Prepare Yourself!

It seems that every year the Fall weather delivers cooler temperatures along with an increase in scheduling as various social engagements and holidays begin to stack up. Kids are back at school, so there are sporting practices and games to attend. Just as you settle into this new schedule demand the holidays begin to pop up on the calendar. First its Halloween, then Thanksgiving and before you can blink the Season's Greetings are upon you. Take a deep breath and then prepare yourself... for tax season! As soon as you finish packing up the holidays it will be time to start thinking about gathering receipts and organizing your files. To help lower your frustration levels during the process, be sure to check out the information below (and future posts) for helpful hints and information about tax forms.

Heads Up #1

The IRS has determined that they can save around $10 million per year with the elimination of tax forms mailing. Studies indicate that more than 96 million people filed their returns through an online service last year. Around 20 million filed paper returns through paid tax preparers. What does this mean? Most of the tax forms that the IRS put in the mail went unused which means they wasted a lot of money on postage. What does this mean for you? If you prefer the old school method of paper filing and do not currently use a tax preparer, you will have to get your tax forms from the IRS website, IRS offices or selected libraries and post office locations. 

Heads Up #2

Do you use a tax preparer to avoid IRS induced headaches? If so, be sure that they are official! The IRS now requires tax preparers to register for a PTIN (Preparer Tax Identification Number). Having this registration requirement is intended to ensure that the people preparing your taxes really do know what they are doing so that you don't get a visit later. 

If you are a tax preparer and do not currently have a PTIN you can complete the online application via the IRS.gov website. Just go to the Tax Professionals page and follow the instructions. Beware, however, that it will cost you $64.25 to receive this identification number! Once you have the number, it is valid for 1 year. 

Already have a PTIN? You may still need to complete the registration process to be sure that you are included in the new set up. Odds are you will receive the same number so that you don't have to memorize new digits, but just to be safe take a look at the IRS site.

Hope this helps and be sure to check back next week for additional tax form information...