Countdown to tax day IRS SCAMS

There's just a week to go before your tax return is due and the scamsters are out and about, trying to phish you out of your hard-earned tax refund – AND YOUR IDENTITY.

Here's what's happening. There are fake emails being sent out to millions of Americans that supposedly come from the IRS. The emails direct you to a website that requests personal and financial information, such as your Social Security number, bank account information and credit card numbers.

Because these emails really look like they're from the IRS, you might be tempted to respond.

Please don't. You should know that the IRS never sends out unsolicited emails or ask for detailed personal or financial information. Even if you filed electronically, the IRS won't contact you directly. These emails are fake and scam artists are trying to steal your identity.

What should you do? Don't click through or download any attachments. Simply forward the email to phishing@irs.gov.

Avoid making basic tax mistakes

When it comes to filing your tax return, making a mistake can cost you big-time. And according to the IRS, it's so easy to make a mistake and tax returns completed by hand often contain at least one error.

So here are some ways to avoid making those common mistakes.

First, file your return electronically. Most of us can file electronically for free at IRS.gov, but you may have to pay a small amount to file your state return. Filing electronically means you will probably make fewer errors. If you use software like Turbo Tax, you can fill out the form on your computer, keep the information from year-to-year and avoid making mistakes.

Next, if you're going to mail your return, use the peel-off label, instead of writing the address. Be sure your social security number is correctly filled in at the right spot. Check only one filing status on the tax return and the appropriate exemption boxes.

If you're requesting a direct deposit of your refund – which is the smartest way to go – be sure the routing numbers are correct.

Last week deadline for IRA

This year, Americans filing their tax returns got an extra day to get the paperwork done. The tax deadline this year is April 17th, thanks to the 15th falling on a Sunday and April 16th being a holiday in Washington DC.

That means you also have an extra couple of days to open up and fund your Roth IRA.

If you and your spouse or partner earned less than $160,000 this year you're each eligible to open up a Roth IRA and put away as much as $4,000, or up to $5,000 if you're at least 50 years old.

Opening up and funding your Roth IRA might be the smartest financial move you make all year. Funds in your Roth IRA grow tax free forever, and you can open up your Roth IRA at any financial institution, giving you a wide variety of stocks, bonds, and mutual funds to choose from.

An annual $4,000 contribution this year will grow to $434,741 in 30 years, assuming a 7 percent annualized return. Now that's smart.

Watch your deductions this year to avoid getting audited (WSJ story)

Getting a letter from the IRS requesting clarification or more information is enough to strike fear into any taxpayer's heart. So the news that the IRS is stepping up the number of audits wasn't particularly welcome.

One area that IRS officials are taking a closer look at is the deductions you take. If you take too many deductions relative to your income, it can raise a red flag on your return.

The Wall Street Journal recently detailed the story of a woman who tried to write off $45,000 of old clothes she donated. Tax court later knocked that deduction back to $9,000.

Don't overstate what you're giving away to charity. In fact, you should document exactly what you're giving away, how much you paid for it and how much it's worth today. Take the extra step and use your digital camera to capture the number of bags of clothing, furniture and other items that you're giving away.

That way, if the IRS asks for more information about your donation or your deduction, you'll be able to provide it.

Can't get it all done? Everyone is entitled to get an extension on their taxes.

Four more days until your tax return is due. If you're sure you can't get it done on time, or your accountant is booked up past April 17th, you have the right to file for a 6-month extension.

According to IRS officials, getting an initial 6-month extension of time to file your taxes is automatic. You'll need to file IRS form 4868, which you can download from the IRS's website, IRS.gov. But you've got to file this form, which is also available in Spanish, by the April 17th due date.

Although you can delay filing your return, you can't delay making any tax payments that are owed to the IRS. So, be prepared to write a check to the IRS for the amount of taxes you think you'll owe.

If you live abroad, or if you'll be abroad when your 6-month extension is up, or if you're serving abroad in the Armed Forces, special extension rules apply. Go to IRS.gov for details.