| Use of Faxes for Taxpayer Submissions |
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| The world of communications has drastically changed since the first tax laws were enacted by Congress. Until recently, contacts between the Internal Revenue Service and taxpayers have been by mail, phone, or personal interviews, or a combination of them all. But now almost all businesses use the fax machine as an integral part of their operations, and the IRS, based on requests from taxpayers and practitioners, has approved the use of faxes in certain circumstances for issues related to income, employment, excise, estate, gift, and generation skipping tax, as well as tax exempt and employee plan determinations. More... |
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| Slavery Reparation Tax Refund Scam |
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| When the IRS receives a reparations claim related to slavery, it notifies the taxpayer that the claim has no basis in law. It offers the taxpayer the opportunity to rescind the frivolous claim or to file a corrected tax return without the imposition of a penalty. However, if the taxpayer insists on pursuing the reparations claim, he or she could face a penalty of up to $500. More... |
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| Lottery and Gambling |
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| All winnings, including cash and the fair market value of noncash prizes such as cars, houses, and vacations, must be included in a taxpayer's income. Gambling winnings are fully taxable. The taxpayer is permitted to deduct gambling losses for the year only if he choses to itemize deductions, and then only to the extent of winnings. More... |
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| Mortgage Interest Credit |
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| Low-income taxpayers who purchase a residence may be entitled to a federal income tax credit for part of their home mortgage interest paid each year. The credit is a direct dollar for dollar reduction of taxes owed. Generally, a qualifying principal residence may not cost more than 90 percent of the average area purchase price, but it can go as high as 110 percent in some targeted areas. More... |
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| Treasury Offset Program and Injured Spouse Relief |
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| If you owe any past-due child support, Federal agency non-tax debts, or state income tax obligations, you might not be getting the federal income tax refund that you expected. Congress has authorized the Department of Treasury's Financial Management Service (FMS), which issues the refund checks, to set up the Treasury Offset Program, which can reduce your refund or any overpayment that you wanted to apply to next year's tax liability. More... |
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