PhillyTalk: Ask the Writers and Experts

Below is information on obtaining copies of tax records. You may wish to call 1.800.829.1040 to see if the records you are trying to obtain are in fact retreivalble

Topic 156 - Copy of Your Tax Return – How to Get One
If you need an actual copy of your return, you should complete and mail Form 4506 (PDF), Request for Copy of Tax Return along with a check or money order for $ 39.00 per tax year made payable to the "United States Treasury". Allow 60 calendar days to receive your copies.

Most needs for tax return information can be met with a tax return transcript or a tax account transcript, rather than an actual copy of the return. The tax return transcript shows information from the return as it was originally filed. A tax account transcript shows any later adjustments either the taxpayer or the IRS made after the tax return was filed. Transcripts are provided free of charge. These transcripts may be acceptable substitutes for an actual copy of the return by the Bureau of Citizenship and Immigration Services and lending agencies for student loans and mortgages. Check with your agency or lender to be sure.

You can obtain a transcript by calling (800)–829–1040 or by completing and mailing Form 4506-T (PDF), Request for Transcript of Tax Return, to the address listed in the instructions to request all types of transcript verification of non-filing, and wage/income information.

Transcripts will be mailed directly to you, and should be received within two weeks after the IRS gets your request. Transcripts can be mailed to a third party if you specify this on Form 4506–T. However, you must sign and date the form giving your consent for the disclosure.

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Understadning Your IRS Notice - We realize that receiving a notice from the IRS can be unnerving, but if you follow these simple steps, the process to resolving the discrepancy should be straight forward (http://www.irs.gov/individuals/article/0,,id=96199,00.html)

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This response does not represent a legal opinion from the IRS. To address your specific circumstances consult with a tax professional.

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 For more information visit us at IRS.gov.

The person who receives a gift or estate generally will not have to pay any gift tax or estate tax. In addition, that person will not have to pay income tax on the value of the gift or inheritance received. NOTE: There are some technical applications for "Income in Respect of Decedent" under §691 that will have to be considered for income earned but not otherwise taxed prior to the date of death. Please check out additional information on the IRS.gov Web site. I am including links to information I think you will find helpful. You may also wish to also seek the advice of a tax professional regarding your own estate planning.

Estate and Gift Tax – Introduction

http://www.irs.gov/businesses/small/article/0,,id=164870,00.html

Estate and Gift Taxes

http://www.irs.gov/businesses/small/article/0,,id=98968,00.html

Publication 950 (9/2006), Introduction to Estate and Gift Taxes 

http://www.irs.gov/pub/irs-pdf/p950.pdf

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This response does not represent a legal opinion from the IRS. To address your specific circumstances consult with a tax professional.

Initiating refund check traces: You can initiate an online refund trace on refunds issued via paper check 28 days after the IRS mailing date provided by “Where’s My Refund?” You can actually complete Form 3911, Taxpayer Statement Regarding Refund, online. However, if you are married and filed jointly, you must print and mail or fax the form since it requires the signatures of both taxpayers.

You will receive claims packages from the Treasury Department’s Financial Management Services, which you must complete and return to continue the refund trace.

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Need a Copy of Your Tax Return Information?

Requesting transcripts (individuals):

You have two easy and convenient options for getting copies of your federal tax return information -- tax return transcripts and tax account transcripts -- by phone or by mail.

Request transcripts by calling 1-800-829-1040, or order by mail using IRS Form 4506T (Request for Transcript of Tax Return). We do not charge a fee for transcripts. Allow two weeks for delivery.

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This response does not represent a legal opinion from the IRS. To address your specific circumstances consult with a tax professional.

Most taxpayers file tax returns and pay what they owe on time. If a taxpayer does not pay, the Internal Revenue Service sends the taxpayer a bill. This begins the collection process. Along with the bill, which is called a notice, the IRS automatically sends Publication 1 (http://www.irs.gov/publications/p1/index.html), Your Rights as a Taxpayer, and Publication 594 (http://www.irs.gov/pub/irs-pdf/p594.pdf), Understanding the Collection Process. These publications explain the various options and rights taxpayers have in dealing with the IRS.

You may wish to pursue an "Offer in Compromise (OIC)"... An OIC is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer's tax liabilities for less than the full amount owed. If the liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC. For information concerning installment agreements, refer to Topic 202 (http://www.irs.gov/taxtopics/tc202.html).

In most cases, the IRS will not accept an offer unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (the RCP). The RCP is how the IRS measures the taxpayer's ability to pay. The RCP includes the value that can be realized from the taxpayer's assets, such as real property, automobiles, bank accounts, and other property. In addition to property, the RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.

The IRS may accept an OIC based on three grounds. First, acceptance is permitted if there is doubt as to liability. This ground is only met when genuine doubt exists that the IRS has correctly determined the amount owed. Second, acceptance is permitted if there is doubt that the amount owed is collectible. This means that doubt exists that the taxpayer could ever pay the full amount owed. Third, acceptance is permitted based on effective tax administration. An offer may be accepted based on effective tax administration when there is no doubt that the liabilities have been correctly determined and no doubt that the full amount owed can be collected, but because of exceptional circumstances, requiring payment in full would either create an economic hardship or would be unfair and inequitable.

WARNING ON E-MAIL SCAMS - Members of the public are receiving phony e-mails falsely claiming to come from the IRS. Take steps to protect yourself (http://www.irs.gov/newsroom/article/0,,id=170894,00.html).

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This response does not represent a legal opinion from the IRS. To address your specific circumstances consult with a tax professional.

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 For more information visit us at IRS.gov.

What is Taxable and Nontaxable Income?

Generally, an amount included in your income is taxable unless it is specifically exempted by law. Income that is taxable must be reported on your return and is subject to tax. Income that is nontaxable may have to be shown on your tax return but is not taxable. A list is available in Publication 525, Taxable and Nontaxable Income… http://www.irs.gov/publications/p525/index.html.

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Frivolous Tax Arguments

Why pay taxes? "The Truth About Frivolous Tax Arguments" responds to some of the more common frivolous "legal" arguments made by individuals and groups who oppose compliance with the federal tax laws. The Truth About Frivolous Tax Arguments… http://www.irs.gov/pub/irs-utl/friv_tax.pdf.

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This response does not represent a legal opinion from the IRS. To address your specific circumstances consult with a tax professional.

For more information visit us at IRS.gov.

Generally, interest is charged on any unpaid tax from the due date of the return until the date of payment. The interest rate is determined every three months and is the federal short–term rate plus 3 percent. Interest is compounded daily. If you file on time but don't pay all amounts due on time, you'll generally have to pay a late payment penalty of one–half of one percent of the tax owed for each month, or part of a month, that the tax remains unpaid from the due date, until the tax is paid in full or the 25% maximum penalty is applied.

The penalties for filing and paying late may be abated if you have reasonable cause. If you're billed for either penalty and feel you have reasonable cause, send your explanation along with the bill to your service center, or call the IRS at 1–800–829–1040 for assistance. Generally, interest charges may not be abated; they continue to accrue until all assessed tax, penalties, and interest are paid in full. Generally, any reasonable cause exception to the penalty for failure to pay tax cannot be determined until the tax is first paid in full.

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IRS Witholding Calculator http://www.irs.gov/individuals/article/0,,id=96196,00.html
This easy-to-use calculator can help you figure your Federal income tax withholding so your employer can withhold the correct amount from your pay.

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This response does not represent a legal opinion from the IRS. To address your specific circumstances consult with a tax professional.

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 For more information visit us at IRS.gov.

Extension of Time to File Your Tax Return

You may be able to get an extension of time to file your return. Special rules apply for  some taxpayers. Automatic Extension - If you cannot file your 2006 return by the due date, you may be able to get an automatic 6-month extension of time to file. You cannot apply for an additional automatic 6-month extension.

Please be aware that an extension of time to file your return does not grant you any extension of time to pay your tax liability.

Extensions for Individuals

If you are not able to file your federal individual income tax return by the due date, you may be able to get an automatic 6-month extension of time to file. To do so, you must file Form 4868, Application for Automatic Extension of Time To File U.S. Income Tax Return (51K) Adobe PDF, by the due date for filing your calendar year return (usually April 15) or fiscal year return. This form is also available en español.

Special rules may apply if you are:

Living outside the

Out of the country when your 6-month extension expires, or

Serving in a combat zone or a qualified hazardous duty area.

Extensions for Corporations, Partnerships, REMICs, and Certain Trusts

Form 7004, Application for Automatic 6-Month Extension of Time To File Certain Business Income Tax, Information, and Other Returns (66K) Adobe PDF

Form 1138, Extension of Time for Payment of Taxes by a Corporation Expecting a Net Operating Loss Carryback (27K) Adobe PDF

Other Extension Forms

Form 2350 Application for Extension of Time to File Individual Income Tax Return (For Citizens and Resident Aliens Abroad Who Expect To Qualify for Special Tax Treatment) (42K) Adobe PDF

Form 4768 Application for Extension of Time to File a Return and/or Pay Estate (and Generation-Skipping Transfer) Taxes (32K) Adobe PDF

Form 5558 Application for Extension of Time to File Certain Employee Plan Returns (32K) Adobe PDF

Form 8809 Application for Extension of Time to File Information Returns (32K) Adobe PDF

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Small Business and Self-Employed One-Stop Resource
This section offers a broad range of resources across federal and state agencies, as well as industry/profession specific information for self-employed entrepreneurs, employers and businesses.

http://www.irs.gov/businesses/small/index.html

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This response does not represent a legal opinion from the IRS. To address your specific circumstances consult with a tax professional.

Please check out publications 501 and 929 on the IRS.gov Web site. This exceprt is from Publication 501...

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This response does not represent a legal opinion from the IRS. To address your specific circumstances consult with a tax professional.

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 For more information visit us at IRS.gov.

I would recommend you make your request through the human resources department of the companies your husband worked for, You may also wish to review past income tax returns as well as touching base with Social Security.

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This response does not represent a legal opinion from the IRS. To address your specific circumstances consult with a tax professional.

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IRS Warns Taxpayers of New E-mail Scams

Updated June 19, 2007 — In another recent scam, consumers have received a "Tax Avoidance Investigation" e-mail claiming to come from the IRS' "Fraud Department" in which the recipient is asked to complete an "investigation form," for which there is a link contained in the e-mail, because of possible fraud that the recipient committed.  It is believed that clicking on the link may activate a Trojan Horse.

For more information visit us at IRS.gov.

I don't know if you are looking to actually set up some form of college scholarship fund or looking for some way to simply save for college for those younger members of your family. This is a very wide ranging answer. You can establish a private foundation, go through a community foundation or other public charity, or even sponsor it through a club or trade association. There are also states that have accounts called 529 accounts. It may be also possible to set up some form of trust to accomplish this as well. All of these options come with different tax consequences so you may wish to consult with a tax or estate planner that will best meet your needs. You may also wish to check out the following reference at IRS.gov to begin your search.

References:

Publication 970, Tax Benefits for Education

Tax Topic 605, Education Credits

Form 8863 (PDF), Education Credits (Hope and Lifetime Learning Credits)

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This response does not represent a legal opinion from the IRS. To address your specific circumstances consult with a tax professional.

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