General Information on Income Tax Forms
Posted on August 27, 2011 | No Comments
Elijah James asked:
If you have some source of income and if the income exceeds the minimum taxable limit then you are required to file your tax returns. Income tax forms are used for filing the tax returns. There are numerous forms and each form has specific purposes.
Income tax forms could be obtained from libraries, post offices or schools in your locality. It could be downloaded from IRS website also. With the inception of e-filing of returns, paper tax forms have lost its significance. But there are certain forms in the IRS website that cannot be downloaded for filing returns. These forms are called “information only forms”. Even the photocopy of these forms cannot be used. This is because the original paper forms are machine- readable. It has a bar code which the machine will read. If you photocopy it the barcode becomes unidentifiable. Examples of “information only” tax forms are W2 and W3 series with one or two exceptions; form 1096 and form 8109B; and the series of 1098, 1099, 5498, and 5500.
Thorough knowledge of each of the documents is required if you are filing your tax returns yourself. Improper use of the tax forms may invite fines from the IRS. So if you do not know the proper forms to be used, it is better to seek the assistance of a CPA, an Accountant or an IRS Tax Lawyer. As these are professionals who know the IRS procedures inside out, they will know the proper documents to be used.
While filling the tax forms also care has to be taken. If you don’t fill in the details of income correctly, you will end up paying additional taxes or reduced taxes. If you pay less tax than is required to pay, you will be penalized and you will have to pay interest for the outstanding tax.
If you enter the wrong social security number, the return you file will go into someone else’s account.
If there is any calculation error in your income tax forms, it could be detected while filing itself. If you forget to attach supporting documents, you will be contacted by IRS authorities. If you did not include any income in your income tax form while filing returns, the amended return has to be filed at the earliest with supporting documents. Otherwise you will be penalized when the discrepancy is found.
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If you have some source of income and if the income exceeds the minimum taxable limit then you are required to file your tax returns. Income tax forms are used for filing the tax returns. There are numerous forms and each form has specific purposes.
Income tax forms could be obtained from libraries, post offices or schools in your locality. It could be downloaded from IRS website also. With the inception of e-filing of returns, paper tax forms have lost its significance. But there are certain forms in the IRS website that cannot be downloaded for filing returns. These forms are called “information only forms”. Even the photocopy of these forms cannot be used. This is because the original paper forms are machine- readable. It has a bar code which the machine will read. If you photocopy it the barcode becomes unidentifiable. Examples of “information only” tax forms are W2 and W3 series with one or two exceptions; form 1096 and form 8109B; and the series of 1098, 1099, 5498, and 5500.
Thorough knowledge of each of the documents is required if you are filing your tax returns yourself. Improper use of the tax forms may invite fines from the IRS. So if you do not know the proper forms to be used, it is better to seek the assistance of a CPA, an Accountant or an IRS Tax Lawyer. As these are professionals who know the IRS procedures inside out, they will know the proper documents to be used.
While filling the tax forms also care has to be taken. If you don’t fill in the details of income correctly, you will end up paying additional taxes or reduced taxes. If you pay less tax than is required to pay, you will be penalized and you will have to pay interest for the outstanding tax.
If you enter the wrong social security number, the return you file will go into someone else’s account.
If there is any calculation error in your income tax forms, it could be detected while filing itself. If you forget to attach supporting documents, you will be contacted by IRS authorities. If you did not include any income in your income tax form while filing returns, the amended return has to be filed at the earliest with supporting documents. Otherwise you will be penalized when the discrepancy is found.
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