| When it comes to filing your tax return, spending 42 | | | | E-filing is rapidly becoming the filing method of choice. |
| cents could be the biggest mistake you ever make. | | | | But the majority of returns are still filed on paper, so |
| Millions of taxpayers make the mistake of putting their | | | | here's a second way to avoid the "missing return" |
| income tax return in a regular letter-sized envelope, | | | | dilemma. |
| sticking on a 42 cent stamp, and placing the envelope | | | | OPTION #2: If you're a "paper filer", go to the post |
| in the mailbox. | | | | office and spend a measly $5 to send the letter via |
| And millions of taxpayers "get away" with this mistake | | | | Certified Mail, Return Receipt Requested. |
| year after year. | | | | Doing this will accomplish two very important things: |
| Why do I say that putting your tax return in the | | | | 1. Certified Mail provides the proof that the return was |
| mailbox is a mistake? Let me explain. | | | | mailed, and that it was mailed on time, on or before the |
| Every year, a small percentage of mail doesn't get | | | | due date. |
| delivered. The U.S. Postal Service doesn't like to admit | | | | According to the IRS, a paper return is filed on time if it |
| this, but it's true. | | | | is mailed in an envelope that is properly addressed and |
| Furthermore, even if your tax return gets delivered to | | | | postmarked by the due date. When you use Certified |
| the IRS, every year a small percentage of tax returns | | | | Mail, you will get a receipt postmarked by the postal |
| get lost by the IRS. | | | | employee, and the date on the receipt is the postmark |
| Don't believe me? I'll never forget the day one of my | | | | date. |
| clients showed me a letter he received from the IRS: | | | | So, should the return get lost by the IRS, or if the IRS |
| "We regret to inform you that we received your | | | | questions whether you mailed it on time, you will have |
| return.... but have lost it." | | | | written proof. |
| Believe it or not, this actually happened! | | | | Plus, every piece of Certified Mail is assigned a |
| So my question to you is this: What are you doing to | | | | tracking number which can then be traced by the U.S. |
| do if this happens to you? | | | | Postal Service should a problem arise. |
| If your tax return doesn't get delivered, or if it gets | | | | 2. Return Receipt provides another level of insurance. |
| delivered but is subsequently lost inside the mammoth | | | | For an extra $2, when the letter is delivered, the IRS |
| IRS, what are you going to do to prove that you | | | | must sign or stamp a receipt that documents the date |
| actually mailed the return? | | | | of delivery. This receipt then gets mailed back to you, |
| Just calling the IRS and saying, "Well, I mailed it on time. | | | | so you now have the written proof that the IRS |
| I know I did!" isn't going to prove anything. And the | | | | received it. |
| burden to prove you mailed the return on time will rest | | | | Technically, you only need to send the return via |
| on your shoulders. | | | | Certified Mail to prove that it was mailed on time. But I |
| You have two ways to solve this potentially | | | | really like the Return Receipt as well -- it gives you that |
| dangerous problem: | | | | extra "peace of mind" to know that the IRS received it. |
| OPTION #1: File your return electronically. | | | | And you'll know exactly what day it was received. |
| There are many benefits to e-filing: | | | | This is the proof of delivery. |
| -- Accuracy. In order for a return to get e-filed it must | | | | So don't run the risk of having your tax return get lost |
| pass several strict accuracy tests, thereby significantly | | | | in the mail. And don't run the risk of having your tax |
| reducing the chance of human error. E-filed returns are | | | | return get lost in the piles and piles of paper that flood |
| subject to this level of scrutiny at the point of | | | | the IRS each year. |
| origination. | | | | Think about it. Well over 100 million personal income tax |
| -- Security. The filer creates his own electronic | | | | returns are filed with the IRS every year, and the |
| signature, resulting in a truly paperless experience. | | | | majority of them are still prepared on paper and mailed |
| -- Speed. If you're due a refund, it can take 6-8 weeks | | | | by the U.S. Postal Service. |
| with a paper return. Combined with direct deposit, your | | | | The U.S. Postal Service and the IRS are staffed by |
| e-filed return will generate a refund in as little as 10 | | | | hard-working people who are only human. People |
| days. | | | | make mistakes. To greatly reduce the chance of a |
| -- Proof of acceptance. This is the benefit I want you | | | | mistake being made with your return, don't you make |
| to focus on right now. When you e-file your return, you | | | | the mistake of just putting your tax return in the |
| receive an electronic acknowledgement within 48 | | | | mailbox. |
| hours that the IRS has accepted your return. | | | | Instead, e-file it, or take it to the post office and send it |
| Bingo! Now you have proof positive that the return | | | | Certified Mail, Return Receipt Requested. It could be |
| was filed. 'Nuff said? | | | | the best $5 you ever spent! |