if you are going to get help from a tax preparer then you will want to make an appointment as soon as possible. Even if you do file an extension, you should make an appointment to get your return completed shortly after the tax deadline as many tax preparation offices close during the off-season.

IRS Suspends Tax Practitioner for Preparing False Tax Returns

Last week, the IRS published a new press release announcing that, “a Certified Public Accountant has been suspended for twelve months from practice before the Internal Revenue Service by the Office of Professional Responsibility for providing false or misleading information in connection with the preparation of his clients’ tax returns.”

“Practitioners have a duty both to their clients and to the system to insure taxpayers are complying with tax laws and filing complete and accurate tax returns,” Karen L. Hawkins, Director of the Office of Professional Responsibility said.

Robert A. Loeser, a certified public accountant from Houston, Texas, assisted his clients to lower their tax bills by claiming false business expenses on tax returns he prepared.

For no legitimate business purpose, Loeser’s clients were advised to forward funds from their businesses to two corporations Loeser controlled. The corporations then rebated the funds to his clients. Loeser prepared the clients’ books and business tax returns expensing and deducting the entire amounts that were paid to the corporations.

The IRS alleged Loeser violated Circular 230 by giving false or misleading information to the Department of Treasury and the IRS.

Tax Prep Checklist - 10 Things to Bring to your Tax Professional

If you are like the majority of Americans, you are probably going to seek the help of a tax professional to prepare and file your income tax return. A few decades ago, most taxpayers filed their own returns. However, the tax code gets more and more complicated each year and as a result millions of taxpayers turn to a tax professional. However, before you leave your house for your tax preparation appointment you will want to bring the following ten items with you:

1. Identification

First and foremost, bring your social security card and a valid drivers license or government issued identification. If you are married then both you and your spouse will need these documents. Finally, if you have children you will also want to have their social security cards on hand.

2. Last Years Tax Return

It is always a good idea to bring your tax return from last year with you. If you are visiting a new tax preparer, they will be able to collect a lot of the information they need about you from the old return. They also might be able to review the old return for errors. If you had your return prepared by someone else you should also look for your receipt. As I will explain this further in number 8.

3. Documentation from ALL Sources of Income

You will need to have documentation of all sources of income from the past year. Wage earning employees will need to bring W-2s from all sources of employment. If you received unemployment compensation then you will need to bring the 1099-G form, which you will get in the mail. Depending on your own financial situation, you might also need to bring documentation of the following sources of income: pension and annuities, alimony received, jury duty pay, gambling winnings, etc.

4. Self Employment Documents

If you are a self-employed individual or sole proprietor you will need to bring 1099 forms from all sources of income. It is also a good idea to put together a profit and loss statement before your appointment so your preparer does not have to add up all your expenses during the appointment. You will also need to bring vouchers for any estimated payments made and copies of health insurance bills.

5. Financial Gains or Losses

Bring along forms and documentation related to all of your financial gains or losses over the past year. This includes interest income statements (1099-INT), proceeds from broker transactions (1099-B), retirement plan distributions (1099-R), etc.

6. Mortgage and Real Estate Taxes

If you own your house, you need to bring a few different documents to ensure you take advantage of all credits and deductions available to homeowners. If you bought a new house in 2009, you need to bring your closing documents. In addition to the first-time homebuyer’s credit, if you are eligible, you will also be able to deduct property taxes and mortgage interest paid. You should receive IRS Form 1098 from your mortgage company, that will give you a total of all interest paid during the year.

7. Automobile and DMV Documents

If you bought a new car in 2009, you might qualify for the vehicle sales tax deduction. If so, bring documentation of the taxes you paid when you purchased the vehicle. Additionally, you should bring proof of any DMV or registration fees you paid for your vehicle.

8. Deductible Expenses Receipts

If you are not going to claim the standard deduction, you will want to bring proof of any deductions of which you think you might qualify. This includes, but is not limited to: charitable contribution receipts, any non-reimbursed expenses incurred while working or volunteering, job hunting expenses, alimony payments, etc. Tax preparation is deductible, so if you had your tax return professional prepared last year bring that receipt as well.

9. Additional Deduction Documentation

In addition to receipts for the expenses listed in number 8, there are a few other deductions that you might qualify for. First of all, you should bring documentation of any state and local income taxes paid. You should also bring records of any IRA or retirement account contributions. Also, if your medical expenses totaled more than 7.5% of your adjusted gross income then you will want to bring documentation of the medical costs.

10. Anything Else your Tax Professional Wants

A few days before your tax appointment it is probably a good idea to call ahead and ask your tax preparer what documents you should bring. If you do all these things, you’ll be 100% ready when your appointment rolls around.

Questions for the Tax Lady: January 25th, 2010

Check out the following new Questions for the Tax Lady answers and feel free to ask me questions through one of the links below. You can send me an email, direct message or @ reply, and I will do my best to get an answer for you!

Question #1: Roni, does your law firm offer tax preparation services?

No, Roni Deutch, A Professional Tax Corporation does not offer tax preparation services. However, there are dozens of Roni Deutch Tax Center locations across the country offering tax preparation, in addition to a handful of other financial services. To find the Roni Deutch Tax Center location nearest you, click here or call 1-800-230-1083.

Question #2: What are the income limits for the 2010 home buyer’s credit?

Income limits for eligible homebuyers for the 2010 tax year are $125,000 for single buyers and $225,000 for couples. This was a significant increase from the 2009 credit, which had $75,000 and $150,000 limits.

Feds Sue Colorado Tax Preparer, Alleging $55M in Bogus Refund Claims

From Bizjournals.com:

The U.S. Justice Department has sued a Colorado tax preparer, alleging he made at least 141 claims for fraudulent refunds for clients totaling more than $55 million.

In the civil complaint filed Tuesday in U.S. District Court in Denver, federal authorities seek an injunction barring Curtis L. Morris of Elizabeth, and his company, Numbers and Beyond, from preparing and filing tax returns.

Morris has not been charged with a crime.

According to the complaint, Morris filed fraudulent refund claims on behalf of clients in Colorado, California, Arizona, and New Mexico in 2008 and 2009.

It says the returns Morris prepared for the customers "fabricate the amount of federal income tax withheld," and that he sometimes filed false Forms 1099-OID with the IRS to support fraudulent claims.

"In reality, Morris' scheme fraudulently reports that tax was withheld on behalf of his customers and then claims refunds based on that non-existent withholding," the complaint said.

One bogus refund request totaled $1.7 million, the complaint says. Officials said the IRS issued $1.9 million in erroneous refunds as a result of Morris' filings.

October Tax Talk Today: What You Should Know About ARRA 2009

From The IRS.gov Newsroom:

IR-2009-86, Sept. 30, 2009

WASHINGTON — Experts from the Internal Revenue Service and the tax preparation industry will discuss the many tax credits, deductions and incentives contained in the American Recovery and Reinvestment Act for 2009 on the Oct. 6 Internet airing of Tax Talk Today.

The American Recovery and Reinvestment Act contained benefits for:

* First-time homebuyers

* People purchasing new cars

* Energy efficient home upgrades

* Parents and students paying for college

The October program for qualifies for one CPE credit for tax professionals. To access the web cast at no charge, viewers can register online at Tax Talk Today.

Panelists include: Virginia M. Tarris, IRS tax law specialist; Amy Stanton, IRS program manager; CPA Gerard H. Schreiber, Jr, partner, Schreiber and Schreiber; and CPA and attorney Donna Rodriguez, managing partner, Donna L. Rodriguez, PLLC. The moderator is Les Witmer.

Tax Talk Today is a free, live, interactive webcast aimed at educating tax professionals on the most contemporary and complex tax issues. Viewers are encouraged to submit questions during the live broadcast. Tax professionals in need of continuing education credits should select Continuing Education at the Web site for more information.

They can view Tax Talk Today with Windows Media Player and Real Player; both are free software that may already be installed on your computer. If not, click the link for Installing System Software to view Internet Broadcast under “How to View.”

Subscribers can view live web casts as well as archived programs; listen to audio podcasts or read show transcripts through Dec. 31, 2009. Subscribers also can order audio and video recordings. A transcript and audio of the July 14 Webcast, “OPR: A Balanced Approach,” is now available.

Prepare Audit-Ready Tax Returns

Last week a new article I penned for WomenEntrepreneur.com titled “Prepare Audit-Ready Tax Returns: Getting audited is unlikely, and you can reduce the chances further by steering clear of IRS 'red flags' was published in their Money and Finance section. In the column I explain the three different types of audits the IRS conduct, and how you can prepare returns that will stand up to an audit. Check out the introduction of the article below, or read the full version here.

"Audit."

It just might be the most terrifying word in the English language. It can strike fear in the heart of even the most diligent taxpayer. But listen up, ladies. Audits are not the life-shattering events everyone thinks they are. The more you know about the audit process, the less you have to fear.

An audit is simply the process of the IRS closely reviewing your tax return and backup documentation as part of the agency's compliance checking. Think of it as a government quality-control tool, much like the quality-assurance checking you do in your own business.

Prepare for Hurricanes by Safeguarding Tax Records

Earlier in the week the IRS posted this press release recently, urging taxpayers in hurricane areas to prepare for hurricanes by putting their tax records in a safe place. They are warning taxpayers that the 2009 hurricane season is now underway, and have put together a simple list of ways you can prepare.

Create a Backup Set of Records Electronically

Taxpayers should keep a set of backup records in a safe place. The backup should be stored away from the original set.

Keeping a backup set of records –– including, for example, bank statements, tax returns, insurance policies home, etc. –– is easier now that many financial institutions provide statements and documents electronically, and much financial information is available on the Internet. Even if the original records are provided only on paper, they can be scanned into an electronic format. With documents in electronic form, taxpayers can download them to a backup storage device, like an external hard drive, or burn them to a CD or DVD.

Document Valuables

Another step a taxpayer can take to prepare for disaster is to photograph or videotape the contents of his or her home, especially items of higher value. The IRS has a disaster loss workbook, Publication 584, which can help taxpayers compile a room-by-room list of belongings.

A photographic record can help an individual prove the market value of items for insurance and casualty loss claims. Photos should be stored with a friend or family member who lives outside the area.

Update Emergency Plans

Emergency plans should be reviewed annually. Personal and business situations change over time as do preparedness needs. When employers hire new employees or when a company or organization changes functions, plans should be updated accordingly and employees should be informed of the changes.

Tax Preparation Licensing

What’s the difference between a hair stylist and a tax preparer? Every state requires hair stylists to be licensed, but most states let anyone call him or herself a tax preparer. Sound a little frightening? You bet it is. Because here’s the bottom line: taxpayers are ultimately responsible for their tax returns, not the person who prepared them.

Now, this is not the case in every state. California and Oregon have strict licensing requirements for anyone charging money for tax preparation. And you know what the IRS found? When people in Oregon are audited, their tax returns require far less adjustments than taxpayers in states without licensing requirements. Meaning, Oregonians’ tax returns are more accurate. The IRS attributes this to higher quality tax preparation.

If you are not 100% sure you can do your taxes correctly, finding a qualified professional is paramount to keeping compliant with tax laws. A simple mistake here and there can cause big trouble since the IRS heavily penalizes many “simple mistakes.” And unlike other service industries, if your tax preparer makes mistakes, or is downright dishonest on your return, they are not held accountable. Instead the taxpayer is on the hook for every penalty, fine, and any interest assessed.

Sounds a little ridiculous, right? Well, I agree. And so does the IRS, evidently. The IRS announced plans to introduce tax preparer regulations to President Obama. And I am thrilled the IRS is finally stepping up to help protect taxpayers from unlicensed preparers. While these new regulations are only in the planning stages right now, I would like to throw my unabashed support behind them.

Filing your taxes is probably the most important financial transaction you make every year. These new regulations would ensure every single taxpayer would receive competent tax preparation.

Sparks To Flame Radio Show

I recently made an appearance on the “Sparks to Flame” radio show, hosted by Sheryl Parks, and explained to small business owners how to prepare for tax season. I also gave advice on what to do if you get audited. To hear all of my tips, you can listen to an mp3 of the full interview by clicking here.

NFL Veteran Opens Tax Preparation Business

Lee and Rachel Woodall, Roni Deutch Tax Center® franchisees in Delaware, were recently featured in an article in the Delaware Business Ledger. The story discusses how Lee went from being a player on the San Francisco 49ers to owning a tax preparation business. Below is a snippet from the article, but you can read the full text by clicking here.

A former NFL player is opening a Newark-area franchise for the franchised tax service led by a California tax lawyer known for her TV commercials.

Lee Woodall, who went to two pro bowls, played nine seasons with the San Francisco 49ers, Carolina Panthers, and Denver Broncos, said he was attracted to the Roni Deutch Tax Center franchise based on its name credibility and ability to help professional athletes assimilate to life after sports by providing a recession-proof business opportunity that fits the lifestyle of the athlete. According to a release, the business is expected to operate on a year-around basis.

“As a former NFL player, I know first-hand that there are no organizations to help the player transition to life after football,” says Woodall. “By teaming with the Roni Deutch Tax Center, I plan to educate former professional athletes about this tax franchise opportunity because its business model closely matches their way of life. The high motivation, understanding of life’s ups-and-downs, and passion for competition, combined with elements of team work, dedication, training, and a familiar six month work schedule, make former athletes exceptional candidates for tax franchise owners.”

“We are thrilled to bring a Roni Deutch Tax Center location to Newark and become ingrained in the community as the go-to place for tax preparation and support,” said Roni Deutch. “Lee and Rachel Woodall exemplify exactly what we want in franchise partners – a professional tax center owner/operator and genuine people who have made a commitment to the community.”

Top 10 Most Common Tax Prep Mistakes

Between piles of paper work lists of numbers to crunch, it is not hard to miss a thing or two when you are preparing your federal and state tax returns. However, some mistakes could lead to the loss of a valuable deduction, or even worse, an IRS penalty. To help the readers of my blog this tax season, I have put together this list of the top 10 most common tax prep mistakes.

1. Not Checking Math

Before sending in those forms, go over your math a few times to make sure your return is 100% accurate. You could get fired, or even audited if you add an additional zero somewhere, or put a decimal point in the wrong spot. Crunching the numbers one last time is more than worth taking such a risk.

2. Not Listing All Jobs

If you worked in more than one job this year, you need to make sure that you list them all on your tax return. If you do forget to list any income, you could be accused of tax evasion. Rather than go through all the hoops that tax evasion will put you through, make sure to list any and all sources of employment, no matter how long or short they were.

3. Incorrect or Missing SSN

It is imperative that you put your social security number (SSN) on your tax forms. Even more importantly, the number that you list must be correct. In addition to correctly listing your SSN, if you want to be extra cautious, you can go a step further and also write your social at the top of each page. This way, if the IRS misplaces a form, they will know just who it belongs to.

4. Charity Misinformation

Making a charitable donation is more than good for your karma; it is good for reducing your tax liability. However, the IRS is becoming stricter with contributions, and if you forget to list the charity correctly on your tax forms then you will receive no deductions. It is also important to list the correct contact information for the charity, so the IRS will not think that you are trying to get away with a false claim.

5. Listing Wrong Marital Status

Even if you were divorced fairly recently, it is still necessary to list your current marital status. The IRS is going to get suspicious when your ex-spouse lists themselves as single and you do not. Although it is not technically tax evasion, there could be financial penalties involved if the IRS chooses to audit you.

6. Miscalculated Childcare Costs

Children and students of all ages require large amounts of funding for everything from childcare to education costs. Fortunately, the IRS allows you to deduct expenses spent on childcare. However, these credits have many qualifications, so make sure you are fully qualified before you submit your forms.

7. Forgetting to List Unearned Income

Believe it nor not, the IRS already knows how much unearned income you have made this year. In addition to forms like 1099, the IRS also has the ability to monitor your bank account activity. To avoid penalties and fines, keep good track of your unearned income throughout the year and list it all on your tax return.

8. Missing the Deadline

Missing the April 15th deadline is not the worst mistake you could make... unless you also forget to file for an extension. An extension gives you an additional 6 months to file your return forms, at no additional costs.

9. Not Using IRS Mail Material

The IRS sends you pre-addressed envelopes for a reason; they have the correct info already on them. It also makes the return sorting process much easier since they addresses are clear and easy to read. Writing your own mail material could lead to a longer return time or even the chance of it getting sent to the wrong place and lost in the mail. This one's easy to follow, just keep and use their free mail material.

10. Missing Signature

It is surprising this mistake even makes the list, but sadly it is true. For some reason when people are flustered over crunching numbers and attaching receipts, they forget important details like signing the documents—possibly because the signature and date is often the last are often the last things to do. However, your signature is what makes it genuinely yours, and the IRS will not take your return without it.

End-of-Year Tax Planning Takes Election Year Twist

Earlier in the week, I was quoted in an article released by the Associated Press about end of the year tax planning. Below is a quote form the article, including my tip!

Heading into the holidays it's likely that you're going to be thinking a lot about money. And this time of year tax advisers like to remind us that there are ways to minimize our tax bill next April. But with an economic downturn in full swing and a new president waiting in the wings, that typical advice is coming up against a range of uncertainties this year.

Since President-elect Barack Obama has pledged to raise taxes for families making more than $250,000 and increase capital gains taxes, for instance, she said some of the usual year-end planning advice might soon be reversed. As 2008 draws to a close, here are some step you can take to minimize your taxes.

GET ORGANIZED

The first step in the planning process is to make sure that your records are organized and up to date, said Roni Deutch, a California-based tax adviser. "Without records and without substantiating your deductions, you have no deductions," she warned.

Read the rest of the article at Forbes.com

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