Q: How do I go about filing my taxes if I haven’t already done so?
A:
For many of you, April 15 is the infamous date associated with the Internal Revenue Service’s tax filing deadline. This year is no exception, and the deadline is once again quickly approaching. If you have not already filed your 2008 tax return don’t panic, there is still time to prepare your taxes. Millions of Americans seek the consultation of tax preparers to help file their taxes. Choosing this route requires a little extra diligence to make sure your preparer provides accurate advice. Unlike many other professional services, commercial tax preparers are not required to have a license to practice. When I chaired the tax-writing committee in the U.S. Senate, I held a hearing about licensure requirements for tax preparers. The law has not been changed, but taxpayers looking to use a commercial tax preparer service are encouraged to choose wisely. The IRS and the independent Government Accountability Office have found bad actors posing as commercial tax preparers who either illegally assess their clients by charging them a percentage of their refund or misrepresent taxpayers and file for their own personal gain. Even when a tax preparer signs the documents you file with the IRS, the taxpayer is responsible for every stitch of ink and can be held accountable for any false information. For tips on finding one of the thousands of highly qualified tax preparers, visit www.irs.gov.
Q: Why does filing my taxes always seem like such a complicated process?
A: Without a doubt, the tax code is indeed a complicated guidebook full of arcane and complex rules for deductions. I have worked hard to simplify the tax code in order to make it easier to understand, especially for individual taxpayers and small businesses. One of our most complicated tax structures is the Alternative Minimum Tax, or AMT. People seem to know little about it. This tax was originally designed in 1969 to address 165 super rich taxpayers who paid no income tax at all. Because it was not indexed for inflation when it was created, the AMT has become a monster of a tax that could affect up to 25.7 million people in the 2008 tax year. I worked to protect millions of taxpayers from this misguided tax by passing temporary patches each of the years I served as Chairman of Finance Committee. Congress passed another AMT patch last year. The bad news is that partisan differences resulted in the patch being passed very late in the year. I’ve asked the Government Accountability Office to investigate any possible complications caused by the delayed Congressional action. In turn, congressional leaders need to learn that taxpayers should be put before partisan politics.