John Petosa, CPA, JD, professor of accounting practice at Syracuse University's Martin J. Whitman School of Management has some tips for those who are filing their taxes in October.
1. Taxpayers should make sure that they file even if they can't pay the amount due. Failing to file carries criminal sanctions, while an inability to pay does not. File and generally, based on the amount due, the taxpayer can make an installment arrangement with the IRS to pay the balance due.
2. Review all information carefully. When trying to file in a hurry, often mistakes with social security numbers, etc, can occur. Try as best as possible to file an accurate return.
3. Take advantage of contributions to IRA's or other retirement options available to lower the overall tax cost.
4. If you are not filing electronically, make sure to send the return with a return receipt notice to provide proof the return was filed timely. Filing late carries penalties that can approximate 10% of the tax due. having proof that you file on or before the deadline can avoid this mistake.
For more information or to speak with Professor Petosa, contact Kerri Howell, [email protected] or 315-443-3671.
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