Tips from the IRS Taxpayer Advocate

Taxpayer Advocate Service (TAS) is an organization that is within, but is independent of the Internal Revenue Service. It is under the supervision and direction of the National Taxpayer Advocate [ERIN COLLINS] who is appointed by the Secretary of Treasury. So, I am an IRS employee, as are all of the members of my staff…. But we work Independently of the IRS….

The Taxpayer Advocate Service is here to ensure that every taxpayer is treated fairly and that you know and understand your rights. Our advocates can help if you have tax problems that you can't resolve on your own. Our Case Advocates assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should.

The service is free, confidential, and is available for businesses as well as individuals. Because we are part of the IRS, our Case Advocates know the tax system and how to navigate it. If you qualify, you will receive service from a knowledgeable Advocate who will work with you until we get a resolution.

You can contact TAS, through our website at www.irs.gov/advocate. You can also call us toll-free at 1-877-777-4778. That number is 877-777-4778.

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The top frustration for taxpayers over the past year is the IRS backlog in processing paper tax returns. The IRS has reduced staff and outdated equipment to process paper. Paper tax returns, correspondence, paper payments…. All have tremendous backlogs at these Processing Centers, or Campuses. So my first piece of advice is :::: File Electronically, if at all possible!!! The IRS still has a backlog of millions of tax returns from last year that have not yet been processed. So the timeframe for processing a paper tax return for this current year could be months, in my opinion.

In Tampa Bay, the Number one source of cases this past year has been what the IRS calls "Pre-Refund Wage Verification Hold'. That means that the IRS is comparing the income and withholding that you put on your tax return with the amounts that were reported through Social Security by your employers and other payers. So, make sure you fill out your tax return with actual W2s; don't estimate, don't use your last paystub. The numbers may be off. If the amounts don't match, the IRS will freeze your refund. This is a relatively new program at the IRS, and after they freeze your account, they will then ask you for proof of income. Not just a copy of your W2. The IRS has found fraudulent activity in photoshopping W-2s. Instead, they will ask for paystubs or a letter from your employer. Once you have confirmed that the income is correct, they will release the refund. If you made an error, you will have to file an Amended Tax Return to correct the error.

I have seen a dramatic spike in tax returns not being processed due to "Error Resolution". Digging deeper, it appears that most of the errors are due to the Recovery Rebate Credit worksheet, where you account for the Stimulus payments that you already received compared to what you are entitled to and the amount of Advanced Child Tax Credit payments that you were sent. Errors on those worksheets cause the tax return not to be processed. It takes substantially longer than an error free return takes for processing.

The deadline to file this year is April 15^th… You can find some terrific resources for free filing, or trained, certified volunteer income tax preparation at IRS.GOV. Currently, paid tax return preparers are largely unregulated… Almost anyone can prepare tax returns for money. Be careful when you choose a paid tax return preparer…I have seen many instances of incompetent or unscrupulous unregulated return preparers. If there are errors or overstatements on the return, the IRS is going to be coming to YOU, not the preparer. If their fee is based on a percentage of your refund…that would be a red flag to me. Check the IRS Directory of Preparers. Check the preparer's history or verify enrolled agent status page on IRS.gov. Ask about their Fees. Review your return before signing. Ensure the preparer signs and includes their Preparer ID number.

You can find out more about your tax return processing, helpful information on stimulus payments, the child tax credit, or any tax topic, by going to IRS.GOV.