Jackson Hewitt Provides Last Minute Tips for Extension Filers as August 15th Deadline Quickly Approaches

Released on = August 19, 2005, 4:19 pm

Press Release Author = Jackson Hewitt Tax Service

Industry = Financial

Press Release Summary = Jackson Hewitt provides last minute tips for extension filers as August 15th deadline quickly approaches.

Press Release Body =PARSIPPANY, N.J., Aug. 4, 2005 -- Tax season and all that it brings for taxpayers is over ... at least for most of us. But it may not be over for the up to 10 million taxpayers who needed more time this year and, before the clock struck midnight on April 15th, filed for an automatic extension with the IRS. Now, with the August 15th extension deadline quickly approaching, Jackson Hewitt Tax Service (NYSE: JTX) offers some valuable tips to help those who are once again coming down to the wire.

Tax Tip #1 - E-file your 2004 tax return.

A tax professional, who is also authorized to electronically file via IRS e-file, can help make the process a smoother one for you by electronically filing your tax return. Each year, the number of taxpayers choosing to e-file continues to grow. This year the IRS reached a new milestone, reporting that over 50 percent of all
individual tax returns filed for tax year 2004 were e- filed, demonstrating that more and more taxpayers are finding value in the many benefits of e-filing, which include speedy acknowledgement of receipt of your tax return, accuracy and convenience. "E-filing not only saves you a trip to the post office and money on postage, it provides immediate acknowledgement that the IRS has received your tax
return," said Mark Steber, Vice President of Tax Resources for Jackson Hewitt Tax Service. "IRS e-file also helps eliminate many of the errors associated with paper forms completed by taxpayers."

Tax Tip #2 - Review all of your payment options if you owe money to the IRS.

When you filed for your automatic extension of time to prepare and file your tax return, it did not provide you with an extension to pay any outstanding taxes that you owe the IRS. You were required to estimate the amount of taxes due, if any, and forward a payment to the IRS by the April 15th deadline. Some taxpayers did not pay
their debt or were unaware that they owed. If you have a tax liability that was not paid by the April 15th deadline, you will owe interest on any amount not paid, as well as late payment penalties. Other penalties may also apply, such as penalties for underestimating your tax liability. However, there are exceptions to those rules. For example, if you made an estimated tax payment before April 15th, covering 90 percent of your total tax bill, your penalty for underestimating may be reduced.

"If you owe taxes to the IRS, don't panic," says Steber. "You do have payment options. The best way, ideally, is to pay off the entire amount of your debt with a check or automatic bank withdrawal. But if you are unable to pay the total amount, other options include: requesting an IRS payment plan, taking out a low-interest
loan or even paying with a credit card -- helping to delay or extend your payments over time and possibly provide valuable reward points if your card is connected to such a program. Whatever you decide, the most important thing is to avoid adding additional penalties and interest to your tax debt."

Tax Tips #3 - Still not ready for August 15th? One more option is available!

Unlike the automatic extension you submitted prior to April 15th, if you need more time beyond the August 15th deadline you will have to apply for an additional extension that must meet certain criteria and be approved and granted by the IRS. You can apply for this additional extension, giving you until October 17th to complete your tax return, by completing Form 2688, Application for Additional Extension of Time to File U.S. Individual Income Tax Return. Applications for this
extension must be approved by August 15th, so don't delay. A bonus -- if you take advantage of e-filing Form 2688, you will receive immediate review by the IRS to grant or refuse your extension.

Tax Tip #4 - You don't have to tackle this process alone. Seek out a qualified tax preparer.

To make the entire process smoother and to ensure that you are taking all of the credits and deductions allowed for your unique situation, it is important to gather all of your necessary documents. A qualified tax professional can be a true benefit to you during this process, helping you to review your paperwork, identify the correct forms that need to be completed and conducting the actual tax return
preparation and e-filing. Many Jackson Hewitt offices are open year-round, providing immediate access for tax preparation service, e-file and filing for Form 2688, if necessary.

Below, is a checklist of items a taxpayer can review prior to having their taxes prepared. This handy list provides a great overview to ensure that the basic and often overlooked documents are in hand to ensure a proper filing. This list can also be found by visiting the Jackson Hewitt Tax Service website at:
http://www.jacksonhewitt.com .

Social Security Card(s) IRA Contributions Driver's License(s) Alimony Paid or Received Dependents' Social Security Numbers Child Care Expenses & Provider & Dates of Birth Information Last Year's Federal & State Tax Medical, Eye Care & Dental Expenses Returns Wage Statements (Form W-2) Cash & Non-cash Charitable Donations
Pension or Retirement Income Record of Purchase or Sale of (Form 1099-R) Residence Interest & Dividend Income Mortgage or Home Equity Loan (Form 1099-INT /Form 1099-DIV) Interest Paid (Form 1098) State Income Tax Refund Amount Real Estate & Personal Property (Form 1099-G) Taxes Paid Social Security Income State or Local Sales Taxes Paid (Form SSA-1099) Unemployment Income (Form 1099-G) Unreimbursed Employment-related Expenses Commissions Received/Paid Job-related Educational Expenses Sales of Stocks or Bonds (Form 1099-B) Educator Expenses Self-Employed Business/Farm Income Tuition & Education Fees & Expenses (Form 1099-MISC) (Form
1098-T) Lottery or Gambling Winnings Student Loan Interest (Form 1098-E) (Form W-2G) Lottery or Gambling Losses Casualty or Theft Losses Income & Expenses From Rentals Estimated Taxes Income from Partnerships, S Corporations, Trusts & Estates (Schedule K-1) Foreign Taxes Paid In addition to the checklist, a unique tool and helpful tool, called Deductions@Work is available on the Jackson Hewitt Tax Service website. This easy-to-use tool helps pinpoint income treatment, deductions and credits available based on a taxpayers occupation. Taxpayers can also locate their nearest Jackson
Hewitt office through the Office Locator on the website, or by calling
1-800-234-1040.

About Jackson Hewitt Tax Service Inc.

Jackson Hewitt Tax Service Inc. (NYSE: JTX) is the second largest tax preparation service company in the United States, with over 5,400 franchised and company-owned offices in 49 states and the District of Columbia. Specializing in electronic filing (IRS e-file), the Company provides full service, individual federal and state income tax preparation and facilitates related financial products. Most Jackson Hewitt offices are independently owned and operated. Jackson Hewitt is based in Parsippany, New Jersey. More information about the Company may be obtained by visiting the Company's Web site at http://www.jacksonhewitt.com.

Web Site = http://www.jacksonhewitt.com

Contact Details = Jackson Hewitt Tax Service
7 Sylvan Way
Parsippany, NJ 07054
1-800-234-1040
jh@digitalbrandexpressions.com