38 • The Monitor • March 16, 2006 IRS offers ‘Free file’ program for filing taxes online STATEPOINT MEDIA refund anticipation loans must dis- 4868 that allows for automatic exten- 2004. Free File debuted in 2003 with close fees and interest rates upfront sions of time to file. nearly 2.8 million users. If death and taxes are indeed and must make clear that RALS are • Alliance members’ websites must Taxpayers do not have to purchase among the few certainties of life, most loans, not tax refunds. Taxpayers also display whether state online tax prepa- any product in order to qualify for the people can at least take solace know- must consent to receive additional ration and filing services are available free services. For additional informa- ing they qualify for the Internal information about ancillary financial and associated fees, if any. tion, visit the IRS’s website at Revenue Service’s improved Free File products. More than five million people used www.irs.gov or call (800) 829-1040. program. In fact, more than 70 percent • Alliance members must provide Free File last year, almost a 47 percent of the nation’s taxpayers - or about 92 additional tax forms, such as Form increase over the 3.5 million users in million people - qualify for Free File this year, according to the IRS. Moreover, a new agreement Another IRS tool is the That said, you need to explain between the IRS and the Free File Unreported Income Discriminate inconsistencies. If you adopted an Alliance, a consortium of tax prepara- Information Function (or UI DIF) older child who will suddenly appear tion software companies, means score. This score rates the likelihood on your list of dependents, include enhanced services and more informa- of there being unreported income, that information. tion for those who use the free servic- generally from all-cash businesses. It’s the simple things, however, es, which can be accessed through the Things that can possibly trigger an that will go a long way in helping to IRS’s website at www.irs.gov. audit are high medical deductions, avoid an audit. Inconsistencies casualty losses, charitable contribu- Prepare a neat return, preferably “This unique private-public part- nership provides free tax software and trigger IRS audits tions, the home-office deduction, one that has been done by a comput- free electronic filing,” said IRS self-employment in an all-cash busi- er program or, better yet, a tax pre- Commissioner Mark W. Everson. “It’s The percentage of taxpayers who ness and returns that just don’t pass parer. targeted to middle- and low-income are audited is very small, but no one the sniff test. For example, if you are Check your math, and sign and taxpayers who can most benefit from wants to be part of that elite group. self-employed and claim a small date the return. this program.” One tool the Internal Revenue income, yet your 1098 shows you’re Don’t file too early or too late, as Among the services and improve- Service uses to select returns for paying the mortgage on a $750,000 it’s thought that taxpayers who file on ments this year: audit is the DIF, that is, the house, a red flag goes up. the first day or days late are likely to • The three million taxpayers who Discriminate Information Function However, if your deductions are have math errors. used to file their income tax return score. The DIF is a secret formula the genuine, take them. Don’t fear telling For tax forms and publications, through TeleFile, an option no longer IRS uses to assign a score to each the truth, but don’t leave anything call 1-800-829-3676. To get forms available, automatically qualify for return. The higher the score, the more out. online, go to www.irs.gov/form- Free File this year. likely it is that you’ll be audited. It’s If you received a W-2 or a 1099 for spubs/ index.html • Seventy percent of the nation’s thought that the calculation is based work over $600, the IRS also has that Write to David Uffington in care taxpayers - those with an adjusted on commonalities with prior audits information. If you received alimony, of King Features Weekly Service, gross income of $50,000 or less - are that resulted in additional taxes report it because the IRS has that too. P.O. Box 536475, Orlando, FL eligible, but each Alliance member owed. On any return, the more you Same with your savings-account 32853-6475 or send e-mail to let- sets its own criteria. deviate from average, the more likely interest you received or mortgage ters.kfws@ hearstsc.com. • Alliance members who offer you are to be audited. interest you paid: The IRS knows. (c) 2006 King Features Synd., Inc. Conveniently located in Northeast El Paso - U.S. Patriot Plaza ANTONIO SOEGAARD-TORRES, MD, P.A. Board Certified Obstetrics and Gynecology, F.A.C.O.G. Specializing in women’s health care services All insurances accepted including Tricare/Triwest, Medicare, TX Medicaid & NM Medicaid Office Hours Immediate appointments for new patients Se Habla 9 am - 12 pm & 1pm - 5 pm (915) 751-5571 Monday/Wednesday/Thursday 9am - 1pm Tuesday/Friday U.S. Patriot Plaza 9870 Gateway North, Ste. B-1 (1 block past Cohen Stadium in front of Carmike Theatre) Español!
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