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What Are Taxpayer Advocates and When Should You Call Them?

Taxpayer advocates can help you resolve problems with the IRS, especially if they are causing you financial hardship

If you’ve ever had a tax problem, someone may have suggested that you contact a taxpayer advocate. But who are these taxpayer advocates and what exactly do they do?

The Taxpayer Advocate Service (TAS) is an independent organization inside the IRS. They serve as your voice inside the sometimes opaque IRS. They’re free, so you have nothing to lose in contacting them. Oftentimes with tax issues, the worst thing you can do is nothing at all.

When you should contact the TAS?

When should you contact the Taxpayer Advocate Service?

  • If you are experiencing economic hardship, for example if you are unable to afford basic necessities like housing, transportation, and food.
  • If you are unable to resolve a problem with the IRS by speaking to a normal representative (1-800-829-1040).
  • If you believe there’s a problem with an IRS system or procedure that needs to be corrected or improved. Continue reading “What Are Taxpayer Advocates and When Should You Call Them?”
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What Is Alternative Minimum Tax?

If you make more than $37,225 you could be hit by the Alternative Minimum Tax

The Alternative Minimum Tax (AMT) is a parallel system of income tax that makes sure wealthy taxpayers pay at least a minimum amount of tax, primarily by limiting the benefits available from deductions.

You could get hit by the AMT if an adjusted calculation of your taxable income lies beyond a certain threshold, called an exemption. If your income is above the exemption, you must pay either the normal income tax or the Alternative Minimum Tax, whichever is greater.

For 2011 taxes, the AMT exemption levels are $48,450 for single filers and heads of household, $74,450 for married couples filing jointly, and $37,225 for married taxpayers filing separately.

For the early birds already looking ahead to next year, the AMT exemption levels for 2012 taxes are $33,750, $45,000, and $22,500 respectively. Continue reading “What Is Alternative Minimum Tax?”

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Volunteer to Give Federal Income Tax Return Help to Disadvantaged Taxpayers

You can help low-income people in your local community get their full refund when they file taxes for 2011. Find out how!

As the season to file 2011 taxes inches ever closer, most people are preoccupied with getting their own financial house in order. But even in the tax world, Thanksgiving can be a great time of year to give back.

For instance, did you know that although it is often portrayed as the big bad wolf of personal finance the IRS in fact gets millions of disadvantaged people free income tax help every year through its Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs?

IRS volunteers assist low-to-moderate income taxpayers, senior citizens, people with disabilities, and non-English speakers who all make less than $50,000 and often suffer significant financial hardship.

As the vast majority of these disadvantaged citizens are due a refund, helping them file can get them money that could have a significant positive impact on their lives. In short, it’s a worthy cause. Continue reading “Volunteer to Give Federal Income Tax Return Help to Disadvantaged Taxpayers”