Smart TaxesSmart Taxes

Most records can be safely discarded after three years, but you'll want to keep some types of paperwork longer. Yes, you can keep those files electronically.

By MSN Money partner Apr 27, 2012 3:40PM

This post is by Kelly Phillips Erb at Forbes.com.

 

You’d think that the week after Tax Day would be quiet, but it’s not. Once tax time has come and gone, taxpayers are not completely off the hook. You’ll want to keep records and documentation on hand in the event that the IRS comes calling.

 

Here are some tips to help you figure out which records to keep and how long to keep them:

 

The statute of limitations on tax misdeeds varies, depending upon the type of lapse. The rules differ for civil, criminal and fraudulent actions.

By MSN Money partner Apr 25, 2012 6:22PM

This post is by Laura Saunders of The Wall Street Journal.

 

http://online.wsj.com/home-page?mod=msn_freeIs a tax sin haunting you?

 

Maybe you paid a baby sitter under the table, or "forgot" to declare income, or deducted personal expenses as business costs. Perhaps you didn't know a large tax or a form was due and found out only later. Maybe you never filed at all.

 

Whatever the misdeed, it raises an urgent question: When can you breathe easy? When is your offense so old and cold that the Internal Revenue Service won't care -- or can't?

 

If you made a mistake, you can wait for the IRS to track you down. But it's better to file an amended return as soon as possible.

By MSN Money partner Apr 23, 2012 7:30PM

This post is by Robert W. Wood of Forbes.com.

 

You forgot to report some income on your 1040 or just got a corrected Form 1099 or K-1 in the mail. What should you do? Here are 5 tips for amending returns.

 

1. Amended returns aren’t mandatory. You might be surprised to find you are not obligated to file an amended return, even though tax advisers may tell you it’s a good idea. That’s because the IRS will probably send you a bill based on the revised Form 1099 or K-1 once IRS computers match that form against your return.

 

Amended returns are not mandatory even if something happens after you file that makes it clear your original return contains mistakes. Ask if the return you filed was accurate to your best knowledge when you filed it. If it was, you are probably safe in not filing an amendment.

 

The IRS will still accept your return, but you may have to pay penalties for filing late and for paying taxes late.

By Teresa Mears Apr 19, 2012 4:30PM

Tax Day has come and gone, and we hope you filed your tax return, or at least requested an extension.

 

If you didn't get around to filing, the federal government is not going to haul you away in chains.

 

However, the Internal Revenue Service would still like to see your return, and the sooner the better. There is a penalty for failing to file a return, but the closer you are to the deadline, the smaller that penalty will be.

 

If you're due a refund, there is no penalty for filing late, but if you don't file within three years, you lose your refund.

 

The IRS offers a number of options, from accepting credit cards to setting up payment plans. The key is to make arrangements, not just ignore your tax bill.

By MSN Money partner Apr 17, 2012 1:29PM

This post is by Kay Bell of Bankrate.com.

 

If this year's tax filing deadline will be a "pay" day for you and you don't have the cash, the Internal Revenue Service gives you several payment options.

 

First, even if you can't pay your tax bill, go ahead and file your return on time. This way, you'll avoid the IRS' failure-to-file penalty of 5% per month (up to a maximum of 25%) of your balance due. You'll still face that penalty each month your bill is outstanding, but it's only 0.5% of the amount you owe.

 

If writing that big check to the US Treasury leaves a sour taste in your mouth, you might want to take advantage of one of the free sweet (and other) treats offered April 17.

By MSN Money partner Apr 16, 2012 4:58PM

This post is by Laura Daily and Patti Roth at Living on the Cheap.

 

It wasn't long ago that Tax Day was just for paying up what you owe to Uncle Sam. Then businesses started offering a few freebies to help ease the sting of the pain in your wallet.

 

Now we can get all kinds of deals and free treats for Tax Day.  To help you keep track, we’ve put together a list of Tax Day promotions.

 

Most are available April 17, but a few are good all week. 

 
Tags: taxes

Expect to hear a lot of political rhetoric this election year. But how many taxpayers and businesses would really be affected by the proposed tax increase?

By MSN Money partner Apr 16, 2012 2:18PM

This post is by Alan Fram of The Associated Press.

 

President Barack Obama's proposal to impose a "Buffett rule" tax on the rich is generating enormous political wattage, but the plan itself would directly affect only a tiny fraction of Americans.

 

Only around 210,000 taxpayers -- a bit over 1 of every 1,000 -- would face higher federal taxes if the measure were enacted, according to an estimate by one respected bipartisan research group.

 

In addition, while Republicans say the plan would be a job killer, only a small proportion of businesses would potentially be subject to the tax, according to data from a 2011 Treasury Department study. These firms make disproportionately large amounts of money, but many of them don't employ any workers.

 

Republicans, calling the Buffett rule a political sideshow designed to distract voters from the economy's problems, seem certain to round up enough votes to block the bill when the Democratic-run Senate votes on it Monday. But Democrats are eager to hold repeated votes on it this election year to demonstrate that they favor economic equality while Republicans prefer coddling the wealthy, so it's unlikely to disappear soon.

 

You get an extra 2 days to do your taxes this year, but you may not have the option of the late-night run to the post office.

By Teresa Mears Apr 13, 2012 6:38PM

Are you in a panic that you won't have your taxes done by midnight Sunday, April 15?

 

Take a deep breath, and let go of your worries.

 

You should still be working on your taxes, but you have two more days.

 

Though tax deadline traditionally falls on April 15, taxpayers have two more days to do their taxes this year. That's because April 15 falls on a Sunday and April 16 is Emancipation Day, which is a holiday in the District of Columbia.

 

That means you have until midnight Tuesday, April 17, to file your tax return. Most states have the same deadline.

 

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