I was interviewed the other night by KNBC News, Los Angeles, where I mentioned a huge tax tip for the upcoming filing season:
Even, if you haven’t filed in years, or have just completed a draft of your 2007 income tax return and it shows that you owe, but don’t have the money, you should still file it by 4/15/08 and send in a check with for $10.00. This accomplishes 2 very significant things in your favor:
1. You avoid the huge 25% failure to file penalty, and
2. It creates a computerized record of account at IRS showing that you sent in a $10.00 payment with your 2007 income tax rerturn (reflecting good faith and credibility on your part).
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