Whether it’s a shoebox crammed full of receipts or carefully organized folders ready for an accountant’s perusal, everyone approaches tax season differently.

For some, it’s a time of trepidation. Others just file and wait for a refund.

Each year, the formulae for success shifts. There are changes to the tax code. The Internal Revenue Service now emphasizes electronic filing. And, the popularity of software to itemize and file returns is growing.

A first step to preparing for tax season is simple and critical. Get organized, said Jackie Perlman, an H&R Block tax analyst in Kansas City, Mo.

“At the very least, get a box, folder or file drawer and say that’s where you’re going to put all of your tax stuff,” Perlman said.

Too often people file one tax form in one spot and put a separate document elsewhere. “When it comes time to get everything together, you have a heck of a time,” she said.

Next, decide between the do-it-yourself route or a professional, Perlman said.

“If you want to do it yourself, that’s great but the earlier the better,” Perlman said. “If you’re going into unfamiliar territory, and if you have a tax question or need to call technical support for a software problem, you don’t want to be doing that on April 15 at 11 o’clock.”

Follow guidelines

For people with complex returns or those unwilling to tackle the chore themselves, a few simple guidelines can lead to a good accountant, Perlman said.

First, get recommendations from friends, Perlman said. Interview the accountant about their experience. Ask the types of returns they typically do.

“If you’re self employed, for example, ask how many similar clients they have,” Perlman said. “If you’re the only one, you might want to find someone else.”

Make sure the accountant will stand behind the accuracy of a return, signing their name as the preparer, Perlman said.

Be choosy. After all, a tax preparer must know many intimate details of a client’s life.

“It’s a very personal thing,” Perlman said. “You want someone you’re comfortable with and that’s easy to talk with.”

Another step in preparing a plan is a review of the changes in tax codes, and a stop by the IRS Web site at www.irs.gov can answer many questions, IRS spokeswoman Nancy Mathis said.

Changes for 2005 include an increase in the income caps for the simple 1040EZ form, once an option limited to individuals earning no more than $50,000. The cap is now $100,000, Mathis said.

Also, taxpayers can now deduct state and local sales taxes from federal taxes. This was changed for states such as Texas or Florida that lack state income taxes, which are deductible from federal returns.

In states with both an income tax and state sales tax, taxpayers may select the deduction that gives them the greatest advantage, Mathis said.

Once armed with a sound plan, taxpayers should also consider how they will file. The IRS emphasizes going electronic.

In 2004, about 47 percent, or 61.5 million, of the nation’s 131 million tax returns arrived through the IRS e-file system.

“We’re still in the education process, but we expect in 2005 to pass a significant milestone for us and have more than half of the returns filed electronically,” Mathis said.

Electronic filing increases the speed and accuracy of the return. Where electronic returns are ready for processing, tax filings sent through the mail are typed into an IRS database, Mathis said.

“The error rate on paper returns is about 20 percent,” Mathis said. “One in five has some error, either with processing or by the filer.”

Incorrect or missing social security numbers, math errors or missing signatures are the most common problems, Mathis said.

Meanwhile, the error rate dips to about 1 percent for those who use software to prepare a return and who also file electronically, Mathis said.

Mathis suggests selecting the direct deposit option when receiving a refund. Combining e-file and direct deposit dramatically speeds the system.

“It’s safe, reliable and extremely fast,” Mathis said. “With e-file and direct deposit, you get a return in two weeks or less. With paper, it’s four to six weeks.”

While many taxpayers select accountants, others rely on software packages such as Intuit’s TurboTax or H&R Block’s Tax Cut. New versions are updated to reflect changes in the tax code. Other options include online systems that don’t even require a software download. Just key in the information over the Internet.

In 2004, 30 million taxpayers used software or an online service, Intuit spokesman Scott Gulbransen said.

In fact, software returns are growing at twice the rate of professionally prepared returns and online returns are increasing at 10 times the rate of professional returns, Gulbransen said.

“There’s consistent growth in the software category, but there’s blasting growth in online tax preparation,” he said.

While Intuit offers an online option, there are also companies such as TaxBrain and CompleteTax for Web-based filing.

While security concerns remain for Web-based services, worries are diminishing, Gulbransen said.

Anyone considering an online tax service should check a site’s security. Look for logos indicating approval by companies such as VeriSign or TRUSTe, Gulbransen said.

Whether using software or online filing, taxpayers should factor personal security into their tax preparation plan.