LIBERTY TAX COVERS LAST MINUTE FILING OPTIONS FOR TAXPAYERS 

(Virginia Beach, VA)  The countdown is on to one of life’s ultimate deadlines.  Liberty Tax Service reminds taxpayers that the filing deadline for 2008 taxes will be Wednesday, April 15th, 2009.  April 15th is also the deadline for starting or contributing to an existing IRA retirement account.  Many Liberty Tax Service offices will be open 24 hours a day from Monday, April 13th through midnight April 15th.  As taxpayers face the federal tax filing deadline, those who owe taxes have some choices.

IT’S TIME TO FILE TAXES OR AN EXTENSION REQUEST

The IRS will grant an automatic six-month filing extension to taxpayers who file a timely extension request. Taxpayers do not need to provide a reason for their request.  Individual taxpayers need to file Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, by April 15th to be granted a filing extension until October 15th.  Partnerships and certain Corporations will file Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, to receive a five or six-month extension, depending on the business entity.

“However, an extension of time to file a tax return still does not constitute an extension of time to pay any tax liability.  Penalties and interest accrue from April 15th if the tax liability has not been paid,” said John Hewitt, CEO of Liberty Tax Service. 

INSTALLMENT PLANS FOR THOSE WHO OWE

What can someone do who owes the IRS money but can’t pay the full amount by April 15th?  Taking out a bank loan may be the least costly option.  Another option is to ask the IRS for permission to make monthly installment payments.  If you are not currently on an IRS installment plan, complete Form 9465, Installment Agreement Request, and attach it to your return.  To limit penalty and interest charges, you should pay as much of the tax due as possible when sending in your return. 

Taxpayers who have already mailed or electronically filed their returns can mail Form 9465 to the appropriate IRS Service Center.  The IRS usually approves or denies installment requests within 30 days of receipt.   

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.  These payments must be made on time, and the taxpayer must agree to meet all future tax liabilities. One available option to ensure timely payments is to have the funds directly debited from a bank account.  Taxpayers may request this by completing line 11 of the Form 9465. 

Taxpayers can charge their taxes owed to a MasterCard, VISA, Discover, American Express Card or a debit card.  They can also pay on the internet by going to www.PAY1040.com or www.officialpayments.com, or call 1-888-PAY1040 (1-888-729-1040) or 1-800-2PAY-TAX (1-800-272-9829). A convenience fee applies.

IRA DEADLINE IS ALSO APRIL 15th

Taxpayers still have until April 15th to open a traditional Individual Retirement Arrangement (IRA) that may help them lower their tax liability for this year. Liberty Tax Service reminds you that for taxpayers covered by a pension plan at work, the modified adjusted gross income limit for deducting traditional IRA contributions has increased. A couple filing married filing jointly whose combined income is between $85,000 and $105,000 can take a partial deduction this year. Single taxpayers (including head of household filers) making between $53,000 and $63,000 can take a partial deduction. The contribution limit for 2008 is the smaller of $5,000 ($6,000 if age 50 or older)or the person’s taxable compensation for the year.

About Liberty Tax Service

Liberty Tax Service (www.libertytax.com) is the fastest growing retail tax preparation company in the industry’s history, with over 3,200 offices in the United States and Canada. The company plans to open up to 500 new offices in January 2010.  Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, Liberty Tax Service has prepared over 6,000,000 individual income tax returns.  With 40 years of tax industry experience, Hewitt stands as the most experienced CEO in the tax preparation business, having also founded Jackson Hewitt Tax Service (NYSE:JTX).

Liberty Tax Service (www.libertytax.com) provides computerized income tax preparation, electronic filing, refund loans, and online filing through eSmart Tax at www.esmarttax.com.  Each office offers customers audit assistance, a money back guarantee, and free tax return checking.  The Liberty Tax Service franchise opportunity has climbed to #3 on the latest Entrepreneur “Franchise 500.”
    

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