Your Taxpayer Bill of Rights

As a taxpayer, you have a set of fundamental rights you should be familiar with when you deal with the IRS. You need to understand your rights and the obligations of the IRS to protect them. The following are considered your Taxpayer Bill of Rights:

The Right to Be Informed
The Right to Quality Service
The Right to Pay No More than the Correct Amount of Tax
The Right to Challenge the IRS’s Position and Be Heard
The Right to Appeal an IRS Decision in an Independent Forum
The Right to Finality
The Right to Privacy
The Right to Confidentiality
The Right to Retain Representation
The Right to a Fair and Just Tax System

 

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The Right to Be Informed

As a taxpayer, you have the right to know what you need to do to comply with the tax laws. You are entitled to clear explanations of the laws and IRS procedures in all tax forms, instructions, publications, notices, and correspondence. You have the right to be informed of IRS decisions about your tax accounts and to receive clear explanations of the outcomes.

IRS Fact Sheet No. 1 – The Right to Be Informed

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The Right to Quality Service

You have the right to receive prompt, courteous, and professional assistance in your dealings with the IRS, to be spoken to in a way you can easily understand, to receive clear and easily understandable communications from the IRS, and to speak to a supervisor about inadequate service.

IRS Fact Sheet No. 2 – The Right to Quality Service

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The Right to Pay No More than the Correct Amount of Tax

You have the right to pay only the amount of tax you legally owe, including interest and penalties, and to have the IRS apply all tax payments properly.

IRS Fact Sheet No. 3 – The Right to Pay No More than the Correct Amount of Tax

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The Right to Challenge the IRS’s Position and Be Heard

You have the right to raise objections and provide additional documentation in response to formal IRS actions or proposed actions, to expect that the IRS will consider your timely objections and documentation promptly and fairly, and to receive a response if the IRS does not agree with your position.

IRS Fact Sheet No. 4 – The Right to Challenge the IRS’s Position and Be Heard

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The Right to Appeal an IRS Decision in an Independent Forum

You are entitled to a fair and impartial administrative appeal of most IRS decisions, including many penalties, and you have the right to receive a written response regarding the Office of Appeals’ decision. As a taxpayer, you generally have the right to take your case to court.

IRS Fact Sheet No. 5 – The Right to Appeal an IRS Decision in an Independent Forum

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The Right to Finality

You have the right to know the maximum amount of time you have to challenge the IRS’s position as well as the maximum amount of time the IRS has to audit your return for a particular tax year or collect a tax debt from you. You also have the right to know when the IRS has finished its audit of you.

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The Right to Privacy

You have the right to expect that any IRS inquiry, examination, or enforcement action will comply with the law and be no more intrusive than necessary. You have the right to expect that the IRS will respect all due process rights, including search and seizure protections and will provide you, where applicable, with a collection due process hearing.

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The Right to Confidentiality

You have the right to expect that any information you provide to the IRS will not be disclosed unless authorized by you or by law. You have the right to expect appropriate action will be taken against IRS employees, return preparers, and others who wrongfully use or disclose your taxpayer return information.

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The Right to Retain Representation

You have the right to retain an authorized representative of you choosing to represent you in their dealings with the IRS. If you cannot afford representation, you have the right to seek assistance from a Low Income Taxpayer Clinic.

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The Right to a Fair and Just Tax System

You have the right to expect that the tax system will consider facts and circumstances that might affect your underlying liabilities, ability to pay, or ability to provide information timely. You have the right to receive assistance from the Taxpayer Advocate Service if you are experiencing financial difficulty or if the IRS has not resolved yourtax issues properly and timely through its normal channels.

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Don’t Miss the Health Insurance Deduction if You’re Self-Employed

If you are self-employed, the IRS wants you to know about a tax deduction generally available to people who are self-employed.

The deduction is for medical, dental or long-term care insurance premiums that self-employed people often pay for themselves, their spouse and their dependents. The insurance can also cover your child who was under age 27 at the end of 2012, even if the child was not your dependent.

You may be able to take this deduction if one of the following applies to you:

• You had a net profit from self-employment. You would report this on a Schedule C, Profit or Loss From Business, Schedule C-EZ, Net Profit From Business, or Schedule F, Profit or Loss From Farming.
• You had self-employment earnings as a partner reported to you on Schedule K-1 (Form 1065), Partner’s Share of Income, Deductions, Credits, etc.
• You used an optional method to figure your net earnings from self-employment on Schedule SE, Self-Employment Tax.
• You were paid wages reported on Form W-2, Wage and Tax Statement, as a shareholder who owns more than two percent of the outstanding stock of an S corporation.

There are also some rules that apply to how the insurance plan is established. Follow these guidelines to make sure the plan qualifies:

• If you’re self-employed and file Schedule C, C-EZ, or F, the policy can be in your name or in your business’ name.
• If you’re a partner, the policy can be in your name or the partnership’s name and either of you can pay the premiums. If the policy is in your name and you pay the premiums, the partnership must reimburse you and include the premiums as income on your Schedule K-1.
• If you’re an S corporation shareholder, the policy can be in your name or the S corporation’s name and either of you can pay the premiums. If the policy is in your name and you pay the premiums, the S corporation must reimburse you and include the premiums as wage income on your Form W-2.

For more information, see IRS Publication 535, Business Expenses. It’s available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

 

Source: IRS Tax Tip 2013-43, March 28, 2013

Last Updated: February 12, 2015

IRS names its “Dirty Dozen” tax scams for 2015

WASHINGTON — The Internal Revenue Service wrapped up the 2015 “Dirty Dozen” list of tax scams with a warning to taxpayers about aggressive telephone scams continuing coast-to-coast during the early weeks of this year’s filing season.

The aggressive, threatening phone calls from scam artists continue to be seen on a daily basis in states across the nation. The IRS urged taxpayers not give out money or personal financial information as a result of these phone calls or from emails claiming to be from the IRS.

Phone scams and email phishing schemes are among the “Dirty Dozen” tax scams the IRS highlighted, for the first time, on 12 straight business days from Jan. 22 to Feb. 6. The IRS has also set up a special section on IRS.gov highlighting these 12 schemes for taxpayers.

“We are doing everything we can to help taxpayers avoid scams as the tax season continues,” said IRS Commissioner John Koskinen. “Whether it’s a phone scam or scheme to steal a taxpayer’s identity, there are simple steps to take to help stop these con artists. We urge taxpayers to visit IRS.gov for more information and to be wary of these dozen tax scams.”

Illegal scams can lead to significant penalties and interest for taxpayers, as well as possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice (DOJ) to shutdown scams and prosecute the criminals behind them. Taxpayers should remember that they are legally responsible for what is on their tax returns even if it is prepared by someone else. Make sure the preparer you hire is up to the task. For more see the Choosing a Tax Professional page.

For the first time, here is a recap of this year’s “Dirty Dozen” scams:

• Phone Scams: Aggressive and threatening phone calls by criminals impersonating IRS agents remains an ongoing threat to taxpayers. The IRS has seen a surge of these phone scams in recent months as scam artists threaten police arrest, deportation, license revocation and other things. The IRS reminds taxpayers to guard against all sorts of con games that arise during any filing season. (IR-2015-5) 
• Phishing: Taxpayers need to be on guard against fake emails or websites looking to steal personal information. The IRS will not send you an email about a bill or refund out of the blue. Don’t click on one claiming to be from the IRS that takes you by surprise. Taxpayers should be wary of clicking on strange emails and websites. They may be scams to steal your personal information. (IR-2015-6) 
• Identity Theft: Taxpayers need to watch out for identity theft especially around tax time. The IRS continues to aggressively pursue the criminals that file fraudulent returns using someone else’s Social Security number. The IRS is making progress on this front but taxpayers still need to be extremely careful and do everything they can to avoid becoming a victim. (IR-2015-7) 
• Return Preparer Fraud: Taxpayers need to be on the lookout for unscrupulous return preparers. The vast majority of tax professionals provide honest high-quality service. But there are some dishonest preparers who set up shop each filing season to perpetrate refund fraud, identity theft and other scams that hurt taxpayers. Return preparers are a vital part of the U.S. tax system. About 60 percent of taxpayers use tax professionals to prepare their returns. (IR-2015-8) 
• Offshore Tax Avoidance: The recent string of successful enforcement actions against offshore tax cheats and the financial organizations that help them shows that it’s a bad bet to hide money and income offshore. Taxpayers are best served by coming in voluntarily and getting their taxes and filing requirements in order. The IRS offers the Offshore Voluntary Disclosure Program (OVDP) to help people get their taxes in order. (IR-2015-09)

• Inflated Refund Claims: Taxpayers need to be on the lookout for anyone promising inflated refunds. Taxpayers should be wary of anyone who asks them to sign a blank return, promise a big refund before looking at their records, or charge fees based on a percentage of the refund. Scam artists use flyers, advertisements, phony store fronts and word of mouth via community groups and churches in seeking victims. (IR-2015-12)
• Fake Charities: Taxpayers should be on guard against groups masquerading as charitable organizations to attract donations from unsuspecting contributors. Contributors should take a few extra minutes to ensure their hard-earned money goes to legitimate and currently eligible charities. IRS.gov has the tools taxpayers need to check out the status of charitable organizations. Be wary of charities with names that are similar to familiar or nationally known organizations. (IR-2015-16)
• Hiding Income with Fake Documents: Hiding taxable income by filing false Form 1099s or other fake documents is a scam that taxpayers should always avoid and guard against. The mere suggestion of falsifying documents to reduce tax bills or inflate tax refunds is a huge red flag when using a paid tax return preparer. Taxpayers are legally responsible for what is on their returns regardless of who prepares the returns. (IR-2015-18)
• Abusive Tax Shelters: Taxpayers should avoid using abusive tax structures to avoid paying taxes. The IRS is committed to stopping complex tax avoidance schemes and the people who create and sell them. The vast majority of taxpayers pay their fair share, and everyone should be on the lookout for people peddling tax shelters that sound too good to be true. When in doubt, taxpayers should seek an independent opinion regarding complex products they are offered. (IR-2015-19)
• Falsifying Income to Claim Credits: Taxpayers should avoid inventing income to erroneously claim tax credits. Taxpayers are sometimes talked into doing this by scam artists. Taxpayers are best served by filing the most-accurate return possible because they are legally responsible for what is on their return. (IR-2015-20)

• Excessive Claims for Fuel Tax Credits: Taxpayers need to avoid improper claims for fuel tax credits. The fuel tax credit is generally limited to off-highway business use, including use in farming. Consequently, the credit is not available to most taxpayers. But yet, the IRS routinely finds unscrupulous preparers who have enticed sizable groups of taxpayers to erroneously claim the credit to inflate their refunds. (IR-2015-21)
• Frivolous Tax Arguments: Taxpayers should avoid using frivolous tax arguments to avoid paying their taxes. Promoters of frivolous schemes encourage taxpayers to make unreasonable and outlandish claims to avoid paying the taxes they owe. These arguments are wrong and have been thrown out of court. While taxpayers have the right to contest their tax liabilities in court, no one has the right to disobey the law or disregard their responsibility to pay taxes. The penalty for filing a frivolous tax return is $5,000. (IR-2015-23)

Additional information about tax scams is available on IRS social media sites, including YouTubehttp://www.youtube.com/irsvideos and Tumblr http://internalrevenueservice.tumblr.com, where people can search “scam” to find all the scam-related posts.

Source: Internal Revenue Service, IR-2015-26, Feb. 9, 2015

TurboTax resumes filing state returns

Intuit,  the tax preparation software company that produces TurboTax, announced Friday that TurboTax has resumed e-filing of state income tax returns.  The company continues to work with the states as they build their own anti-fraud capabilities and will share best practices as it works toward the best interests of the taxpayer.

The company temporarily paused transmissions upon seeing an increase in suspicious filings and attempts by criminals to use stolen identity information to file fraudulent state tax returns and claim tax refunds. During that time, Intuit worked with states that had raised concerns over state tax fraud.

“Nothing is more important to us than the safety of our customers’ data,” said Brad Smith, Intuit president and chief executive officer. “We are taking this issue very seriously and from the moment it emerged it has been all-hands-on-deck.  We’ll continue to remain vigilant, but I am more than pleased that we were able to resume transmission for our customers within about 24 hours.”  

After working with third-party security expert Palantir on a preliminary examination of recent fraud activities, Intuit believes that these instances of fraud did not result from a security breach of its systems. As a result of that examination, which is ongoing, Intuit implemented targeted security measures to combat the type of fraudulent tax activity that it is seeing.  These additional steps include the implementation of Multi-Factor Authentication, a proven technology for protection against identity theft.

To assist any customers who believe they are victims of tax fraud, Intuit has implemented a plan that includes a dedicated toll-free number, 800-944-8596, with direct access to specially trained identity protection agents who will provide comprehensive support and filing assistance.

Last updated: February 7, 2015 2:50 PM

Filing Form 1099 – an overview

If you made certain payments during the tax year, you are required by the IRS to send a Form 1099 to the recipient of the payment and file a copy with the IRS.

There are many different versions of Form 1099 for different types of payments.  The following table sets forth the filing requirements for each type of Form 1099 you may need to file.

Form 1099 Descriptions, Requirements, and Due Dates

1099 Form	Types of Payment Reported	Minimum Reporting Requirement*	Date Due to Recipient	Date Due to IRS
1099-A	Information about the acquisition or abandonment of property that is security for a debt for which you are the lender	Any amount	Jan. 31	Feb. 28
1099-B	Sales or redemptions of securities, futures transactions, commodities, and barter exchange transactions	Any amount	Feb. 15	Feb. 28
1099-C	Cancellation of a debt	$600	Jan. 31	Feb. 28
1099-CAP	Information about cash, stock, or other property from an acquisition of control or the substantial change in capital structure of a corporation	$1,000	Jan. 31	Feb. 28
1099-DIV	Distributions, such as dividends, capital gain distributions, or nontaxable distributions, that were paid on stock and liquidation distributions	$10 ($600 or more for liquidations)	Jan. 31	Feb. 28
1099-G	Unemployment compensation, state and local income tax refunds, agricultural payments, and taxable grants	$10	Jan. 31	Feb. 28
1099-H	Advance payments of health insurance premiums made under the Health Coverage Tax Credit	Any amount	Jan. 31	Feb. 28
1099-INT	Interest income	$10 ($600 for certain business-related interest income)	Jan. 31	Feb. 28
1099-K	Merchant card (credit and debit card) payments; third party network payments (such as PayPal)	$20,000 in total transactions	Jan. 31	Feb. 28
1099-LTC	Long-term care benefits, including accelerated death benefits	Any amount	Jan. 31	Feb. 28
1099‑MISC	nonemployee compensation (including contract payments, commissions, reimbursements, awards, and bonuses) rental income royalties attorney fees board of directors fees medical service fees proceeds from direct sales of consumer products for resale crop insurance proceeds payments to fishing boat crew members Indian gaming profits paid to tribal members punitive damages awarded in court “golden parachutes” substitute dividends and tax-exempt interest payments income from a nonqualified deferred compensation plan	$600 for non-employee compensation $10 for royalties, substitute dividends, and tax-exempt interest payments any amount for other sources	Jan. 31	Feb. 28
1099‑OID	Original issue discounts	$10	Jan. 31	Feb. 28
1099‑PATR	Distributions from co-ops	$10	Jan. 31	Feb. 28
1099-Q	Distributions from Coverdell ESAs and Qualified Tuition Programs	Any amount	Jan. 31	Feb. 28
1099-R	Distributions from profit-sharing or retirement plans, individual retirement arrangements (IRAs), annuities, pensions, insurance contracts, survivor income benefit plans, permanent and total disability payments under life insurance contracts, charitable gift annuities, etc.	$10	Jan. 31	Feb. 28
1099-S	Sale or exchange of any ownership interest land, permanent structures (including any residential, commercial, or industrial building), condominium unit, stock in a cooperative housing corporation, or standing timber	$600	Jan. 31	Feb. 28
1099-SA	Distributions from made from a health savings account (HSA), Archer medical savings account (Archer MSA), or Medicare Advantage MSA (MA MSA)	Any amount	Jan. 31	Feb. 28

*Minimum Reporting Requirement: You are required to file a 1099 if the sum of all the payments you made during the year to any one recipient was this amount or more.

Payments to Corporations and Partnerships

Generally, payments to corporations are not reportable. However, you must report payments to corporations for the following.

• Medical and health care payments (Form 1099-MISC),
• Withheld federal income tax or foreign tax,
• Barter exchange transactions (Form 1099-B),
• Substitute payments in lieu of dividends and tax-exempt interest (Form 1099-MISC),
• Acquisitions or abandonments of secured property (Form 1099-A),
• Cancellation of debt (Form 1099-C),
• Payments of attorneys’ fees and gross proceeds paid to attorneys (Form 1099-MISC),
• Fish purchases for cash (Form 1099-MISC),
• The credits for qualified tax credit bonds treated as interest and reported on Form 1099-INT,
• Merchant card and third-party network payments (Form 1099-K), and
• Federal executive agency payments for services (Form 1099-MISC).

Reporting generally is required for all payments to partnerships. For example, payments of $600 or more made in the course of your trade or business to an architectural firm that is a partnership are reportable on Form 1099-MISC.

How Do I File a 1099?

1099s are filed on paper only. Unlike other tax forms, 1099s cannot generally be printed out at home on a desktop printer. Blank 1099s are printed on special paper. You can obtain the forms for free from the IRS or buy them at office supply stores.

Each Form 1099 comes with 5 copies. You write or type on the top copy and it transfers down onto each copy, like carbon paper. You fill out the 1099 and send Copy A to the IRS, Copy 1 to the appropriate state tax agency, Copy B and Copy 2 to the income’s recipient (they get two copies so they can attach one to their return and keep one), and you keep Copy C for your records.

After you have filled out all of your 1099 forms for the year, you need to fill out a Form 1096 as well. Form 1096 summarizes all of your 1099 forms and is filed with the IRS.

While the forms must be filed on paper, they can be transmitted to the IRS through the FIRE (Filing Information Returns Electronically) system.

All Form 1099 filers must have an EIN. If you have not previously filed a Form 1099 or other return, you must obtain an EIN and include it on each Form 1099 that you file.

Last updated: January 30, 2015

Obama abandons proposal to axe college savings plans

According to the New York Times, the White House said President Obama will back off from his proposal to effectively end “529” college savings accounts.  The plan to eliminate the popular program elicited strong negative reactions from both Republican and Democrat politicians, as well as parents.

White House economists believed taking away the tax advantage of the 529 plan for higher income families was a simple matter of tax fairness.  More than 70% of the tax benefits of the current 529 plans goes to families with household incomes of more than $200,000. The concept was to shift the billion-dollar savings over 10 years from ending the 529 plans into the proposed expansion of a new tuition tax credit directed more clearly to the middle class.

However, according to the College Savings Foundation, a consortium of financial institutions backing 529s, close to 10 percent of 529 account holders have incomes below $50,000, and more than 70 percent of the total number of accounts are owned by households with incomes below $150,000. So while the dollars in the plans of those with incomes below $150,000 is much less, the number of families who receive some benefit is quite significant.

Read the full article here.

Image: TaxCredits.net

How to Apply for an EIN

Applying for an Employer Identification Number (EIN) is a free service offered by the Internal Revenue Service. Beware of websites on the Internet that charge for this free service.

Apply Online
The Internet EIN application is the preferred method for taxpayersto apply for and obtain an EIN from the IRS. Once the application is completed, the information is validated during the online session, and an EIN is issued immediately. The online application process is available for all entities whose principal business, office or agency, or legal residence (in the case of an individual), is located in the United States or U.S. Territories. The principal officer, general partner, grantor, owner, trustor etc. must have a valid Taxpayer Identification Number (Social Security Number, Employer Identification Number, or Individual Taxpayer Identification Number) in order to use the online application.

Apply by Fax
Taxpayers can fax the completed Form SS-4  application to their state fax number (see Where to File Your Taxes (for Form SS-4)), after ensuring that the Form SS-4 contains all of the required information. If it is determined that the entity needs a new EIN, one will be assigned using the appropriate procedures for the entity type. If the taxpayer’s fax number is provided, a fax will be sent back with the EIN within four (4) business days.

Apply by Mail
The processing timeframe for an EIN application received by mail is four weeks. Ensure that the Form SS-4 contains all of the required information. If it is determined that the entity needs a new EIN, one will be assigned using the appropriate procedures for the entity type and mailed to the taxpayer. Find out where to mail Form SS-4 on the Where to File Your Taxes (for Form SS-4) page.

Apply by Telephone – International Applicants
International applicants may call 267-941-1099 (not a toll-free number) 6:00 a.m. to 11:00 p.m. (Eastern Time) Monday through Friday to obtain their EIN. The person making the call must be authorized to receive the EIN and answer questions concerning the Form SS-4. Complete the Third Party Designee section only if you want to authorize the named individual to receive the entity’s EIN and answer questions about the completion of Form SS-4. The designee’s authority terminates at the time the EIN is assigned and released to the designee. You must complete the signature area for the authorization to be valid.

Other Important Information

Daily Limitation of an Employer Identification Number. The Internal Revenue Service limits Employer Identification Number (EIN) issuance to one per responsible party per day. This limitation is applicable to all requests for EINs whether online or by fax or mail.  In order to identify the correct individuals and entities applying for EINs, language changes have been made to the EIN process.

Third Party Authorization. If a person other than the taxpayer is submitting the Form SS-4, the Third Party Designee section must be completed at the bottom of the Form SS-4. The Form SS-4 must also be signed by the taxpayer for the third party designee authorization to be valid. The Form SS-4 must be mailed or faxed to the appropriate service center. The third party designee’s authority terminates at the time the EIN is assigned and released to the designee.

Illinois delays start of tax filing

The Illinois Department of Revenue has announced that Illinois taxpayers won’t be able to file their 2013 income taxes until the end of January — a two-week delay.

The delay follows a similar federal postponement. Refunds and the April 15 filing deadline aren’t affected.

The Internal Revenue Service is delaying the start of the tax-filing season because of last year’s government shutdown that furloughed workers who were programming and testing tax-processing systems.

Now, state and federal returns can be filed starting Jan. 31.

Sue Hofer, a spokeswoman for the Illinois Department of Revenue, says the two-week delay isn’t expected to cause problems in Illinois because “very few people file in January anyway.” About 80 percent of Illinois returns were filed electronically in 2013.

Read more here: http://www.sj-r.com/article/20140115/NEWS/140119570/-1/json

IRS announces 2014 filing season delay due to government shutdown

WASHINGTON — The Internal Revenue Service today announced a delay of approximately one to two weeks to the start of the 2014 filing season to allow adequate time to program and test tax processing systems following the 16-day federal government closure.

The IRS is exploring options to shorten the expected delay and will announce a final decision on the start of the 2014 filing season in December, Acting IRS Commissioner Danny Werfel said. The original start date of the 2014 filing season was Jan. 21, and with a one- to two-week delay, the IRS would start accepting and processing 2013 individual tax returns no earlier than Jan. 28 and no later than Feb. 4.

The government closure came during the peak period for preparing IRS systems for the 2014 filing season. Programming, testing and deployment of more than 50 IRS systems is needed to handle processing of nearly 150 million tax returns. Updating these core systems is a complex, year-round process with the majority of the work beginning in the fall of each year.

About 90 percent of IRS operations were closed during the shutdown, with some major workstreams closed entirely during this period, putting the IRS nearly three weeks behind its tight timetable for being ready to start the 2014 filing season. There are additional training, programming and testing demands on IRS systems this year in order to provide additional refund fraud and identity theft detection and prevention.

“Readying our systems to handle the tax season is an intricate, detailed process, and we must take the time to get it right,” Werfel said. “The adjustment to the start of the filing season provides us the necessary time to program, test and validate our systems so that we can provide a smooth filing and refund process for the nation’s taxpayers. We want the public and tax professionals to know about the delay well in advance so they can prepare for a later start of the filing season.”

The IRS will not process paper tax returns before the start date, which will be announced in December. There is no advantage to filing on paper before the opening date, and taxpayers will receive their tax refunds much faster by using e-file with direct deposit. The April 15 tax deadline is set by statute and will remain in place. However, the IRS reminds taxpayers that anyone can request an automatic six-month extension to file their tax return. The request is easily done with Form 4868, which can be filed electronically or on paper.

IRS processes, applications and databases must be updated annually to reflect tax law updates, business process changes, and programming updates in time for the start of the filing season.

The IRS continues resuming and assessing operations following the 16-day closure. The IRS is seeing heavy demand on its toll-free telephone lines, walk-in sites and other services from taxpayers and tax practitioners.
During the closure, the IRS received 400,000 pieces of correspondence, on top of the 1 million items already being processed before the shutdown.

The IRS encourages taxpayers to wait to call or visit if their issue is not urgent, and to continue to use automated applications on IRS.gov whenever possible.

“In the days ahead, we will continue assessing the impact of the shutdown on IRS operations, and we will do everything we can to work through the backlog and pent-up demand,” Werfel said. “We greatly appreciate the patience of taxpayers and the tax professional community during this period.”

Source: IR-2013-82, Oct. 22, 2013

5 Tax Tips You May Be Forgetting

A recent article in The Street offers up a few overlooked but highly effective tax tips for Americans looking to save time and money, from Michael Gutter, an associate business and finances professor at the University of Florida:

1. Get free help. If you earn less than $51,000 per year, you likely qualify for help from the IRS volunteer income tax assistance (VITA) program.

2. Tax credit for kids. The tax code allows plenty of good deductions for parents with children — even kids in college.

3. Direct to savings. Gutter advises having your tax refund sent right to your bank savings account. That protects you from making “impulse purchases.”

4. Take a mulligan. Amend previous years’ tax returns to grab deductions or tax credits you missed the first time.

5. IRA contributions. Gutter reminds tax filers that the deadline for making tax-deductible IRA contributions from income earned in 2012 is April 15.

For more detail, read the full article.

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