Tax RESOURCES

Even though the IRS has ceased mailing out tax packets, it's still possible to file your tax return via traditional mail. Be aware, this method might increase processing times and error chances due to the necessity of manual data entry. The IRS occasionally alters filing locations; hence, your return may need to be mailed to a different address than previous years. To find the correct Internal Revenue Service Center for your state, consult the Form 1040 Instructions or visit the IRS website.

As technology progresses, so does the ease of filing tax returns. IRS e-file refers to the electronic transmission of your tax return to the IRS. At Empowerment Finances, we offer free electronic filing of federal and state returns for all customers who utilize our tax preparation services. Additionally, we can e-file a tax return you've prepared yourself, or those prepared by others, for a fee - this is known as a "Transmit-Only Return."

It's important to note that for successful electronic filing, every person listed on the return must possess a valid tax identification number, like a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).

Mark your calendars - May 17th is the due date for most taxpayers to file their 2021 income tax returns. If you choose to file an extension by this date, ensure to complete your tax return no later than October 15th.

To ensure your paper return is filed on time, it must be mailed in an envelope correctly addressed and postmarked by the due date. Registered mail offers proof of delivery, with the date of registration being the postmark date. Certified mail receipts postmarked by a postal employee also provide evidence of return delivery.

When using a private delivery service sanctioned by the IRS, the postmark date is usually the date the private delivery service records in its database or marks on the mailing label. For proof of this date, inquire with your chosen delivery service. IRS-designated private delivery services include:

• FedEx: Offers various services such as FedEx First Overnight, FedEx Priority Overnight, and FedEx 2Day.
• United Parcel Service (UPS): Options include UPS Next Day Air, UPS 2nd Day Air, and UPS Worldwide Express Plus.
• DHL: Services range from DHL Express 9:00 to DHL Import Express Worldwide.

When it comes to e-filed returns, timing is everything. Your return is considered filed on time if the authorized electronic return transmitter postmarks the transmission by the due date. This electronic postmark signifies when the authorized transmitter received your electronically filed return on its host system. Notably, the date and time in your time zone is what determines the timeliness of your e-filed return.

Nobody likes late fees, and the IRS is no exception. If you don't file your return by the due date, you might be hit with a failure-to-file penalty, as well as accruing interest. To sidestep these penalties, file an extension by April 17, 2022.

Keep in mind that if you didn't file a return but were owed a refund, you're not out of luck. However, you must file within three years from the date the return was originally due to secure your refund.

Mistakes happen. If you realize you've left out income or missed some deductions after filing your tax return, don't worry. You can amend your return by filing Form 1040X, Amended U.S. Individual Income Tax Return. Typically, you must file your amended return within three years of the date you filed your original return or two years after paying taxes, whichever comes later. Remember, after the due date of the original return, you can't change your filing status from Married Filing Jointly to Married Filing Separately.

If you need to file an injured spouse claim, don't use Form 1040X. Instead, send Form 8379, Injured Spouse Claim and Allocation, by itself to the same Internal Revenue Service Center where you filed your joint return. Make sure to include copies of all Forms W-2, W-2G, and 1099-R showing income tax withheld.

There's no need to include any penalties or interest on Form 1040X - these will be adjusted accordingly. File a separate Form 1040X for each year you are amending, and remember, when you amend your federal return, you may also need to amend your state return. Please allow the IRS two to three months to process Form 1040X.

Currently, amended returns cannot be e-filed.

Take, for instance, Henry who filed his return in January and paid the $129 balance due. A fortnight later, he received an additional Form W-2. As Henry had already filed his Form 1040, he is required to file Form 1040X to amend his return and report the extra income.