How to Avoid Common
Mistakes
Mistakes may delay your refund or result in notices being
sent to you.
- Make sure you entered the correct name and social security
number (SSN) for each dependent you claim on line 6c. Check
that each dependent's name and SSN agrees with his or her
social security card. Also, make sure you check the box
in column (4) of line 6c for each dependent under age 17
who is also a qualifying child for the child tax credit.
- Check your math, especially for the child tax credit,
earned income credit (EIC), taxable social security benefits,
total income, itemized deductions or standard deduction,
deduction for exemptions, taxable income, total tax, Federal
income tax withheld, and refund or amount you owe.
- If you are taking the child tax credit or additional
child tax credit, make sure you entered any advance child
tax credit payment you received (before offset) in 2003
on line 2 of your Child Tax Credit Worksheet. Do
not enter your advance payment anywhere on your
tax return.
- Be sure you use the correct method to figure your tax.
See the instructions for line 41 that begin on page 36.
- Be sure to enter your SSN in the space provided on page
1 of Form 1040. If you are married filing a joint or separate
return, also enter your spouse's SSN. Be sure to enter your
SSN in the space next to your name. Check that your SSN
agrees with your social security card.
- Make sure your name and address are correct on the peel-off
label. If not, enter the correct information. If you did
not get a peel-off label, enter your (and your spouse's)
name in the same order as shown on your last return. Check
that your name agrees with your social security card.
- If you are taking the standard deduction and you checked
any box on line 36a or 36b or you (or your spouse if filing
jointly) can be claimed as a dependent on someone else's
2003 return, see page 34 to be sure you entered the correct
amount on line 37.
- If you received capital gain distributions but were not
required to file Schedule D, make sure
you check the box on line 13a. Also make sure you entered
any post-May 5 capital gain distributions on line 13b.
- If you are taking the EIC, be sure you used the correct
column of the EIC Table for your filing status and the number
of children you have.
- Remember to sign and date Form 1040
and enter your occupation(s).
- Attach your Form(s) W-2 and other required forms and schedules. Put all
forms and schedules in the proper order. See Assemble
Your Return on page 59.
- If you owe tax and are paying by check or money order,
be sure to include all the required information on your
payment. See the instructions for line
72 on page 57 for details.
What
Are Your Rights as a Taxpayer?
You have the right to be treated fairly, professionally,
promptly, and courteously by IRS employees. Our goal at the
IRS is to protect your rights so that you will have the highest
confidence in the integrity, efficiency, and fairness of our
tax system. To ensure that you always receive such treatment,
you should know about the many rights you have at each step
of the tax process. For details, see
Pub. 1.
Innocent
Spouse Relief
You may qualify for relief from liability for tax on a joint
return if (a) there is an understatement
of tax because your spouse omitted income or claimed false
deductions or credits, (b) you are divorced,
separated, or no longer living with your spouse, or (c)
given all the facts and circumstances, it would not be fair
to hold you liable for the tax. See Form
8857 or Pub. 971
for more details.
Income
Tax Withholding and Estimated Tax Payments for 2004
If the amount you owe or the amount you overpaid is large,
you may want to file a new Form W-4 with your employer to
change the amount of income tax withheld from your 2004 pay.
For details on how to complete Form
W-4, see Pub 919.
In general, you do not have to make estimated tax payments
if you expect that your 2004 Form 1040 will show a tax refund
or a tax balance due the IRS of less than $1,000. If your
total estimated tax (including any household employment taxes
or alternative minimum tax) for 2004 is $1,000 or more, see
Form 1040-ES. It
has a worksheet you can use to see if you have to make estimated
tax payments. For more details, see Pub.
505.
Do Both
the Name and SSN on Your Tax Forms Agree With Your Social
Security Card?
If not, certain deductions and credits may be reduced or
disallowed, your refund may be delayed, and you may not receive
credit for your social security earnings. If your Form
W-2, Form 1099, or other tax document
shows an incorrect SSN or name, notify your employer or the
form-issuing agent as soon as possible to make sure your earnings
are credited to your social security record. If the name or
SSN on your social security card is incorrect, call the Social
Security Administration at 1-800-772-1213.
How
Do You Make a Gift To Reduce the Public Debt?
If you wish to do so, make a check payable to “Bureau
of the Public Debt.” You can send it to: Bureau of the
Public Debt, Department G, P.O. Box 2188, Parkersburg, WV
26106-2188. Or you can enclose the check with your income
tax return when you file. Do not add your gift to any tax
you may owe. See page
57 for details on how to pay any tax you owe.
| 
|
If you
itemize your deductions for 2004 you may be able to
deduct this gift. |
Address
Change
If you move after you file, always notify the IRS of your
new address. To do this, use Form
8822.
How Long Should Records Be Kept?
Keep a copy of your tax return, worksheets you used, and
records of all items appearing on it (such as Forms
W-2 and 1099) until the statute
of limitations runs out for that return. Usually, this is
3 years from the date the return was due or filed, or 2 years
from the date the tax was paid, whichever is later. You should
keep some records longer. For example, keep property records
(including those on your home) as long as they are needed
to figure the basis of the original or replacement property.
For more details, see Pub.
552.
Amended
Return
File Form 1040X
to change a return you already filed. Generally, Form 1040X
must be filed within 3 years after the date the original return
was filed, or within 2 years after the date the tax was paid,
whichever is later. But you may have more time to file Form
1040X if you are physically or mentally unable to manage your
financial affairs. See Pub.
556 for details.
Need
a Copy of Your Tax Return?
If you need a copy of your tax return, use Form
4506. If you want a free printed copy of your account,
call us. See page 13
for the number.
Death
of a Taxpayer
If a taxpayer died before filing a return for 2003, the taxpayer's
spouse or personal representative may have to file and sign
a return for that taxpayer. A personal representative can
be an executor, administrator, or anyone who is in charge
of the deceased taxpayer's property. If the deceased taxpayer
did not have to file a return but had tax withheld, a return
must be filed to get a refund. The person who files the return
must enter “DECEASED,” the deceased
taxpayer's name, and the date of death across the top of the
return. If this information is not provided, it may delay
the processing of the return.
If your spouse died in 2003 and you did not remarry in 2003,
or if your spouse died in 2004 before filing a return for
2003, you can file a joint return. A joint return should show
your spouse's 2003 income before death and your income for
all of 2003. Enter “Filing as surviving spouse”
in the area where you sign the return. If someone else is
the personal representative, he or she must also sign.
The surviving spouse or personal representative should promptly
notify all payers of income, including financial institutions,
of the taxpayer's death. This will ensure the proper reporting
of income earned by the taxpayer's estate or heirs. A deceased
taxpayer's social security number should not be used for tax
years after the year of death, except for estate tax return
purposes.
Claiming a Refund for a Deceased Taxpayer
If you are filing a joint return as a surviving
spouse, you only need to file the tax return to claim the
refund. If you are a court-appointed representative, file
the return and attach a copy of the certificate that shows
your appointment. All other filers requesting the deceased
taxpayer's refund must file the return and attach Form
1310.
For more details, use TeleTax
topic 356 (see page 11) or see Pub.
559.
Parent
of a Kidnapped Child
The parent of a child who is presumed by law enforcement
authorities to have been kidnapped by someone who is not a
family member may be able to take the child into account in
determining his or her eligibility for the head of household
or qualifying widow(er) filing status, deduction for dependents,
child tax credit, and the earned income credit (EIC). For
details,use TeleTax
topic 357 or see Pub.
501 (Pub. 596 for
the EIC).
Other
Ways To Get Help
Send or E-Mail Your Written Tax Questions
to the IRS
You should get an answer in about 30 days. If you do not
have the mailing address, call us. See page
13 for the number. Or email your questions to us through
the IRS website at www.irs.gov/help and click
on Tax Law Questions. Do not send questions
with your return.
Free Help With Your Return
Free help in preparing your return is available nationwide
from IRS-trained volunteers. The Volunteer Income Tax Assistance
(VITA) program is designed to help low-income
taxpayers and the Tax Counseling for the Elderly (TCE)
program is designed to assist taxpayers age 60 or older with
their tax returns. Some locations offer free electronic filing
and all volunteers will let you know about the credits and
deductions you may be entitled to claim. For details, call
us. See page 13
for the number. If you received a Federal income tax package
in the mail, take it with you when you go for help. Also take
a copy of your 2002 tax return (if available), all your Forms
W-2 and 1099 for 2003, any other
information about your 2003 income and expenses, and the social
security number (or individual taxpayer identification number)
for your spouse, your dependents, and yourself. Or
to find the nearest AARP
Tax-Aide site, visit AARP's website at www.aarp.org/taxaide
or call 1-888-227-7669.
Everyday Tax Solutions
You can get face-to-face help solving tax problems every
business day in IRS Taxpayer Assistance Centers. An employee
can explain IRS letters, request adjustments to your account,
or help you set up a payment plan. Call your local Taxpayer
Assistance Center for an appointment. To find the number,
go to www.irs.gov or look in the phone book
under “United States Government, Internal Revenue Service.”
On-Line Services
If you subscribe to an on-line service, ask about on-line
filing or tax information.
Large-Print Forms and Instructions
Pub. 1614 has large-print copies of Form
1040, Schedules A, B, D, E, EIC, and R, and Forms 1040-V and
8812, and their instructions. You can use the large-print
forms and schedules as worksheets to figure your tax, but
you cannot file them. You can get Pub. 1614 by phone or mail.
See pages 7 and 75.
Help for People With Disabilities
Telephone help is available using TTY/TDD equipment. See
page 13 for the
number. Braille materials are available at libraries that
have special services for people with disabilities.
Interest
and Penalties
You do not have to figure the amount of any interest or penalties
you may owe. Because figuring these amounts can be complicated,
we will do it for you if you want. We will send you a bill
for any amount due.
If you include interest or penalties (other than the estimated
tax penalty) with your payment, identify and enter the amount
in the bottom margin of Form 1040, page 2. Do not
include interest or penalties (other than the estimated tax
penalty) in the amount you owe on line
72.
Interest
We will charge you interest on taxes not paid by their due
date, even if an extension of time to file is granted. We
will also charge you interest on penalties imposed for failure
to file, negligence, fraud, substantial valuation misstatements,
and substantial understatements of tax. Interest is charged
on the penalty from the due date of the return (including
extensions).
Penalties
Late Filing. If you do not file
your return by the due date (including extensions), the penalty
is usually 5% of the amount due for each month or part of
a month your return is late, unless you have a reasonable
explanation. If you do, attach it to your return. The penalty
can be as much as 25% (more in some cases) of the tax due.
If your return is more than 60 days late, the minimum penalty
will be $100 or the amount of any tax you owe, whichever is
smaller.
Late Payment of Tax. If you pay
your taxes late, the penalty is usually 1/2 of 1% of the unpaid
amount for each month or part of a month the tax is not paid.
The penalty can be as bmuch as 25% of the unpaid amount. It
applies to any unpaid tax on the return. This penalty is in
addition to interest charges on late payments.
Frivolous Return. In addition
to any other penalties, the law imposes a penalty of $500
for filing a frivolous return. A frivolous return is one that
does not contain information needed to figure the correct
tax or shows a substantially incorrect tax because you take
a frivolous position or desire to delay or interfere with
the tax laws. This includes altering or striking out the preprinted
language above the space where you sign.
Other. Other penalties can be
imposed for negligence, substantial understatement of tax,
and fraud. Criminal penalties may be imposed for willful failure
to file, tax evasion, or making a false statement. See Pub.
17 for details on some of these penalties.
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