Yes... it is that time of year again, and we know you are dreading it. We can hear you sighing from here. But recently, the IRS and the Massachusetts Department of Revenue have each established systems that make filing your taxes pretty easy, and relatively pain-free. 

Students are especially encouraged to utilize the new E-File systems to do the deed online. These sites connect you with electronic tax preparation forms and enable you to file online... without waiting in line. Some of the linked companies on the IRS (Federal) page provide free services for certain individuals with simple, low-income returns (ie... you student types)... others charge a small fee.

So what are the benefits of filing this way?  Let us count the ways...
1.  Speeding up your refunds.  On average, refunds will take just 3 weeks
2.  It is faster and easier
3.  Having a computer do the math for you - software does all the calculations and automatically posts the result which are virtually error-proof, and
4.  Preparing you to meet tax obligations in your careers.

So stop by either page and get yourself started on a comfortably easy return!  The IRS (Federal) page is located at http://www.irs.ustreas.gov/elec_svs/partners.htm and the Massachusetts Department of Revenue is at http://www.state.ma.us/dor.  If you are from a state other than Massachusetts, you can do an online search for your state's Department of Revenue.  Chances are, your home state has a similar online program.

There is a really interesting website outlining the history of taxation in the USA? 

The site is sponsored by a division of Tax Analysts, a Virginia based non-profit, non-partisan organization fostering open debate on federal, state, and international tax policy. 

"The penalty for failing to file a tax return is 5% a month on the balance, up to 25 %,"  said Don Roberts, an IRS spokesman in Washington. If you don't owe any money, there's no penalty.

And if you file a return but don't pay, the penalty is 0.5 % a month on the balance, up to 25%.

In addition to those civil penalties, the IRS could prosecute you criminally with a misdemeanor violation punishable by up to a year in prison and a fine of $25,000. However, prosecutors must show you intentionally didn't file your taxes.

According to 1997 data, the most recent available, 3,500 people were convicted of criminal tax evasion, while 1.8 million paid civil penalties, Roberts said.

And if you needed any more motivation to pay up, consider that there's no statute of limitations on past due tabs -- but of course there's a three-year limit to collect a refund. 

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