EXPERT OFFERS TIPS TO REDUCE TAX HEADACHES; PLANNING, ORGANIZATION TOP LIST.

Byline: Daily News Wire Services

If you're like many Americans, you have procrastinated about as long as you can, and you're now ready to sit down with your pile of forms and receipts and tackle your income taxes.

Or you've just finished and are completely exhausted, but still realize you could plan better for next year. Gary Stroth, executive director of Consumer Credit Counseling Service of Los Angeles - with offices in Santa Clarita and Palmdale - offers several simple tips for reducing stress by simplifying the tax filing process.

``While doing your federal income tax return is time-consuming and a bit intimidating, much of the agony is self-inflicted,'' Stroth said. ``For most people, all it takes is a little planning and organization throughout the year to prevent the annual tax drudgery every April. If you play your cards right, you could save yourself a lot of money.''

For people who believe they owe taxes:

Begin your taxes early. Calculate how much you will owe as soon as possible so you can begin saving for the payment. Filing on time will enable you to avoid the penalty for filing late.

Start saving immediately. Cut back on unnecessary expenses such as those for entertainment and dining at restaurants. Instead of a costly spring vacation, consider low-cost activities closer to home. Consider spring cleaning and holding a garage sale.

If you still can't pay, schedule an appointment with a CCCS-LA counselor. The agency offers a tax advocacy program that can help you work out a repayment plan with the IRS. Once a representative reviews your budget and living expenses, an installment agreement - subject to IRS approval - can be developed.

If you can't pay with savings and decide to pay with a loan, you will have the added cost of interest, so shop for the lowest rate possible.

To avoid owing a lump sum again next year, see your employer's payroll or human resources manager to increase your withholding amount for your W-4 immediately.

Avoid the temptation to pay tax bills with your credit card. With this newest payment option, in addition to high interest, taxpayers will be charged a fluctuating ``convenience fee.''

On the other hand, if you are due a refund, Stroth advises the following:

If you're getting a refund of more than $100, you might want to reduce your withholding amount. Tax refunds are not as good as they seem because, in reality, you've just extended an interest-free loan to the federal government.

Make the most of large refunds. Rather than splurging on a big ticket consumer item, take advantage of this rare opportunity to create an emergency fund, reduce credit card debt, set aside the money for large annual expenses such as property taxes and insurance or start a college fund for your child.

Established in 1966, Consumer Credit Counseling Service is a nonprofit organization dedicated to helping people learn how to prevent and solve financial difficulties. The group offers professional programs including consumer credit education, confidential individual counseling and the implementation of debt reduction plans.

Appointments for free debt counseling sessions in person or by phone can made by calling [phone]. No-cost Internet counseling is also available at cccsla.org.