Taxes Part 4

WASHINGTON, UNITED STATES

03.18.1998

Courtesy Story

Defense.gov         

If you can't face doing your taxes, don't have the time or have a complicated return or tax situation, you may want to hire a professional tax preparer, said Internal Revenue Service officials.

Don't rush out and hire the first person who offers tax preparation service or open the telephone book, close your eyes and point to a tax preparer, the officials advised. When selecting a tax preparer, you need to do a little research to find the one best suited to you and your tax situation, they said. They recommended:

IRS officials said one important point to keep in mind is that the tax preparer needs to be around after the tax filing season. A fly-by-night agency that closes up shop after April 15 won't be around to help you answer questions the IRS may have about your return.  Ensure the preparer carries liability insurance in case there's a mistake on the tax return and you end up owing a lot of extra money, the officials added.

Some of the questions to ask a tax preparer are:

To make sure your tax experience goes smoothly, have all the necessary financial paperwork ready for the tax preparer. IRS officials said this includes canceled checks, W-2 forms, and dividend and interest statements.

Don't do what so many comedy shows highlight at tax time -- dump a shoebox or grocery bag full of receipts and other records on the preparer's desk. It may garner a laugh or two, but if nothing else, the preparer's bill will be higher because of the time spent sorting your financial mess, the officials said.

And the last, most important point, they said: Whether you prepare your own tax return or hire someone else to, the IRS holds you responsible for its accuracy.

*****
Use Form 1040X to Amend Tax Returns

American Forces Press Service
 
WASHINGTON -- You blew it. You filed your federal tax return but forgot to include savings account interest from that bank back home.

Don't worry, Internal Revenue Service officials said. You can easily report updates and changes to your return by filing an IRS Form 1040X, "Amended U.S. Individual Income Tax Return."

The officials said the amendment form should be used when you did not report some income, claimed deductions or credits you were not entitled to, failed to claim deductions or credits you were entitled to, or should have used a different filing status, or you filed an incomplete return to beat the April 15 deadline. The 1040X corrects your Form 1040, 1040A, 1040EZ and even a previous 1040X, added tax officials.

If you have an additional refund due, wait until you receive the original refund before filing the amendment, IRS officials recommended. If you file the 1040X while your original tax return is being processed, you could confuse the system and delay your refund.

The three-column form is easy to complete, said IRS officials. Column A shows the figures you originally reported, Column C shows the correct figures, and Column B is the difference between columns A and C. General instructions and filing addresses are on the back of the form.

If the changes require another form or schedule, such as the one for earned income credit, it must be completed and attached to the Form 1040X.

IRS officials said you generally can claim a refund within three years of your original filing date or two years from the time you actually paid the tax you now claim wasn't owed. Don't forget to enter the tax year that you are amending on the form.

If you need to amend more than one return, use a separate envelope for each Form 1040X.

IRS officials said keep in mind an amended federal tax return may affect your state tax return. Be sure to check your state tax forms to see how to report changes.

Direct questions concerning your situation and amended returns, to a local IRS office or call [phone].

For free copies of IRS forms and publications, call [phone] or write to:

IRS
Forms Distribution Center
PO Box 85627
Richmond, VA 23285.

*****

IRS Office Solves Problems

American Forces Press Service
 
WASHINGTON --If you run into problems with the Internal Revenue Service and can't seem to get them taken care of, call the IRS Problem Resolution Program office for help.

The office was specifically set up to help taxpayers who have problems that other IRS personnel cannot or will not handle or correct, said IRS officials.

Normal IRS channels handle most problems. Use the problem resolution office when these channels have failed or you've gone as far as you can with them, they said. The program isn't for those situations when a formal appeal or administrative procedure is available, they added.

Tax specialists staff the Problem Resolution Program office. Used to complex tax issues, they are usually able to handle the problem or complaint in just a few days. Some of the areas they tackle include:

The Problem Resolution Program tax assisters can't handle certain things. IRS officials said these include appeals of decisions made in tax examinations, Privacy Act inquiries, hiring practice complaints and Freedom of Information Act requests.

For help in resolving a problem, call the local IRS office or call [phone]. Hearing-impaired individuals who have a telecommunication device for the deaf may call [phone].

IRS officials said you may write to the Problem Resolution Office at the service center which processed your federal tax return. Be sure to include your full name, Social Security number, complete return address, daytime telephone number and as much information on the problem and steps taken to solve it as you can. In addition, include copies of any paperwork you have on your problem that you sent or the IRS sent.

Individuals living overseas who need the Problem Resolution Program office may write to:

 Internal Revenue Service
 Assistant Commissioner (International)
 Problem Resolution Program Office
 950 L'Enfant Plaza SW
 Washington, DC 20024.

Specific information on the program can be found in IRS Publication 1546, "How to Use the Problem Resolution Program of the IRS." For a free copy, call [phone] or write to:

IRS
Forms Distribution Center
PO Box 85627
Richmond, VA 23285.

*****

To Itemize or Not to Itemize

American Forces Press Service
 
WASHINGTON -- When doing your federal income taxes, think about the personal expenses you had that may lower your taxes, Internal Revenue Service officials said.

When it comes to claiming deductions, they said, you have only two options: Take the standard deduction, or itemize if you have more in allowable deductions. To decide which to claim, the officials suggested filling out one Form 1040 return using the standard deduction and another with itemized expenses. File whichever produces the lower tax.

If you itemize, you must use the long Form 1040, IRS officials added. Expenses that may be itemized include:

IRS officials said the standard deduction varies on your filing status, age and if you are blind. The standard deduction for this year's tax form is $4,150 if single; $6,050 for a head of household; $6,900 for marrieds filing jointly; $3,450 for a married filing separately; and $6,900 for a qualifying widow(er) with dependent child.

Additional amounts are allowed if you or your spouse is age 65 or older by Jan. 1, 1998, or blind.

IRS officials said married couples filing separately must keep one thing in mind: If one spouse itemizes, the other also must itemize.

For specific information on itemizing, check your Form 1040 and IRS Publication 17, "Your Federal Income Tax." For a free copy of IRS publications and forms, call [phone] or write to:

IRS
Forms Distribution Center
PO Box 85627
Richmond, VA 23285.

*****

Everyone Wins With Electronically Filed Tax Returns

American Forces Press Service
 
WASHINGTON -- Whether you file your federal tax return by mail, or computer or other electronic means, the Internal Revenue Service is happy to take it.

But, IRS officials said, returns filed electronically or by computer-generated forms cut the agency's processing time. That, they said, sometimes means you get your refund in as little as two weeks instead of the normal two months.

They said electronic returns are processed faster because they tend to have fewer mistakes. Taxpayers' computer software, for instance, catches math and other common errors. Another point favoring electronic filing is that you can file early in the season, and if you owe additional taxes, you have until April 15 to pay them.

If you decide to use an electronic tax filer, check the local area for an IRS-accepted preparer or transmission service. Ask about filing costs and services.

IRS officials said to double-check your return before transmitting to the tax agency because you are ultimately responsible for everything in it whether you did the paperwork or hired or someone else.

An IRS-accepted electronic filer sends your return to the IRS. If the information is correct, the tax return is accepted and stored on tape. Then, the Treasury Department issues a refund check or directly deposits the refund into your account at a financial institution.

The electronic filing program began in 1986. IRS officials said about 25,000 people used the service that year -- more than 20 million took advantage of it during the filing season last year.

If you decide to use a tax preparer or filer, they said, keep a few things in mind:

Another way completing federal tax forms has gotten easier
is through the use of computer programs and the 1040PC form. IRS
officials said some programs print only a tax return answer sheet
-- the line numbers found on the tax form and your responses.
Other programs print filled-out replica forms.
 After completing and printing the return, you mail it to the
IRS. In some instances, you may be able to send the return by
computer modem to a central electronic mail facility that will
transmit your return to the IRS.

Some benefits of filing your tax form electronically include:

Software and 1040PC forms are not available through the IRS, but can be found at most computer software stores.

Direct questions on computer or electronic filing to your local IRS office or call [phone]. The IRS Tele-Tax service also has several recorded tapes on these subjects: Call [phone] and ask for Topic 251, "1040PC Tax Return"; Topic 252, "Electronic Filing"; Topic 253, "Substitute Tax Forms"; and Topic 255, "How to Choose a Tax Preparer."

Another IRS initiative to make filing easier and quicker is TeleFile. IRS officials said the tax agency notifies eligible previous users of the Form 1040EZ who may use TeleFile to phone in their tax information.

The process is simple, they explained. Affected taxpayers dial a toll-free number from a touch-tone phone and follow the instructions to enter their wages, interest and taxes withheld. Within 10 minutes, the IRS computes the refund or taxes due and provides a confirmation number. Taxpayers then sign a form and mail it to the appropriate IRS tax center.

IRS officials said that before calling TeleFile to file your taxes, make sure you have your W-2 form(s), interest statements and Social Security number handy.

For information on this program, call Tele-Tax at toll-free [phone] and ask for Topic 255, "TeleFile."

*****

Tax Rules Vary for Senior Citizens

American Forces Press Service
 
WASHINGTON -- Senior citizens should check federal tax rules carefully because the government reserves a number of special tax breaks for them.

Internal Revenue Service officials said, for example, individuals age 65 or older may not have to file a federal return if their income is less than certain minimums. Single seniors with an income below $7,800 do not have to file; if married, the limit is $13,000 if filing jointly and one spouse is 65, or  $13,800 if both are 65; $9,700 for a senior head of household; and $10,350 for a qualifying widow(er) with dependent child.

Other breaks include a higher standard deduction, a credit for the elderly or the disabled, and a break on Social Security benefits depending on marital and filing status. The IRS and volunteer organizations provide free tax counseling and assistance to the elderly -- in this case, age 60 or older.

IRS officials said taxpayers 55 or older who sold a house between May 6 and Aug. 6, 1997, must decide how to report gains on their tax returns. Under the Taxpayer Relief Act signed into law last August, couples may exclude up to $500,000 (singles, $250,000) every two years as many times as they qualify. The previous law allowed a one-time $125,000 exclusion only to persons 55 or older. Specific rules and information on home sales are available from the local IRS office.

Tax officials stressed that seniors and caregivers check the tax rules carefully. Many tax benefits and breaks apply, but only under certain circumstances. If you have questions, check with the local IRS office or call [phone]. Individuals with a hearing impairment and access to a telecommunications device for the deaf may call the IRS at [phone] during normal business hours.

Some publications of possible interest to seniors and caregivers include:

Check with your installation tax assistance office or local library for copies of these and other tax forms and publications. Or call IRS at [phone] or write to:

IRS
Forms Distribution Center
PO Box 85627
Richmond, VA 23285.

If you have questions, you may want to use the IRS Tele-Tax system, said tax officials. The simple-to-use, round-the-clock, touch-tone phone system offers brief looks at more than 140 different tax topics. Call the number listed in your tax booklet or [phone]. Or order topics by dialing 703-368-9694 from your fax machine, follow the instructions and then hang up to allow return transmission.

Some topics of possible interest to seniors include:

*****

Taxpayers Do Have Rights

American Forces Information Service

WASHINGTON -- Thanks to two congressional acts, the Internal Revenue Service has to tell you in plain, easy-to-understand language what action it may be taking against you.

IRS officials said a 1988 bill, known as the Taxpayer Bill of Rights, generally protects you during tax agency examinations and tax collection procedures. In addition, Taxpayer Bill of Rights 2 was signed into law in 1996 and ensures additional rights and protections.

The officials said the IRS is charged to collect the correct amount of taxes in the fairest, least costly manner possible. The two bills guarantee that taxpayers will pay no more than their fair share and will not be mistreated.

Some of the basic taxpayer rights addressed in the two laws are:

In addition, the laws discuss your rights to privacy and confidentiality, your right to appeal an examiner's audit findings, audit location rules, possible court action against the U.S. government, your right to interest from the IRS on any refund it delays in paying you, and your right to fair, courteous and considerate treatment.

For more details on taxpayer rights and the IRS, read IRS Publication 1, "Your Rights as a Taxpayer." Check with local libraries, installation tax assistance office or post office for a copy. If you live overseas, the nearest U.S. embassy or
consulate may have a copy.

You also can request a free copy of this and other IRS publications by calling [phone]. Or write to:

IRS
Forms Distribution Center
PO Box 85627
Richmond, VA 23285.

*****

Don't Forget Those State Taxes!

American Forces Press Service
 
WASHINGTON -- The federal taxes are finished and on their way to the Internal Revenue Service. Time to kick back and take it easy?

Not so fast, IRS officials said. Most taxpayers still have state tax forms to file.

They said each state's tax rules are different. For example, several have no income tax. Others allow you to deduct your federal tax from state taxable income. Some states require service members to file and pay state taxes. Some just require them to file a tax form, and others don't require even that.

The officials said state tax rates vary. Some tax singles and married couples at the same rate; others use different rates, like the federal tax system.

If you are in the military and don't know your state tax situation, check with your installation finance officer or state tax agency as soon as possible, said IRS officials. The IRS and state tax agencies work in close concert, they said, so you stand little chance of avoiding taxes in your state of record, especially if you intend to go back when you finish your military duty. If you haven't been filing and paying all along, you could find yourself with a whopping tax bill, interest and penalties.

Income from service members' part-time jobs and spouses' full- and part-time jobs is subject to the tax rules of the duty locale. Texas has no income tax, for instance, but California does. You also may need to file a state return for your home of record even though you aren't stationed there or don't owe tax.

IRS officials said state tax situations can be extremely complicated and advise you direct questions to your installation tax assistance office or the tax agency for your state.

Department of Revenue
Income Tax Forms
PO Box 327410
Montgomery, AL 36132
[phone]

Department of Revenue
State Office Building
PO Box 110420
Juneau, AK 99811
[phone]
www.revenue.state.ak.us

Department of Finance and Administration
Revenue Division
PO Box 8055
Little Rock, AR 72203
[phone]

Franchise Tax Board
Tax Forms Request
PO Box 942840
Sacramento, CA 94140
[phone]
www.ftb.ca.gov

Department of Revenue
1375 Sherman St.
Denver, CO 80261
[phone]
www.state.co.us

Department of Revenue Services
State Tax Department
25 Sigourney St.
Hartford, CT
[phone]

Department of Finance
Division of Revenue
Delaware State Building
820 N. French St.
Wilmington, DE 19801
[phone]
www.state.de.us/govern/agencies/revenue/revenue.htm

Department of Finance and Revenue
Room 1046
300 Indiana Ave. N.W.
Washington, DC 20001
[phone]

Department of Revenue
Supply Department
168A Blounstown Highway
Tallahassee, FL 32304
[phone]

Department of Revenue
Income Tax Unit
PO Box 38007
Atlanta, GA 30334
[phone]

First Taxation District
830 Punchbowl St.
PO Box 259
Honolulu, HI 96809
[phone]
www.hawaii.gov/icsd/tax/tax.htm

State Tax Commission
PO Box 36
Boise, ID 83722
[phone]

Department of Revenue
101 W. Jefferson
Springfield, IL 62719
[phone]
www.revenue.state.il.us

Department of Revenue
100 North Senate Ave.
Room N105
Indianapolis, IN 46204
[phone]

Department of Revenue and Finance
Taxpayer Services Section
PO Box 10457
Des Moines, IA 50306
[phone]
www.state.ia.us/government/drf/index.htm

Department of Revenue
Division of Taxation
Taxpayer Assistance Bureau
PO Box 12001
Topeka, KS 66612
[phone]
www.ink.org/public/kdor

Revenue Cabinet
Property and Mail Service
200 Fair Oaks Lane
Bldg. 2
Frankfort, KY 40602
[phone]
[e-mail]

Department of Revenue
PO Box 201
Baton Rouge, LA 70821
[phone]
www.rev.state.la.us

Bureau of Taxation
Income Tax Section
State Office Bldg.
Station 24
Augusta, ME 04332
[phone]
www.state.me.us/taxation

Comptroller of the Treasury
Revenue Administration
110 Carroll St.
Annapolis, MD 21411
[phone]
www.comp.state.md.us

Department of Revenue
Customer Service Bureau
PO Box 7010
Boston, MA 02204
[phone]
www.magnet.state.ma.us/dor/dorpg.htm

Department of the Treasury
Revenue Administrative Services
The Treasury Building
430 W. Allegan St.
Lansing, MI 48922
[phone]

Department of Revenue
Mail Station 4450
St. Paul, MN 55146
[phone]
www.taxes.state.mn.us

State Tax Commission
750 South Galatin
Jackson, MS 39204
[phone]

Department of Revenue
PO Box 3022
Jefferson City, MO 65105
[phone]
www.state.mo.us/dor/tax

Department of Revenue
Income Tax Division
PO Box 5805
Helena, MT 59604
[phone]
www.mt.gov/revenue/rev.htm

Department of Revenue
PO Box 94818
Lincoln, NE 68509
[phone]
www.nol.org/revenue

Department of Taxation
Capitol Complex
Carson City, NV 89710
[phone]

Department of Revenue Administration
State of New Hampshire
61 S. Spring St.
Concord, NH 03301
[phone]
www.state.nh.us/

Division of Taxation
CN 269
Trenton, NJ 08646
[phone]
www.state.nj.us/treasury/taxation/

Taxation and Revenue Department
PO Box 630
Santa Fe, NM 87504
[phone]
www.state.nm.us/tax

Department of Taxation and Finance
Taxpayer Service Bureau
W. Averell Harriman Campus
Albany, NY 12227
[phone]

New York City
Department of Finance
Bureau of Tax Collection
25 Elm Place
Brooklyn, NY 11201
[phone]

Department of Revenue
PO Box 25000
Raleigh, NC 27640
[phone]

Office of State Tax Commissioner
State Capitol
600 E. Boulevard Ave.
Bismarck, ND 58505
[phone]

Department of Taxation
Income Tax Division
PO Box 2476
Columbus, OH 43266
[phone]

Tax Commission
Income Tax Division
2501 Lincoln Blvd.
Oklahoma City, OK 73194
[phone]

Department of Revenue
955 Center St. NE
Salem, OR 97310
[phone]
www.dor.state.or.us

Department of Revenue
Strawberry Square
Harrisburg, PA 17128
[phone]
www.revenue.state.pa.us

Division of Taxation
One Capitol Hill
Providence, RI 02908
[phone]
www.tax.state.ri.us

Tax Commission
Individual Income Tax Division
PO Box 125
Columbia, SC 29214
[phone]
www.state.sc.us/dor/dor.html

Department of Revenue
700 Governors Dr.
Pierre, SD 57501
[phone]
www.state.sd.us/state/executive/revenue/revenue.html

Department of Revenue
Andrew Jackson State Office Bldg.
500 Deaderick St.
4th Floor
Nashville, TN 37242
[phone]
www.state.tn.us/revenue

Comptroller of Public Accounts
State of Texas
111 West 6th
Starr Building
Austin, TX 78701
[phone]
www.window.state.tx.us

State Tax Commission
210 North 1950 West
Salt Lake City, UT 84134
[phone]
www.tax.ex.state.ut.us

Department of Taxes
109 State St.
Montpelier, VT 05609
[phone]

Department of Taxation
Taxpayers Assistance
Attn: Forms Division
PO Box 1880
Richmond, VA 23282
[phone]
www.state.va.us/tax/tax.html

Department of Revenue
General Administration Bldg.
PO Box 47478
Olympia, WA 98504
[phone]
www.ga.gov/dor/wador.htm

State Tax Department
Taxpayer Service Division
PO Box 3784
Charleston, WV 25337
[phone]

Department of Revenue
Shipping and Mailing Section
PO Box 8903
Madison, WI 53708
[phone]
www.dor.state.wi.us

The State of Wyoming
Revenue Department
Herschler Building
122 W. 25th
Cheyenne, WY 82002
[phone]
www.state.wy.us

Story by American Forces Press Service

• Date Taken: 03.18.1998
• Date Posted: 07.04.2025 00:12
• Story ID: 528190
• Location: WASHINGTON, US