(Article provided by David A. Scotch, CPA, P.C., 7 April 2008)

These eight last-minute tips can save you time, money and problems with the IRS.

1. Contribute to an IRA or SEP. There still may be time to reduce your 2007 tax liability by contributing to a traditional IRA or a Simplified Employee Pension (SEP). If you qualify, you can make a deductible contribution to a traditional IRA right up until April 15, 2008. You also have until April 15 to make a Roth IRA contribution. You can contribute up to $5,000 in a traditional or Roth IRA, with an additional $1,000 "catch-up" amount for those age 50 and older. Small business owners can set up and contribute up to $45,000 for the 2007 tax year to a SEP plan up until the due date for their returns, including extensions. (There is no catch-up contributions for SEPs.)
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2. Verify to avoid trouble. Check certain facts and figures after having your return professionally prepared. Before sending your return, ensure the name and Social Security Number (SSN) are correct. The IRS publishes an annual list of the top errors made on returns. Many involve names and SSN that are invalid or do not match federal records.
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3. Be aware that taxis a match game. The IRS electronically matches the information you report on your tax return with what is reported by others, on documents such as W-2s and 1099s. If there are discrepancies, your return may be flagged for closer IRS scrutiny. You need to report all income even if you didn't receive a form, including small amounts of bank interest income. If you receive an incorrect 1099 or W-2, a corrected copy should be issued.
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4. Split a directly deposited refund in up to three accounts. You can request to have it deposited in one, two, or three different U.S. financial institutions, such as banks, credit unions, mutual funds, and brokerage firms. There is no requirement to divide the deposits equally.
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5. Check your refund status.  Although you can't speed up your refund, you can check it's status. Click here to use the IRS Where's My Refund? tool or call this toll-free Tele-Tax number: 1-800-829-4477.
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6. Get an extension if you need more time. Sometimes, it's just not possible to gather your tax information and file by the due date. The IRS allows taxpayers to request an automatic six-month extension of the due date, by filling out Form 4868. Click here  for the PDF form. An extension gives you until October 15th and allows you to avoid incurring "failure to file" penalties. However, it only provides extra time to file, not to pay. Whatever tax you estimate is owed must still be sent by the April 15 due date of the return, or you will incur penalties.
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7. Fix any errors. If you've filed your return, but have overlooked something you may need to amend your return. If the amendment involves an error in your favor, you may be eligible for a refund. Keep in mind that there are statute-of-limitation deadlines for amended returns.
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8. Note another  deadline. April 15 is not only the deadline to be aware of; it's also the deadline for the first quarterly estimated tax payment for 2008, if you are required to make one. (The due date for the second 2008 installment is Monday, June 16th.) If you don't pay enough estimated tax during the year, you may be liable for a tax penalty on top of the tax that is ultimately due. Fortunately, the tax law provides some "safe harbors" for avoiding an estimated tax penalty, whereby no penalty is imposed if your annual payments equal at least:
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   • 90 percent of the current year's tax liability, or
   • 100 percent of the prior year's tax liability (110 percent if your adjusted gross income for the prior year was over $150,000), or
   • if you pay installments on an annualized basis.