William Penn Life, 2001 (36. évfolyam, 1-12. szám)

2001-02-01 / 2. szám

WPA

Q% Most of my income • comes from my Social Security benefits. Are those benefits taxable? Do I need to file a tax return?

A# According to the Internal • Revenue Service (Tax Tip 2001 -8), whether your Social Security benefits are taxable depends on your total income and marital status. Form SSA-1099, which Social Security recipients receive by Jan. 31, shows your total benefits, but determining your taxable benefits requires some calculating.

Generally, if Social Security benefits were your only income, your benefits are not taxable and you probably do not need to file a federal income tax return. If you received Social Security benefits plus other income, the answer to how much, if any, is taxable can be found in the worksheet in the Form 1040 instruction book.

For a quick computation, add one-half of your Social Security benefits to all your other income, including tax-exempt interest. If this amount is greater than the base amount for your filing status, a part of your benefits will be taxable.

Money Links

For more free information about your rights as a taxpayer, the taxability of your Social Security benefits, or other income tax related topics, contact:

3 Internal Revenue Service 1-800-829-1040 mvw.irs.gov

Cljt' ®axpapcr

lltll of Eígljtő

DO YOU FEEL INTIMIDATED by the Internal Revenue Service?

Let's face it: the IRS is the world's largest, most powerful collection agency. It knows things about you that your neighbor, your best friend, and maybe your spouse, don't know.

Fail to play by their rules and you could find yourself in deep trouble.

But, believe it or not, you don't have to cower when confronted by the IRS. If you feel the IRS has treated you unfairly, the law may actually be on your side.

In July 1996, President Clinton signed into law Public Law 104-168, also known as the "Taxpayer Bill of Rights 2." This law provides increased protections for taxpayers rights in complying with the Internal Revenue Code and in dealing with the IRS.

Among the law's provisions are:

Protection of your rights. IRS employees are to explain and protect your rights as a taxpayer throughout your contact with them.

Privacy and Confidentiality. The IRS may not disclose to anyone the information you give it, except as authorized by law. You have the right to know why the IRS is asking for information, how it will use it and what happens if you do not provide requested information.

Professional and Courteous Service. If you believe that an IRS employee has not treated you in a professional, fair and courteous manner, you should tell that employee's supervisor. If the supervisor's response is not satisfactory, you should write to the IRS director for your area or the center where you file your return.

Representation. You may either represent yourself or, with proper written authorization, have someone else represent you in matters with the

IRS. Your representative must be a person allowed to practice before the IRS, such as an attorney, or certified public accountant. If you are in an interview with the IRS and ask to consult such a person, then the IRS must stop and reschedule the interview in most cases.

Payment of Only the Correct Amount of Tax. You are responsible for paying only the correct amount of tax due under the law—no more, no less. If you cannot pay all of your tax when it is due, you may be able to make monthly installment payments.

The Taxpayer Advocate. Tf yon have tried and failed to resolve a problem with the IRS, you can seek help from the Taxpayer Advocate Service. Your local taxpayer advocate can offer special help if you have a significant hardship as a result of a tax problem. For more information, call toll-free 1-877-777-4778 or write to the taxpayer advocate at the IRS office that last contacted you.

Appeals and judicial Review, if you disagree with the IRS about the amount of your tax liability or certain collection actions, you have the right to ask the Appeals Office to review your case. You may also ask a court to review your case.

Relief from Certain Penalties and Interest. The IRS will waive penalties when allowed by law if you can show you acted reasonably and in good faith or relied on incorrect advice from an IRS employee. The IRS will waive interest that is the result of certain errors or delays caused by an ERS employee.

4

Hilliaa Pm Lilt, February 2001