Washington Week: Student Voices (O)

Use care when filing taxes, experts say
By Justin Livingston
Daily Mississippian (U. Mississippi)
02/09/2006

(U-WIRE) OXFORD, Miss. — The mere mention of the word "taxes" puts many people over the edge.

Some gripe about them, others try to cheat the system, a few enjoy doing them but no one can escape the tax collector. One big question that many students are asking is where to begin in filing their taxes.

For starters, experts recommend finding an automatic preparer like Intuit's TurboTax software or a certified public accounting assistant to iron out the process and submit returns.

Tonya Kay Flesher, University of Mississippi accounting professor and Arthur Andersen Lecturer, described the tax filing procedure.

"Software systems check the returns for errors," Flesher said. "Thus, beginners shouldn't have a problem with relatively simple returns. For complex returns, it would be best to seek professional assistance. A CPA should be contacted for more complex issues."

Students should not feel embarrassed if they have to get someone else to prepare their taxes for them. MSNBC reported that more than 62 percent of U.S. taxpayers paid preparers to do their returns last year, while another 25 percent were assisted by tax software.

"Many students don't realize the benefit of having a professional work on your taxes," said Jenna Jones, a freshman political science major from Tennessee. "There are so many extra bonuses and deductibles that would have otherwise gone unnoticed had I done the returns on my own."

If students choose to take outside assistance in preparing their taxes, they should make sure they're getting the right advice and choose the preparer wisely, according to officials from the Internal Revenue Service. Choosing an unqualified tax professional could mean the difference between receiving a healthy tax refund and being audited by the IRS.

"If it's too good to be true, it probably is," Flesher said.

Students should consider asking the preparer about their service fees, planning ahead to find someone who will be available for questions after the return is filed, getting a preparer's references and researching the preparer's status with the Better Business Bureau, the IRS said.

The IRS Web site, http://www.irs.gov, also provides numerous tips to consider when starting the preparation process and seeking deductions.

Consider donating a car to charity because it will then become tax deductible, the Web site said.

Try organizing tax files earlier and labeling folders or boxes for materials that can be classified together. Label each folder so that the materials inside can easily be found when tax time arrives.

Also make sure files are turned in on time.

Although this may seem like common sense, it often catches taxpayers off guard, the Web site said.

Know the dates; to continue one's exempt status, a new W-4 form must be filed by Feb. 15. The official deadline for tax returns is April 17, a change from the April 15 deadline of previous years.

Students interested in having their taxes prepared for them should check around campus or in the community. A free tax preparation service will be offered in Holman Hall in rooms 20 and 25 on Friday from 1 p.m. to 5:30 p.m. Faculty members ask that interested students bring all the necessary forms regarding their income, deductions and credit to the session.

The AARP also sponsors a tax service every Tuesday in the Oxford Square.

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