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by Stephen Parezo

April 3, 2006—Few things cause as much anxiety this time a year as filing last-minute tax returns. That’s why starting April 6, participating Fiducial offices will be offering the exclusive FAST TRAX TAX™ program designed especially for busy taxpayers that need to file up to the last minute or who need to file for an extension.

“We always get a number of emergency calls on April 15th asking us to do the tax return that day,” said Gene Polley, a senior business advisor in Fiducial’s San Diego, CA, office.

Fiducial’s FAST TRAX TAX program offers a refreshing alternative that can be a taxpayer’s saving grace. Unlike other tax preparation firms who won’t take appointments after April 1st or who are winding down their operations to close right after April 17, Fiducial is there for its clients when crunch time comes.

The company fully staffs its offices for the final weeks of the tax season to handle late-filers and will be open later hours for their convenience. Clients can file a completed return or an extension─Fiducial will e-file extensions for clients at no charge─and for certain filers, the extension will be free if the taxpayer later has Fiducial complete their returns.

Filers with more complex situations will have the benefit of Fiducial’s expert tax professionals to help with estimating any tax liabilities so that penalties and interest can be avoided. Above all, Fiducial guarantees that all FAST TRAX TAX returns will be completed quickly, accurately and on time.

Ordinarily, taxpayers have until this April 17 to file their 2005 Individual Income Tax Returns; however, the IRS and almost all state taxing authorities will allow taxpayers an automatic extension of these returns until October 15 six months later. While the applications for extension for the filings are usually one-page forms that are easy to complete and can even be e-filed to the applicable authority, the kicker is that all taxes due are payable on April 17. For taxpayers who do not file either a tax return or an extension, the penalties can be quite large.

Getting on board

For example, if there is an unpaid balance on the tax return that is filed late, the penalty for late filing may be as high as 25% (5% per month for up to five months) of the amount due. As a result, taxpayers must still go through calculations to estimate their tax liabilities, or face penalties and interest on the amounts not paid to the taxing authorities timely.

However, if the taxpayer makes a “good faith” estimate of his/her taxes the penalty is reduced to ½ of 1% per month (still a maximum of 25%, but it would take 50 months to get there). Note that the IRS will charge interest, at the prevailing rate, currently 7%, on any unpaid taxes from April 15 until the taxes are paid.

Polley observed that many filers are often too paralyzed to ask for a filing extension which worsens the problem by adding late filing penalties.

“Most people don’t realize that the taxes are still due and are reluctant to do the work to determine their taxes, which is essentially completing a miniature return,” he said. “Doing all this work free is a great deal for a client or potential client. Doing an extension properly is not just filling out a one-page form.”

To get on board the FAST TRAX for all your tax preparation needs, contact your local Fiducial office or visit www.fiducial.com and click on the FAST TRAX TAX banner that’s available starting April 5.

Stephen Parezo is the Media Manager for Fiducial.

Whatever your small business needs, your Fiducial tax and financial professional can analyze your situation and recommend an appropriate action plan. To locate a Fiducial office nearest you on fiducial.com, see the Zip Code Locator located in the upper right hand corner of the page. Do you have a particular topic that we should be writing about that can help your business? Please send your suggestions to: stephen.parezo@fiducial.com.

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