You’re never alone in cyberspace, not even when you’re agonizing over a tax return. And there’s more tax information out there than ever before.
But cyberspace is exactly like the real world when it comes to personal finance: Caveat emptor is the most important rule. Just because you read something on the Internet doesn’t make it true. (Although you ought to be able to trust the answers you find on the IRS site.)
– Agencies. The Internal Revenue Service (http://www.irs.ustreas.gov) is a “must” for your bookmark, if only so you can download an extension form on April 15. But it also has loads of IRS information for individuals and businesses, frequently asked questions, statistics and regulations. Best of all, unlike the 800 number, it’s usually accessible around the clock.
The Franchise Tax Board (http://www.ftb.ca.gov) isn’t as essential as the IRS home page, if only because California grants an automatic no-form-needed extension. It has state forms, tax information, regulations and links to sites for other state agencies.
– Starting places. Tax Sites Directory (http://www.uni.edu/schmidt/tax.html): It looks as dull as cash-register receipts, but that’s not the point. Dennis Schmidt, an associate professor of accounting at the University of Northern Iowa, links you to tax sites in 20 categories, including academia, associations and policy groups. Bottom line: a great place to start hunting for tax information.
Barry Rubin’s home page (http://home1.gte.net/brcpa/index.htmstatelink): This Florida CPA has something spiffy for folks with wanderlust: links to sites for all 50 states, with a graphic indicating which ones beam out their tax forms in Adobe PDF format, via fax or Telnet. Whether you lived in Bubbaville or Joisey for half of 1996, this site will take you “home” long enough to snare tax forms.
TaxWeb (http://www.taxweb.com/): Another site with useful links to other tax sites. You can download more than 50 federal forms and link up to the states for theirs. You also can check on recent or pending federal and state tax laws.
– Information, please. California Society of Certified Public Accountants (http://www.calcpa.org/): This site is geared for accountants. But it also features reports on a range of tax, retirement, small-business and financial- and estate-planning topics.
Citizens for an Alternative Tax System (http://www.cats.org): Fed up with this grand old tax system of ours? This Virginia-based group seeks to abolish the federal income tax and replace it with a national retail sales tax. You’ll know you’ve found the page when you spot the IRS abbreviation with a bright red international “no” sign splashed across it.
Compucraft Tax Services (http://www.cctax.com/): This site is pitched to tax professionals but has two things the public can root through. First, there are quarterly batches of useful tax-related news (though the most recent posting was from winter 1996). Second, it has links to Web sites for the IRS, Franchise Tax Board, tax associations and eclectic diversions for anyone driven loony by their taxes (our favorite title: “60 Greatest Conspiracies of All Time”).
Ernst & Young Tax Cast (http://www.taxcast.com): This is geared to corporate tax professionals. It features the TaxCruiser guide to other tax sites, the firm’s reports and planning tips, and tax news updated daily.
H&R Block (http://www.hrblock.com): Not surprisingly, the nation’s largest tax preparer has one of the more consumer-friendly sites. Check it out for tax tips, forms and answers to frequently asked questions.
The National Association of Enrolled Agents’ Tax Channel (http://www.naea.org): This site features easily understood discussions on such topics as home-office deductions and moving expenses, as well as an impressive array of tax links.
Tax Information for International Students and Scholars (http://fuji.stanford.edu/icenter/taxes/taxes.html): This site is geared for international students. It includes the taxability of grants and scholarships, the in’s and out’s of residence status for tax purposes and a calendar of free tax workshops at Stanford University.
YOU CAN FILE THE HIGH-TECH WAY, TOO
Knight-Ridder/Tribune.
Until now, tax preparers were the only intermediaries the IRS approved to file electronic returns. But this year, software companies are experimenting with various forms of electronic filing.
On price alone, consumers may focus on SecureTax, which lets you complete and print your return at home for free, or file it electronically for $14.90. H&R Block charges $39 to file your return electronically. Intuit’s TurboTax charges $10, plus the cost of the software.
– SecureTax (http://www.securetax.com): Universal Tax Systems, which writes tax software for professionals, will let you use its software on-line to complete your federal return for free, then print it out and transcribe the numbers onto your 1040. Or UTS will print out your returns for $9.95, and file them electronically for $4.95 more.
Another UTS whistle: For $1 more, you can run your return through “Audit Alert,” which will flag whether you’re pushing into risky territory as defined by a statistical analysis of IRS audit records. On the downside, UTS does not guarantee the accuracy of its calculations (software programs do).
– TurboTax Tax Center (http://www.qfn.com/taxcenter): Intuit is experimenting with a test program for 1040EZ filers. You can fill out a 1996 1040EZ on-line for free, then transcribe the numbers. Intuit charges $9.95 to file it electronically. If you can’t file EZ, you can buy the $35 TurboTax or MacInTax software, then have your returns filed electronically for $9.95 extra.
– Parsons 1040EZ Online (http://www.parsontech.com): It’s for 1040EZ filers. For $9.95, you answer questions on-line, then Parsons ships it to the IRS.
– Drake Software (http://www.1040.com): You can file only a 1040EZ. Also, you have to prepare the return at home and plug in the numbers on-line; Drake just files it.
