Don't Look for Help From the IRS on Your 2013 Tax Return
An underfunded agency means little assistance for 2013 filers.
Nina Olson is the national taxpayer advocate for the Internal Revenue Service(pictured at left). Here are excerpts from Kiplinger's recent interview with Olson.
Your recent report to Congress said the IRS has been “chronically underfunded” for years. How will this affect taxpayers filing their 2013 returns?
During tax season, the IRS will answer only basic questions, and I’m not even clear on what basic means. After April 15, if you file an extension and have a question, there will be nobody at the walk-in sites or on the phones to give you an answer. You’ll have to go online or pay someone to answer your question. Not only do you have to pay taxes to the government, you also have to pay somebody for the privilege of paying your taxes.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Isn’t the IRS Web site, www.irs.gov, filling the gap?
The general advice on the site is a good starting point, but there’s nowhere to submit a question. We have an obligation to help taxpayers comply with the law. That includes answering more-specific questions. Finding out the status of a refund is appropriate online, but at some point the taxpayer may need to talk to a human being. Phone calls have increased significantly since 2004, even as we’re offering more services online. The law is complicated. Taxpayers’ lives are complicated.
How does the lack of funding affect taxpayers’ willingness to comply with the law?
If the IRS walks away from taxpayer service and assistance, what will happen more frequently is that the only contact taxpayers have with the IRS is through its enforcement division. That will affect taxpayers’ attitude toward the tax system and make it more adversarial. And that could lead to noncompliance.
In 2013, a U.S. District Court struck down IRS regulations to register and test tax preparers. How can taxpayers protect themselves from unscrupulous operators?
Be very careful about relying on ads that talk about how large a refund a preparer will be able to get for you. Ask preparers what training they’ve had. See how long they’ve been in their current location. Are they going to be there after April 15? If you decide to go with a preparer, get a copy of the completed return and make sure that the preparer’s name, address and his or her PTIN (preparer tax identification number) are on your copy. Preparers are required by law to give you that information. We’ve seen a lot of cases in which preparers have altered the return before it was filed with the IRS and pocketed the difference in the refund, leaving the taxpayer stuck with the liability once the fraud is discovered. One of the best ways to prove that you did not collude in altering a return is to provide your copy of the return.
-
9 Types of Insurance You Don't NeedFinancial Planning If you're paying for these types of insurance, you may be wasting your money. Here's what you need to know.
-
Are You Putting Yourself Last? The Cost Could Be Your RetirementIf you're part of the sandwich generation, it's critical that you don't let the needs of your aging parents come at the expense of your future.
-
Time to Prepare for Disasters Like They Could Happen to YouYou can no longer have the mindset that "that won't happen here." Because it absolutely could. As we head into 2026, consider making a disaster plan.
-
Kiplinger's Tax Map for Middle-Class Families: About Our Methodologystate tax The research behind our judgments.
-
Retirees, Make These Midyear Moves to Cut Next Year's Tax BillTax Breaks Save money next April by making these six hot-as-July tax moves.
-
Estimated Payments or Withholding in Retirement? Here's Some GuidanceBudgeting You generally must pay taxes throughout the year on your retirement income. But it isn't always clear whether withholding or estimated tax payments is the best way to pay.
-
How to Cut Your 2021 Tax BillTax Breaks Our guidance could help you claim a higher refund or reduce the amount you owe.
-
Why This Tax Filing Season Could Be UglyCoronavirus and Your Money National Taxpayer Advocate Erin M. Collins warns the agency will continue to struggle with tight budgets and backlogs. Her advice: File electronically!
-
Con Artists Target People Who Owe The IRS MoneyScams In one scheme, thieves will offer to "help" you pay back taxes, only to leave you on the hook for expensive fees in addition to the taxes.
-
Cash-Rich States Lower TaxesTax Breaks The economic turnaround sparked a wave of cuts in state tax rates. But some say the efforts could backfire.
-
The Financial Effects of Losing a SpouseFinancial Planning Even amid grief, it's important to reassess your finances. With the loss of your spouse's income, you may find yourself in a lower tax bracket or that you qualify for new deductions or credits.
