Over the years there have been many a “scam” perpetrated upon the innocent, trusting public. The I.R.S. recently released the following:

Beware of Tax Scams! Don’t fall victim to tax scams. These schemes take several shapes, ranging from promises of large tax refunds to illegal ways of “untaxing” yourself.The IRS suggests that you remember three important guidelines:
• You are responsible and liable for the content of your tax return.
• Anyone who promises you a bigger refund without knowing your tax situation could be misleading you, and..
• Never sign a tax return without looking it over to make sure it is accurate.

The above advice is sound. Let me just add something the I.R.S. does not address above: When seeking professional advice, make sure the person you are seeking is truly a professional. One way to tell if they are a professional is if they have a current professional license. CPA’s are licensed by the state they reside in. So you can usually go to (the State’s website where he or she practices) the website and do a search for that person’s name. If their name isn’t listed make sure you find out why. Call the department of professional regulation and ask about the individual. You certainly don’t want to take/trust advice given by someone who purports to be a licensed professional and is NOT! That in and of itself should make you run!

The reason dealing with a professional CPA is so important is that as a licensed professional CPA, that person has a great deal of over site. They have a license to lose. They are required to have, and maintain, a minimum of 80 credit hours of Continuing Professional Education. They also participate in a State guided “peer review” in which outside, independent CPA firms actually examine records and documents of the target firm and issue a report. The firm must correct any errors of operation, and conform to all professional guidelines of the State Society. This results of this independent peer review information is public knowledge.

There are other people who claim to hold some sort of license they are lying. You look on their wall and you see all kinds of certificates. The problem is these certificates are often issued by some meaningless society that requires nothing more than an annual fee to belong. The member has proven nothing as to qualification to belong. DON’T BE FOOLED. If the license is NOT issued by the State you live in it is NOT a professional license. ONLY the State Dept of Professional Regulation issues professional licenses. The Federal Government DOES NOT issue licenses. I have seen many an advertisement by E.A.’s (enrolled agents) claiming to be “licensed” by the I.R.S. this simply isn’t true. Enrolled agents are tax preparers who took a 4hr test given by the I.R.S. and passed. They are ENROLLED( signed up) to practice with the I.R.S. not “licensed”. These individuals are a step above the untested but simply don’t have the training and license exposure that a C.PA. has. They are not subject to any peer review and are not licensed by your STATE dept. of professional regulation. Again if it were me, I would want someone who is truly licensed, not someone who pretends to have a professional license work on my income tax return. Beware, there are many out there to deceive you. Choose a Licensed Certified Public Accountant and you will be assured a high level of competent service.

Around one percent of the American population gets audited every year- a number the Internal Revenue Service (IRS) states is going to be rising soon. Even if odds are that you won’t see an audit, there are things you can do to prevent such an even occurring- which will save you the hassle and time of going through the mundane process.

The IRS looks for ‘red flags’ when determining who to audit. If you want to stay under the radar, you should avoid such flags. Claiminbg to have a home office is one of the major red flags- as it is widely abused by many. If you do have a home office, make sure it follows the strict IRS guidelines to prevent being audited.

If you have started a personal business in the past 3 to 5 years, and it proves to be unprofitable, you will not have to pay taxes on it, since it will be considered a hobby. This will also set up a ‘red flag’ to the IRS.

Over-the-top deductions are another large red-flag. If you make too many deductions, this is very suspicious behavior. Your tax return advisor will know how much is right, if you need advice.

Being audited is something that most likely won’t happen to you, but if you follow these steps, you may never have to deal with the IRS. If you do, indeed, have something to hide- make sure you try to follow these guidelines to reduce the risk of being caught.

An online tax software program such as Turbotax Online 2006, does more than just prepare and file your taxes. It offers advanced tools to help you pay the least amount of tax possible. It also provides an extremely accurate tax return to file with the Internal Revenue Service (IRS). These important tools are something you should be aware of before you begin your taxes.

Let's take a look a few of these tax tools

* Tax Return Calculator Use this handy tool to figure out how much of a tax refund you can expect to get back from the Government. Just enter your information as prompted, and the tax return calculator will quickly complete your tax refund estimate.

* Home Mortgage Calculator All you have to do is enter the amount of interest you paid for the year and the mortgage calculator will show you your tax savings. Be sure to add in any points you might have paid.

* The Deduction Maximizer Tax preparation software such as Turbotax 2006 Deluxe, has a built in tax deduction maximizer. As with the tax return calculator, you just enter your information and the tax deduction maximizer will determine what deductions you should take.

* Tax Articles and Tips Common, and not so common tax questions are answered in the tips and articles section of the tax program. If you want to learn about tax deductions, self-employment, child tax credit, medical expenses, mortgage interest, and a multitude of other tax subjects it's there to help you.

Let's face it not many people enjoy doing their taxes. However, tax software designers are working to make tax preparation and filing software, as hassle-free and money-saving as possible. Having a set of useful tax tools on hand can make the job of (doing your taxes) a little easier and oftentimes, profitable!

Turbo Tax - Free Tax Filing Online

So, you've heard about (free tax filing) and you might have even heard it's available at Turbo Tax. Well, you're right, there is a program available at Turbo Tax which is called the Tax Freedom Edition free tax filing program. Because of an agreement with the (IRS), this free tax filing program is available to those taxpayers who have an adjusted gross income (AGI) of $28.000 or less.

Why is the Government and Turbo Tax doing this? Because, it helps them, and it helps you!

* Since initially debuting in 2003, the IRS has received more than 15 million tax returns through the Free File program, representing a cost-savings to the government of more than $32 million in processing costs of an electronic return compared to that of paper.

* You the taxpayer, get to file your taxes in a more efficient and timely manner than ever before. By using online tax software for your tax filing you get a number of benefits not previously available. Mainly... Free Tax Filing!

The Freedom Edition Tax Software Program, through the Free Tax File Alliance, provides free tax preparation services to millions of Americans with low-to-medium incomes. A partnership between the Government and 19 private tax software companies has been reached which allows you to prepare and file your Federal income tax return for free. There are also 21 States which have a similar program.

If you think you might qualify for (free tax filing) then do yourself a favor and check it out and see. You might get to save yourself a buck in the process and also learn an easier way of doing taxes. One thing is for sure... Online tax filing is here to stay. This is your chance to get started for free.

Did you know that the Internal Revenue Service (IRS) has agreed to a 4-year partnership with 19 online tax software companies? This partnership agreement has been named the Free File Alliance.

The Free File Alliance, was first formed in October of 2002, making free tax programs available to millions of American taxpayers. The (IRS) Free File program lets taxpayers that meet the guidelines file their taxes for free.

An estimated 70 percent of all tax filers are eligible to use the free filing programs offered within the alliance. The new agreement allows Americans with an adjusted gross income (AGI) of $52.000 or less to use the free tax programs to file their taxes for free.

Why is the IRS doing this?

Because, the Federal Government has a goal of 80% of all tax returns processed, be filed electronically by year 2007. The reasons for using electronic tax returns processing are many. Here are a few of those reasons:

* Less is time spent preparing taxes. Free tax programs are designed to save you and the IRS time.
* Refunds are faster and can be electronically deposited into your bank account.
* It's a compelling way to introduce taxpayers to the new method of preparing and filing taxes online.
* Since 2003, the Federal Government has saved more than $32 million in processing costs by offering free tax programs online.

The main purpose of the Free File Alliance is to provide a free tax filing program, for those who can least afford to pay for online tax preparation and e-filing.