Income Tax Bulletin Board: April 16 Approaches
If you haven’t done your taxes yet, here’s a basic guide to get you going. For more information, answers to common questions, tax forms and stories, check out www.latimes.com/taxes.
Federal Taxes (IRS)
For the record:
12:00 a.m. March 18, 2001 For the Record
Los Angeles Times Sunday March 18, 2001 Home Edition Business Part C Page 3 Financial Desk 1 inches; 32 words Type of Material: Correction
IRS office--A story in Sunday’s Business section included an incorrect location for an Internal Revenue Service office. The IRS office in Oxnard has been closed and replaced by one at 751 Daily Drive, Suite 100, in Camarillo.
For the Record
Los Angeles Times Sunday March 18, 2001 Home Edition Business Part C Page 3 Financial Desk 1 inches; 18 words Type of Material: Correction
Tax payments--In Sunday’s Business section, the phone number for PhoneCharge Inc. was incorrect. The number is 888-255-8299.
* Forms: Order federal forms and publications by calling (800) TAX-FORM. Allow 10 days for delivery. If you have a fax machine, 100 of the most commonly used forms can be ordered by calling (703) 368-9694 from the telephone connected to the fax machine. Forms are also available through the Internet (see below) and at many post offices and public libraries.
* Refunds: For automated refund information, call (800) 829-4477.
n Questions: For tax questions, you have two options. You can call the IRS’ recorded tax information line at (800) 829-4477. For live telephone assistance, call (800) 829-1040. Both lines are available 24 hours a day, seven days a week.
* Internet: Tax forms and information are also available at the IRS’ Web site at www.irs.gov. Taxpayers can buy a
CD-ROM with more than 2,500 forms, instructions and other tax information for $21 on the Web or for $28 by calling (877) CD-FORMS.
* Walk-in help: IRS offices are open 8 a.m. to 4:30 p.m. Monday through Friday. (Extended hours and weekend hours vary.) Locations include:
* El Monte: 9350 E. Flair Drive, 3rd floor
* Laguna Niguel: 24000 Avila Road, Room 3202
* Long Beach: 501 W. Ocean Blvd.
* Los Angeles: 300 N. Los Angeles St., 4th floor lobby
* Oxnard: 2500 Financial Square, Suite 1
* San Bernardino: 290 N. D St., 1st floor
* San Diego: 880 Front St., Suite 1295
* Santa Ana: 34 Civic Center Plaza, 2nd floor
* Santa Barbara: 1332 Anacapa St., Suite 101
* Van Nuys: 6230 Van Nuys Blvd., Room 1-N-16
California Taxes (FTB)
* Forms and refunds: Call the state’s automated phone system 24 hours a day, seven days a week at (800) 338-0505 or (916) 845-6600.
* Questions: Use the automated system above to get answers to many of your tax questions. Live telephone assistance is available 6 a.m. to midnight weekdays and
7 a.m. to 4 p.m. Saturdays. Call (800) 852-5711. TDD line: (800) 822-6268.
* Internet: Tax forms and tax information are also available at the Franchise Tax Board’s Web site at www.ftb.ca.gov.
* Walk-in help: FTB field offices are open 8 a.m. to 5 p.m. weekdays. FTB services also will be available at IRS offices during their extended hours. Locations include:
* Long Beach: 4300 Long Beach Blvd., Suite 700B
* Los Angeles: 300 S. Spring St., Suite 5704
* San Bernardino: 464 W. 4th St., Suite 454
* San Diego: 5353 Mission Center Road, Suite 314
* Santa Ana: 600 W. Santa Ana Blvd., Suite 300
* Van Nuys: 15350 Sherman Way, Suite 100
* Ventura: 4820 McGrath St., Suite 270
* West Covina: 100 N. Barranca St., Suite 600
Electronic Filing
Tax agencies say filing electronically is a safer, faster and more accurate way to file tax returns. When combined with direct deposit, an electronically filed return can produce a refund within two to three weeks, rather than the six to eight weeks required with a paper return. Taxpayers can file electronically through a professional tax preparer or tax preparation chain, through a tax preparation Web site or by using a computer loaded with tax preparation software and connected to a modem. There may be an added fee for electronic filing. For more information, visit the IRS Web site at www.irs.gov or the FTB Web site at www.ftb.ca.gov.
Payment Options
Taxpayers who owe money to the state or federal government can pay by check, credit card or direct debit (an electronic withdrawal from a bank account). Two companies--Official Payments Corp. ([800] 2PAY-TAX) and PhoneCharge Inc. ([800] ALL-TAXX)--process credit card payments for the IRS. Official Payments also processes payments to the state. Both companies accept Discover/Novus, American Express and MasterCard and both charge a convenience fee of 2% to 3% of the billed amount (about $25 on a $1,000 tax payment). Taxpayers who file their returns electronically can pay through an automatic withdrawal from their checking or other bank account. The service is free and the direct debit can be scheduled to occur as late as April 16. The procedure, which requires the bank’s routing number as well as the account number, is included in the e-filing software.
Common Errors
Avoid the most common filing errors. Double-check Social Security numbers and make sure the names on your tax return match the names on your Social Security cards. Include Social Security numbers for all dependents claimed. Check your math. Sign and date your return. Don’t claim an exemption if you or your spouse is claimed as a dependent on someone else’s return. Send the federal return to the IRS address in Fresno or Ogden and the state return to the California Franchise Tax Board address in Sacramento.
Can’t File by April 16?
If you can’t complete your tax return on time, file Form 4868, Application for Automatic Extension, with the IRS by April 16 to get a four-month extension. (The state extension will be granted automatically when you file the form.) If you owe, you still must estimate and pay your taxes by April 16, even if you take longer to file. However, file even if you can’t pay. Penalties for failing to file are much greater than penalties for failing to pay.
Tax Software, Web Sites
The two best-selling software packages are Intuit’s TurboTax and Microsoft’s TaxCut. TurboTax (www.turbotax.com) costs about $30 for the deluxe CD version; an online version costs $14.95 for federal returns and $9.95 for state returns. TaxCut (www.taxcut.com) costs $19.95 for either the deluxe CD version or the downloadable version. All prices include electronic filing for federal returns; TaxCut offers state e-filing for $2 after mail-in rebate.
Free Tax-Preparation Options
* The elderly and people with low incomes can get free tax preparation help provided by volunteers. For more information about Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE), call the IRS at (800) 829-1040 or the state Franchise Tax Board at (800) 338-0505.
* TurboTax provides free tax preparation software at its Web site, www.turbotax.com, for people with adjusted gross incomes under $25,000. Users must have an Internet connection.
* Financial services company H.D. Vest offers free tax preparation software at its Web site, www.hdvest.com. The company may share users’ financial data with affiliates for marketing purposes. Users must have an Internet connection.
* Tax preparation site TaxAct.com offers free tax preparation software for federal returns only at www.taxact.com. Users download the software using an Internet connection.
Mark Your Calendar
* April 16: Due date for income tax returns or for extension applications. Last day for tax-deductible IRA contributions that count toward the 2000 tax year.
* Aug. 15: Deadline for submitting 2000 tax returns and owed taxes if you received an extension for April. Second extension application due.
* Oct. 15: Final deadline for submitting 2000 tax returns if granted second extension.
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--Compiled by LIZ PULLIAM WESTON