Did you know the IRS offers tax help to taxpayers with unresolved tax issues? The IRS’s Taxpayer Advocate Service (TAS), an independent organization within the IRS, provides assistance to taxpayers trying to resolve on-going tax problems or looking for answers to their tax questions.

To qualify for the Taxpayer Advocate Service, taxpayers must be experiencing economic harm or significant cost, haven’t resolved their tax within 30 days, haven’t had their tax issues resolved by the date promised by the IRS, or believe that an IRS procedure is not working as it should.

The Taxpayer Advocate Service is your voice at the IRS. The service is free, confidential and personalized, and tax help is available to businesses and individuals.

TAS employees are tax professionals who know how the IRS works and how to navigate it. They will listen to your tax problem, help you understand what needs to be done to resolve it, and see you through the entire process, until your tax problem is resolved.

To resolve your tax issues or just get tax help, find your local IRS taxpayer advocate online or by phone at 1-877-777-4778.

You can learn about your rights and responsibilities as a taxpayer with the IRS tax tool kit.

source: irs.gov

The IRS is hosting a “Tax Help” Open House this weekend. The Internal Revenue Service has announced that on Saturday, June 5, 2010, IRS offices in all 50 states will be open to provide free tax help to individual taxpayers. Approximately 200 IRS offices, at least one in every state, will participate. Each office will be open from 9:00 a.m. until 2:00 p.m. local time.

The IRS Tax Centers will provide assistance to taxpayers dealing with notices and payments, tax return preparation, and other tax related issues.
Take advantage of the free tax help from the IRS and get answers to your tax questions.

Find the participating IRS tax offices in your state.

source: irs.gov

Tax Day, April 15, is quickly approaching. It is when federal income tax returns are due and the last day U.S. citizens and resident aliens can mail their returns without incurring penalties. Even with the tax deadline just days away, individuals having difficulty preparing their income tax return can still get free tax help.

The IRS Volunteer Income Tax Assistance (VITA) and the Tax Counseling for the Elderly (TCE) Programs offers free tax help for taxpayers. The programs can help taxpayers by answering tax questions, offering tax advice, discussing tax problems and providing free tax return preparation assistance. Most VITA sites also offer free electronic filing (e-filing)

To take advantage of the VITA program, individuals must earn less than $49,000 and cannot prepare their own tax returns.

The Tax Counseling for the Elderly Program provides free tax help to people 60 and older. TCE is run by trained volunteers who provide free income tax counseling, answer income tax questions and help the elderly with tax problems.

Individuals in the military can also take advantage of the Volunteer Income Tax Assistance (VITA) Program through the Armed Forces Tax Council (AFTC). The AFTC consists of the tax program coordinators in all branches of the military, including the Coast Guard.

Members of the military and their families can get help with free tax preparation, having their military specific tax questions answered and consultation on any tax problem they may have.

When visiting the VITA/TCE sites don’t forget to bring the following:

• Proof of identification (Social Security Cards for you, your spouse and dependents)
• Wage and earning statement(s) Form W-2, W-2G, 1099-R, from all employers
• Interest and dividend statements from banks (Forms 1099)
• Bank routing numbers and account numbers for Direct Deposit
• Total paid for daycare provider and the daycare provider’s tax identifying number
• A copy of last year’s federal and state returns if available (if available)
• To file taxes electronically on a married-filing-joint tax return, both spouses must be present to sign the required form

For more information on TCE, call 1-800-829-1040 or log onto www.irs.gov

In this economic climate it makes sense to take advantage of the free tax help provided by the IRS.

source: irs.gov

There are various options for payment of an outstanding federal income tax liability. Because your balance is subject to interest and a monthly late payment penalty, it is in your best interest to pay in full as soon as you can to minimize the additional charges. Penalties are also assessed for failure to file a tax return so you must file immediately even if you cannot pay your balance in full.

IRS Tax payment options allow you to pay your tax liability by sending a check or money order, made out to “United States Treasury.” You may pay by transferring money electronically from your bank account. You can even pay your federal income tax liability by credit card or debit card. Be advised that a service provider, not the IRS, may charge a convenience fee for electronic payments from your bank account or for a payment by credit card. If you cannot pay in full you should pay as much as possible to reduce the accrual of interest on your account.

You should consider financing the full payment of your income tax liability through loans, such as a home equity loan from a financial institution or a credit card cash advance. The interest rate and any applicable fees charged by a bank or credit card are usually lower than the combination of interest and penalties imposed by the Internal Revenue Code. If you cannot pay in full immediately, the IRS offers a short amount of additional time, up to 120 days, to pay in full. No fee will be charged for entering this type of payment arrangement.

Another IRS tax payment option is by installments. Tax payment installment agreement allow you to make a series of monthly payments over time. The IRS offers various options for making monthly payments such as:

1. Direct Debit from your bank account
2. Payroll Deduction from your employer
3. Payment via check or money order
4. Electronic Federal Tax Payment System (EFTPS)
5. Payment by credit card via phone or Internet, or
6. Online Payment Agreement (OPA)

A one-time installment agreement fee of $105.00 will be charged when you enter into an installment agreement unless you choose to pay through a Direct Debit from your bank account, in which case the fee is $52.00. Taxpayers with income at or below 250% of the Department of Health and Human Services poverty guidelines can apply to pay a reduced user fee of $43.00.

If you can pay your IRS tax payment in a shorter period of time, you can request a short amount of additional time, up to 120 days, to pay in full. This payment arrangement does not carry a fee.

If you decide on entering into an installment agreement, your monthly payment should be based on your ability to pay and should be an amount that can be paid each month to avoid defaulting.

If you are not able to provide full payment when you file your tax return, you can request a pre-assessment installment agreement on current tax liabilities by using the Online Payment Agreement (OPA) application on the IRS.gov website.

If you are not able to provide full payment after you have filed your tax return and received a bill from the IRS (a balance due notice), you can request an installment agreement using the Online Payment Agreement (OPA) application on the IRS.gov website.

You may also request an installment agreement by calling the toll-free number on the bill.

You will need to specify the amount you can pay and the day (1st-28th) you wish to make your payment each month. The IRS will expect to receive the payment ON the day you indicate so be sure to figure mailing time into the date you select. The IRS will respond to your request, usually within 30 days, to advise you as to whether your request has been approved, denied or more information is needed.

Direct debit or payroll deduction installment agreements provide an opportunity to make timely payments automatically and reduce the possibility of default. For a direct debit installment agreement you will need to provide your checking account number and your bank routing number to initiate the automated withdrawal of the payment.

You may contact the IRS by phone or in person, or you may submit Form 9465 (PDF), Installment Agreement Request, through the mail. The form has space for you to write in your checking account number and your bank routing number, or you may staple a voided check to the form.

To initiate a payroll deduction installment agreement, submit Form 2159, Payroll Deduction Agreement. Form 2159 must be completed by your employer. The IRS will set up a regular installment agreement for you and convert it to a payroll deduction agreement upon receipt of the completed form from your employer.

It is important not to ignore an IRS notice. If you do not pay your tax liability in full or make an alternative payment arrangement, the IRS is entitled to take collection action.

If you are unable to make any payment at this time, have your financial information available (e.g., pay stubs, lease or rental agreement, mortgage statements, car lease/loan, utilities) and call the appropriate number below to receive assistance:

Individual taxpayers: 800-829-1040
Business taxpayers: 800-829-4933

You have rights and protections throughout the collection process. If you would like information on making arrangements regarding any of the IRS tax payment options refer to Publication 594 The IRS Collection Process

source: irs.gov