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Ten Things the IRS Wants You to Know About Identity Theft Criminals use many methods to steal personal information from taxpayers. They can use your information to steal your identity and file a tax return in order to receive a refund. Here are 10 things the IRS wants you to know about identity theft so you can avoid becoming the victim of a scam artist. Identity thieves get your personal information by many different means, including stealing a wallet or purse or accessing information you provide to an unsecured Internet site. They even look for personal information in your trash. They also pose as someone who needs information through a phone call or e-mail. The IRS does not initiate contact with a taxpayer by e-mail. If you receive an e-mail scam, forward it to the IRS at phishing@irs.gov . If you receive a letter from the IRS leading you to believe your identity has been stolen, respond immediately to the name, addr...

More Than 180 Local IRS Offices Open This Saturday to Help Taxpayers WASHINGTON — The Internal Revenue Service announced today that IRS offices will be open nationwide on Saturday, March 27 from 9 a.m. to 2 p.m., local time, to help taxpayers. The location of participating offices is listed on IRS.gov . “We are holding these special open houses to give taxpayers who are struggling in these difficult economic times more opportunity to work directly with IRS employees to resolve their tax issues,” said IRS Commissioner Doug Shulman. “We will host more than 180 open houses this Saturday.” During the expanded open-house hours on Saturday, taxpayers will be able to address economic hardship issues, make payment arrangements or get help claiming any of the special tax breaks in last year’s American Recovery and Reinvestment Act , including the: Homebuyer tax credit - a refundable credit equal to 10 percent of...

IRS Provides Guidance on Identifying Numbers for Tax Return Preparers WASHINGTON — The Internal Revenue Service today issued proposed regulations allowing the IRS to require that tax return preparers use Preparer Tax Identification Numbers (PTINs) as the preparer’s identifying number on all tax returns and tax refund claims that they prepare. These regulations when final will implement some of the recommendations in Publication 4832, Return Preparer Review. “These regulations allow the IRS to better identify and match tax return preparers with the tax forms and claims they prepare. This proposed PTIN system will help us ensure taxpayers receive competent, ethical service from qualified professionals and strengthen the integrity of our tax system,” said IRS Commissioner Doug Shulman. Under the proposed regulations, the IRS will issue forms, instructions, or other guidance that will require paid tax return preparers to begin u...

Six Important Facts about Tax-Exempt Organizations Every year, millions of taxpayers donate money to charitable organizations . The IRS has put together the following list of six things you should know about the tax treatment of tax-exempt organizations. Annual returns are made available to the public . Exempt organizations generally must make their annual returns available for public inspection. This also includes the organization’s application for exemption. In addition, an organization exempt under 501(c)(3) must make available any Form 990-T, Exempt Organization Business Income Tax Return . These documents must be made available to any individual who requests them, and must be made available immediately when the request is made in person. If the request is made in writing, an organization has 30 days to provide a copy of the information, unless it makes the information widely available. Donor lists generally are not public informa...

IRS Issues 2010 Filing Season Statistics WASHINGTON –– Electronically filed tax returns are on track with last year and overall refunds are running nearly 10 percent higher so far in 2010, according to statistics issued today by the Internal Revenue Service. The statistics issued today, covering the period through March 12, show that while the overall number of tax returns filed this year is down slightly, the percentage of returns using e-file remains strong. More than 82 percent of the 69 million returns received this year have come in via e-file. Home usage of e-file is up almost 7 percent compared to this time last year. Additionally, the average federal refund totaled $3,036, an increase of $266 compared with the same period a year ago. The refund increase follows a number of federal tax incentives enacted last year as part of the American Recovery and Reinvestment Act, such as the homebuyer credit and the American Opportunity Credit. “There are several new credits and deductions ...

Errors made on tax returns may delay the processing of your tax return, which in turn, may cause your refund to arrive later. Here are nine common errors the IRS wants you to avoid to help guarantee your refund arrives on time. 1. Incorrect or missing Social Security Numbers When entering SSNs for anyone listed on your tax return, be sure to enter them exactly as they appear on the Social Security cards. 2. Incorrect or misspelling of dependent’s last name When entering a dependent’s last name on your tax return, ensure they are entered exactly as they appear on their Social Security card. 3. Filing status errors Make sure you choose the correct filing status for your situation. There are five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er) With Dependent Child. See Publication 501, Exemptions, Standard Deduction, and Filing Information to determine the filing status that best fits your needs. 4. Math e...

After reading an online article today, the conlusion is clear, you cant owe the IRS 4 cents. The article alledged that two IRS agents went to collect from a Sacremento carwash, an astonishing amount of money, 4 cents. Even though the penalties associated with this 4 cent underpayment amounted to a $203 bill, one has to ask how much did it cost to pay these agents to visit this carwash and to investigate this 4 cent oversight. Just imagine if this taxpayer forgot to pay $100. Anyway to avoid a similar situation happening to you, here are a few tips to avooid penalties. The tax filing deadline is approaching. If you don’t file your return and pay your tax by the due date you may have to pay a penalty. Here are nine things the IRS wants you to know about the two different penalties you may face if you do not pay or file on time. 1.If you do not file by the deadline, you might face a failure-to-file penalty. 2.If you do not pay by the due date, you could face a failure-to-pay penalty. 3.Th...

There are many e-mail scams circulating that fraudulently use the Internal Revenue Service name or logo as a lure. The goal of the scam – known as phishing – is to trick you into revealing personal and financial information. The scammers can then use your personal information – such as your Social Security number, bank account or credit card numbers – to commit identity theft and steal your money. Here are five things the IRS wants you to know about phishing scams. 1. The IRS does not send unsolicited e-mails about a person’s tax account or ask for detailed personal and financial information via e-mail. 2. The IRS never asks taxpayers for their PIN numbers, passwords or similar secret access information for their credit card, bank or other financial accounts. 3. If you receive an e-mail from someone claiming to be the IRS or directing you to an IRS site, •Do not reply to the message. •Do not open any attachments. Attachments may contain malicious code that will infect your computer. •...