Tips on dealing with a taxing project

People have two extra days to settle up with the IRS this year, but to local tax preparers, that’s just another two days people will procrastinate.

Paying the proverbial “man” is something many people do not look forward to, which could be a reason that some people wait till the last minute to look at the paperwork or call their tax preparer. But for some it likely also has something to do with organizational skills, said Dave Tax, a 20-year veteran of the tax business in Newport Beach.

“More and more people are waiting longer and procrastinating till the last minute — more than I’ve seen in a long time,” Tax said.

Getting more organized can help you avoid that, Tax said.

“What we do as tax professionals is really emphasize for people to be more and more organized,” Tax said. “It’s easy to get computer programs like QuickBooks that help people.”

But don’t get overzealous about saving everything in an attempt to get better organized.

Corona del Mar-based tax preparer Steve Ricker said last year he had a woman bring in boxes filled with paperwork she thought would help her get more deductions.

“I’m thinking, ‘What can she possibly have in there?’ ” Ricker said Friday. “She kept receipts for everything and thought she could write off all her electric bills, gas bills, and I had to tell her, ‘Oh no, you can’t deduct all that.’ ”

But do make sure to contact a tax professional if you have a question about what to keep and what not to keep, Tax said.

Getting a refund and busy this weekend? Don’t worry, if you are getting a refund from the government, you do not need to file by the April 17 deadline, Ricker said.

“This April 17 deadline doesn’t apply to them…. The IRS is only interested in getting their money,” Ricker said. “If you’re getting a refund, you can do it a year from now and still get your money.”

If you know you’ll owe taxes and it’s just not feasible to get in your paperwork by the Tuesday deadline, file for an extension, but try to pay what you think you’ll owe, since an extension is not necessarily to pay taxes, just to file, Ricker said.

“If you have a basic idea what you owe, you can fill out an extension form and send in a check for what you estimated you owe, and that way it covers you when you do your taxes,” Ricker said. “If you’re right in the ballpark, you already paid that amount, and anything over that you will only incur a small penalty. If you overpay, you can get that money back when you file your returns.”

People should be filing online, too, Tax said. Not only does it cut down on the paper mess, it can save time and potentially money, too.

If expecting a return, filing online and requesting a direct deposit can shave off weeks from the return time. There are free e-file programs through www.irs.gov that are available to people who made less than $52,000 last year.

“Everybody should really be taking advantage of electronic filing of tax returns There should be no more mailing and going to the post office at midnight, then waiting on the refund check…. People should also take advantage of automatic debit … it ensures the safety of not having a check lost in the mail and not incurring extra penalties,” Tax said.

Make sure to take advantage of the long distance telephone excise tax refund, which ranges from $30 to $60. It’s a one-time tax refund for anyone who paid long distance on either a land line or cell phone.

There’s also a residential energy efficiency tax credit for people who install energy-efficient doors, windows, water heaters, insulation and solar energy systems. This year will be the last year to deduct for that, he said.

For more information, go to www.irs.gov .