(This is the second article in a three-part series on tackling your taxes. See the February, 1998 issue of MODE for tips for small business owners, and watch for last minute hints in next month’s April issue. These articles are not intended as a substitute for professional advice.)

It’s an undeniable fact: we all have to report to the IRS by April 15. As tax day looms nearer, it’s time to get busy. Figuring out your taxes now is beneficial whether the end result is a refund or a payment. If you’re eligible for a refund, find out now, get the refund, and put the money to work for you. If your tax return says you’ll be writing the IRS a check on April 15, it’s better to know now and plan accordingly, than to face a last-minute surprise next month. Now that we’ve all made the commitment to get moving on our tax returns…here’s some practical information to make it a bit easier.

In August 1997, the Taxpayer Relief Act of 1997 became a law. This legislation made significant changes to tax law, some of which may affect you. The Act offers relief to many individuals regarding the sale of principal residences. The Act extends the tax benefits of Individual Retirement Accounts to formerly ineligible individuals. Changes were also made to capital gains law, including measures that allow individuals to keep more of the profit they’ve earned by selling investments.

Take some time to find out more about what’s included—contact your accountant with specific questions or for a summary guide to the tax law. Be careful when evaluating the changes: some of them aren’t effective until the 1998 tax year. Until we become familiar with the new law, it’s probably a good idea to run any changes you make on your return by a professional.

Extensive tax assistance is as near as your computer. Visit www.irs.ustreas.gov, where the IRS offers a wealth of information. You can find answers to the most frequently asked tax questions, discover what form you should file to achieve maximum results (it may not be that 1040EZ you’ve been using for years), and where/how to file your taxes. Some of the best information on the site explains how to file your return electronically (e-filing).

The IRS has partnered with a number of private sector entities (including Nelco, Universal Tax Systems, Drake, H&R Block, and Intuit) to offer easy ways for individuals and tax preparers to file electronically. Tax professionals offering electronic filing should have an "Authorized IRS e-file Provider" sign posted at their establishment. If you "e-file," and there are no problems with your return, the IRS says you should receive your refund within three weeks. If you’d like more information on both federal and state "e-filing," call the IRS at 800-829-1040.

The website also explains how to have your refund deposited directly into your account, and have your payment withdrawn directly from your bank account. (Note: As with any direct deposit/withdrawal system, check your bank statement carefully to ensure correctness!) Direct deposit is often speedier, more secure, and more convenient than watching the mail each day!

If you’d like to check on the status of your refund, call 800-829-4477. Have a copy of your tax return on hand when you call, since you’ll need information from the form. Wait three weeks before calling if you filed electronically and six weeks if you filed by mail.

Another benefit at the IRS web site is Tax Trails, which answers many common tax questions, including interest deductions, child and dependent credits, exemptions from withholding, paying estimated tax, filing status, standard deductions, and many more.

The Pennsylvania Department of Revenue also offers tax resources at www.revenue.state.pa.us/. If you don’t find the help you need at the web site, call them at 888-728-2937. Don’t forget about those local taxes. Once you’ve finished the federal and state returns, the local return shouldn’t be too difficult. If you have questions, be sure to contact your local tax bureau.

If you don’t have access to the Internet, call your local library, college, or bookstore to see if they offer free Internet access, or ask a friend who has access if you can use a bit of time to check out the IRS resources. Be prepared, if you’re working on "borrowed" Internet time—have your questions ready and your forms with you.

If you experienced significant life changes during 1997—marriage, divorce, birth/adoption of a child, purchase/sale of a home, change in job status—you may have also changed your tax liability (one way or another). If you find your taxes a bit more challenging than in previous years, take some time to visit a tax professional for advice.

Unsure of how to select a credible tax professional? The best bet is to ask a trusted friend, family member, or colleague for a referral. Call a few tax professionals to learn about their fees, availability, and reference lists. You want your tax professional to be honest, up-front, prompt, and congenial. You need to be able to establish a productive working relationship with this individual—it is your money we’re talking about!

Be prepared when you go. Organize all your tax statements (from your employer, bank, investment sources, etc.), take the tax forms that were mailed to you, have your receipts organized chronologically, and bring your list of questions. The better prepared you are, the easier the process will be.

Don’t wait until the last minute to complete your tax return. If you owe, you can still make that 11:59 dash downtown to the post office on April 15, but starting now will cut down on the headaches you’ll incur if you wait too long! Good luck…see you at the post office!

Tax Deadline: April 15

Internal Revenue Service:

Website: www.irs.ustreas.gov

Refund status: 800-829-4477

Info. on e-filing: 800-829-1040

PA Department of Revenue:

Website: www.revenue.state.pa.us/

General info. 888-728-2937