IRS FAQs
FREE Electronic Filing with Your Paid Federal Income Tax Return!
This page contains a listing of frequently asked questions that have to do with the Internal Revenue Service. This site only provides answers on Internal Revenue Service questions. If you have a question on state taxing authorities, you will need to contact your state taxing authority directly or a local tax professional. Click on the area of interest below and you will be taken to the answer to your question. If you do not find your question here you may want to check our advisory forum.
BUT PLEASE REMEMBER:
General Financial Services provides the information on these pages as a service to its clients and the public. GFS makes no warranties, express or implied, as to the accuracy of information presented on these pages. While the information on these pages is updated regularly, it may not reflect the most current position on a specific issue and should not be relied on for that purpose. As always, our office, official sources and publications should be consulted for the most current rules and regulations. Thank you for using the services of GFS
Where can I get tax help, forms and publications from the Internal Revenue Service?
How can I get tax forms by fax from the Internal Revenue Service?
How do I get an extension?
What will happen if I file late?
What happens if I cannot pay what I owe?
What do I do if I make a mistake on my tax return?
Why does a tax return usually get audited?
What should I do if I am audited?
What do I do? The Internal Revenue Service is after me for not filing?
How do Offers in Compromise work?
Where can I get tax help, forms and publications from the Internal Revenue Service?
The Internal Revenue Service provides free telephone assistance and other
services.
Taxpayer Information (800) 829-1040
For general information
If you received a notice and need help understanding what it means.
Taxpayer Forms & Publications (800) 829-3676 [(800) TAX-FORM]
To order IRS publications and forms by mail. Takes roughly 10 business
days for current year forms, longer for past years' forms.
TeleTax / Automated Refund Information (800) 829-4477
Available 24 hrs a day via a touchtone phone
TeleTax provides a variety of pre-recorded messages explaining
various tax rules and topics. Check your tax return booklet for
a listing, or follow the instructions when calling.
Automated Refund Information provides recorded information concerning
the status of your refund, starting with the 30th day after you file
your return. Have your copy of your return in front of you when you
call, and key in the information requested. This is the FIRST
step to take if your refund seems to be delayed.
FEDWORLD - Information, forms and publications online
BBS (not a toll-free call) (703)-321-8020
Website http://www.ustreas.gov/
(Look for the link off the TaxLogic main menu!)
Note: Many local IRS offices also provide walk-in service, have most forms
and publications in stock (or will place an order for you), and can provide
information on programs such as Volunteer Income Tax Assistance (VITA).
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How can I get tax forms by fax from the Internal Revenue Service?
In order to make it easier to obtain the forms you need to do your return, the Internal Revenue Service has made many forms now available 24hrs a day by FAX. There is no charge except a long distance call.
To use the system, call (703) 487-4160 from the phone connected to the fax machine, and follow the instructions. Following are some of the more common forms available, and their code numbers for the FORMS BY FAX, to save you time when you call.
Note that forms DO NOT INCLUDE INSTRUCTIONS unless indicated. You NEED instructions in order to fill out most of these forms! If not available here, see information on downloading forms or ordering them by mail.
Use Code
# for
11320 Form 1040
11330 Sch A and B
11334 Sch C
14374 Sch C-EZ
11338 Sch D
11344 Sch E
13339 Sch EIC
11346 Sch F
12187 Sch H
21451 Instructions for Sch H
11359 Sch R
11358 Sch SE
11327 Form 1040A
12075 Sch 1 (for 1040A)
10749 Sch 2 (for 1040A)
12064 Sch 3 (for 1040A)
12059 Instructions for Sch 3 (1040A)
11340 Form 1040-ES
11329 Form 1040-EZ
11360 Form 1040X
11362 Instructions for Form 1040X
11440 Form 1116
11441 Instructions for Form 1116
11566 Form 1310
11700 Form 2106
64188 Instructions for Form 2106
20604 Form 2106-EZ
11712 Form 2120
11744 Form 2210
63610 Instructions for Form 2210
11862 Form 2441
10842 Instructions for Form 2441
12490 Form 3903
12626 Form 4137
41721 Form 4506
12906 Form 4562
12907 Instructions for Form 4562
13086 Form 4797
13087 Instructions for Form 4797
13141 Form 4868 (April 15 - automatic 4 month extension for individual)
13177 Form 4952
13329 Form 5329
13330 Instructions for Form 5329
13600 Form 6251
64277 Instructions for Form 6251
13601 Form 6252
64262 Instructions for Form 6252
13715 Form 6781
62299 Form 8283
62730 Instructions for Form 8283
13910 Form 8332
63704 Form 8582
64294 Instructions for Form 8582
63987 Form 8586
63966 Form 8606
64113 Form 8615
10002 Form 8801
10750 Form 8814
10822 Form 8815
12081 Form 8822
12311 Form 8824
13232 Form 8829
15683 Instructions for Form 8829
14842 Form 9465 (Application for Installment Agreement
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How do I get an extension?
An individual may file for an automatic extension through August 15, simply by completing, signing and mailing Form 4868 no later than the original due date of the return (usually April 15).
If additional time is needed, an additional extension can be requested using Form 2688, which must be filed in advance of the expiration of the first extension. If approved by the IRS, the second extension is valid through October 15th.
Note that an extension to file is *not* an extension to *pay*. Whatever tax is due as of the original due date must be estimated and shown on the extension, in order for it to be valid. In order to avoid late payment interest and possible penalties, the tax due should accompany the extension.
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What will happen if I file late?
If you file your individual return late, you can be subject to two penalties, plus interest, calculated on the balance of tax owed with the return.
The LATE FILING penalty is 5% of the tax, per month (or part of a month), to a maximum of 25%. If the return is filed more than sixty days late, the late filing penalty is the higher of $100 (but not more than the amount of the tax) or the 5% per month penalty mentioned already.
The LATE PAYMENT penalty will apply to required payments made after the due date (including extensions), and is computed as a half percent per month (.5%) for each month (or part of a month) due. However, the combined late payment and late filing penalties generally cannot exceed 5% per month to a maximum of 25%.
Interest is compounded daily, on the amount paid after the due date (including extensions). The rate varies each quarter, and is announced by the Internal Revenue Service.
In some case, there may be additional penalties assessed for failure to prepay estimated taxes during the tax year, for certain transactions, and for negligence.
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What happens if I cannot pay what I owe?
If you cannot pay the balance due with the return, FILE IT ON TIME anyway, paying whatever you can with the return. This prevents the late filing penalty, which is ten times that of the late payment penalty. You will be billed for the tax and related interest and penalties.
If you will be unable to pay the remaining balance due within a reasonable period of time after filing, you may want to apply for an Installment Agreement, using Form 9465. This method requires that you indicate how much you can pay per month, and what date of the month the payments will be made. There is a user fee of $43 for such an agreement, which will be billed by the IRS with your first installment due. [NOTE: If you are on an installment agreement, be sure that your CURRENT year taxes are being paid on time. If you end up owing money you cannot pay for the current year, your previous year installment agreement may be voided.]
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What do I do if I make a mistake on my tax return?
If you make an error in preparing your individual return, you can file an Amended Return on Form 1040X. You will also need to obtain copies of whatever forms and schedules for the year that needs to be refigured.
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Why does a tax return usually get audited?
If you report wages, other income items or mortgage interest that differs from the amount reported to the IRS, you may receive a "correction notice" that simply asks you to explain the discrepancy. These computer-generated notices do not constitute an audit.
Returns are actually audited for a variety of reasons. In most cases, your return may contain one or more items that make it stand out from the statistical information that the Internal Revenue Service has gathered about the "average" taxpayer in your income bracket. The audit will generally cover only those items that appear to be questionable on your return.
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What should I do if I am audited?
If you are notified that you will be audited, first resist the impulse to panic. An audit simply means that some items on your return seem questionable, and the IRS wants you to clarify them. As long as you prepared your return correctly from the documentation you have, and retained that documentation as proof of your income and deductions, you should not have a problem.
The majority of IRS audits are conducted through the mail. For example, they'll ask you to prove a deduction, and you send them a photocopy of that proof. (Note: NEVER send your original documentation to the IRS or let them keep it in an office audit. Provide copies ONLY.) Other audits might be conducted at an IRS office, or at your home or business.
In either case, you should only need to provide information about the specific items that the audit notice lists as in question. Do not "volunteer" any additional information that is not being questioned. If your return was prepared professionally, it would be wise to consult with the preparer for additional guidance.
If you have an in-person audit, you have the right to have an advisor accompany you or, in the case of a CPA, enrolled agent or attorney, appear in your place as your representative under a Power of Attorney.
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What do I do? The Internal Revenue Service is after me for not filing?
The IRS considers non-filing a very serious matter. However, if you voluntarily file your delinquent returns, without being asked about them, you will find that the IRS can be helpful in providing forms, copies of W-2's and other forms you may have lost, and providing telephone or in-office assistance. And, if there were reasonable explanations for your not filing, any resulting penalties may be able to be waived.
If the IRS comes after you for not filing, you need to have those returns prepared and filed as soon as possible. It may be wise to seek the services of a local tax professional, who will have access to the forms needed, and will be able to intercede with the IRS in subsequent discussions about the returns.
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How do Offers in Compromise work?
Contrary to popular belief, the IRS does not have an "amnesty" program for those who owe a lot of back taxes they cannot pay. However, if you are current on filing your returns, they sometimes may be willing to settle for less than what you owe, if you meet the criteria for the Offer In Compromise (OIC) program.
An OIC is only feasible if you have access to funds that the IRS cannot otherwise touch, AND you would be unlikely to pay the taxes you owe within five years. In general, the sum of the resale value of any assets they can seize from you, plus the present value of the payments they could expect to receive from you for the next 5 years, would be the MINIMUM offer amount that they would likely consider. If you have an offer approved, you are also making a contract with the IRS that you will not be delinquent in taxes for any reason for the next five years; if you are, the offer is rescinded.
If you feel that you may qualify for an Offer In Compromise, your best alternative is to seek out a tax professional who deals with a lot of OICs, and let him or her advise you. If you cannot afford to use a tax professional for guidance, call your local IRS office and ask to meet with someone to discuss the possibility of an Offer In Compromise. You will need to provide the person helping you with copies of your most recent tax bills, plus complete financial information about your assets, liabilities and current income/expenses.
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