Taxpayers who filed an extension request in April now face the October 17 (October 31 for taxpayers in designated Hurricane Irene disaster areas)tax filing deadlinefor 2010 returns. Liberty Tax Service urges those who still owe taxes and must file to examine several available options. Taking advantage of theIRS tax extensionallows more time to file, but not to pay any taxes due, so interest is accruing on taxes not paid by the April filing deadline. In today’s recovering economy, the IRS is reacting to taxpayers who are suffering financially due to job losses and other economic hardships.    “It’s always better to pay what you can, and show the IRS your intention to pay the rest of your tax liability. Taxpayers can e-file their returns through this final deadline,” said Loren Oesterle, Manager of .   Borrowing the money, taking out a bank loan, or establishing a home equity line of credit are options to pay in order to meet the final tax filing deadline. Or taxpayers can ask the IRS for permission to make monthly installment payments by completingForm 9465,Installment Agreement Request, and attach it to the tax return. The IRS will approve or deny the request by sending out a written response. If the request is approved, the IRS will charge a fee that will be deducted from the first installment payment and will send instructions on how to make the monthly installment payments. Another available option to ensure timely payments is to have the funds directly debited from a bank account. The IRS may agree to negotiate a smaller installment payment for those currently in the program who are in dire economic straights this year.   payers can charge their taxes owed to a MasterCard, VISA, Discover, American Express Card or pay by using a debit card. A taxpayer can also opt to have overdue taxes deducted from their paycheck. An employer can fill outForm 2159,Payroll Deduction Agreementthat can be filed with the tax forms to get this underway. Another option is paying online by going towww.PAY1040.comorwww.officialpayments.com, or by calling 1-888-PAY1040 (1-888-729-1040) or 1-800-2PAY-TAX (1-800-272-9829). A convenience fee applies.   Some financially distressed taxpayers may quality for an Offer in Compromise.  Under this OIC agreement, the IRS may agree to settle the taxpayer’s liability for less than the full amount of taxes owed.  The IRS is not likely to approve an OIC if there’s evidence that the taxpayer could pay the full amount through the installment plan or another method.  The IRS measures the “reasonable collection potential” (RCP) for payback by considering the value of the taxpayer’s assets including property, cars, other accounts and anticipated future income. A taxpayer can request consideration for an OIC by filling out Form 656, Offer in Compromise, or Form 656L, Offer in Compromise (Doubt as to Liability) and submit it with their tax forms For more information call us at 626-815-1040 ...read more

Learning the skill of tax preparation can be a personal financial and employment advantage during this economic crunch.   Liberty Tax Service offers fall Tax Class that can be the entry point to flexible seasonal part-time and full-time jobs as tax prepares and employees. Because no previous tax preparation is required, the tax school opportunity is available to any and everyone. “Our tax school can be a refresher for the latest changes and life changes affecting our students” commented Loren Oesterle of Liberty Tax Service in Azusa.  “We can help our students follow the steps to certification by the IRS if their goal is to become a tax preparer.” Students use practical application of the tax code to real life situations that cover schedules, credits and forms that can be filed with an individual tax return. Liberty Tax instructors cover tax preparation on paper forms and on the computer addressing tax topics such as how to file as a sole proprietor business owner and purchase and sale of a home.   For the minimal cost of books and time as an investment, those who complete the course may benefit from gaining a new skill set and attaining a clearer understanding of taxes. Class schedules are flexible with day or evening classes available twice a week for ten weeks. is actively recruiting bilingual tax school students. For registration and other details, call Liberty Tax Service at 626-815-1040.   ...read more