IRS gives flood victims 30 extra days to file taxes

Victims of the recent flooding in Minnesota and North Dakota are getting an extra month to file their taxes, the Internal Revenue Service announced today.

"Because the flooding has occurred within close proximity to April 15––the nation’s tax day and the most significant tax filing deadline of the year––taxpayers and relief workers directly impacted by the flooding will have until midnight May 15 to file and make payments associated with their 2008 individual tax returns, otherwise due April 15, without incurring late filing or payment fees and interest," the IRS said.

The IRS wants you

The Internal Revenue Services is looking for a few good men and women.

The tax agency everyone loves to hate put out a public invitation this morning for "civic-minded volunteers" to join the Taxpayer Advocacy Panel, which "listens to taxpayers, identifies key issues and makes recommendations for improving IRS service."

“TAP members are your friends and neighbors, walking in the shoes of the average taxpayer. A better understanding of how to serve the taxpayer well is a key to sound tax administration,” IRS Commissioner Doug Shulman said in a statement.

The requirements:

To be a member of TAP you must be a U.S. citizen, current with your tax obligations, able to commit 300 to 500 hours during the year and pass an FBI criminal background check.  New TAP members will serve a three-year term starting in December 2009. Anyone chosen as an alternate would be considered to fill any vacancies that open during the next two years.

If you're interested, visit improveirs.gov for an application or call 1-888-912-1227. You've got until April 30.

Free tax filing for some, courtesy of the IRS

On Saturday, March 21, the Internal Revenue Service will provide free tax preparation for people making $42,000 or less.

More than 250 local IRS offices will be open from 9 a.m. till 2 p.m., and more than 1,000 "community partners" will offer the same services.

"Because of the economic downturn, many financially distressed taxpayers may be in need of free services. Our Super Saturday service will make it a little easier for people to get that help. Although our Taxpayer Assistance Centers are not normally open on Saturdays, we’re trying to go the extra mile in these difficult times," Doug Shulman, IRS Commissioner, said in a statement. "Our Super Saturday service will help people get their refunds quickly. Also, if you think you owe taxes and can’t pay, please come in and talk to us about it. There are steps we can take to help."

Here's what you'll need to bring:

• Valid driver’s license or photo identification (self & spouse, if applicable)
• Social Security cards for all persons listed on the return
• Dates of birth for all persons listed on the return
• All income statements: Forms W-2, 1099, Social Security, Unemployment, or other benefits statements, self-employment records and any documents showing taxes withheld
• Dependent child care information: payee’s name, address and Social Security Number or Taxpayer Identification Number
• Proof of account at financial institution for direct debit or deposit (i.e. canceled/voided check or bank statement)
• Prior year tax return (if available)
• Any other pertinent documents or papers

Anyone, regardless of income level, can visit a "Taxpayer Assistance Center" to get questions answered or arrange a payment schedule.

Visit IRS.gov to find a location near you.

The taxman cometh ... with statistics

As we all pull together our tax information for this year, the IRS has released facts and figures for last year's filings.

We handed over a total of $2,745,035,410,000 in Fiscal Year 2008, according to the Internal Revenue Service Data Book.

The IRS gave a little more than .5 percent of that--$428,838,202,000--back in refunds.

The government ended up with $2,316,197,206,000.

Spelled out, that's two trillion three hundred sixteen billion one hundred ninety-seven million two hundred six thousand dollars.

Where did all that money come from?

Almost 46 percent was from individual income taxes, according to the IRS numbers. Corporations chipped in another 13 percent, with excise taxes making up about 2 percent.

Estate and gift taxes were the smallest part of the pie at 1.2 percent.

The IRS says it processed more than 250 million returns, More than 101 million returns, including 58 percent of individual income tax returns, were filed electronically.

If you're intimidated by all those numbers (or by taxes in general), Consumer Reports has resources to help you file your taxes.

IRS still wants your tax money, but won't outsource collection duties

The Internal Revenue Service is ending it's contracts with private debt collection companies and will hire as many as 1,000 federal workers to collect delinquent taxes, the agency announced today.

"I believe this work is best done by IRS employees, and I believe we have strong support from the Administration and the Congress for increased IRS enforcement resources going forward," IRS Commissioner Doug Shulman said in a statement, citing a study that showed it was more cost-effective for the IRS to do its own collections work.

The agency head also said that IRS personnel could do the job better than outside contractors because they have "more flexibility handling cases."

"In these challenging economic times, I have asked all IRS employees to go the extra mile to help financially distressed taxpayers," Shulman said. "IRS employees have more options available to them to resolve difficult collection cases."

The IRS hired outside companies to assist in collecting delinquent taxes in 2006 after Congress passed voted to permit the practice in 2004. The current one-year contracts expire today, according to the IRS.

Some Republicans have fought to keep the private companies involved in IRS debt collection, arguing that it creates jobs.

"It's hard to believe that after worrying so much about keeping people employed, the administration has chosen this route," Sen. Chuck Grassley said in statement.

Some Democrats, the National Treasury Employees Union, and consumer groups have argued that federal workers can do the job for less money and will cut down on abusive collection tactics.

"This result, a long time coming in the face of growing opposition to the program, is not only a good decision by the IRS, it is the right decision," the union's president, Colleen Kelley, said in a statement. "It reaffirms what NTEU has said repeatedly—that given the tools and resources, no one can perform the work of the federal government better than federal employees. This is an important vote of confidence for IRS employees."

Some Republicans have fought to keep the private companies involved in IRS debt collection, arguing that it creates jobs.

"It's hard to believe that after worrying so much about keeping people employed, the administration has chosen this route," Sen. Chuck Grassley said in statement.

Some Democrats, the National Treasury Employees Union, and consumer groups have argued that federal workers can do the job for less money and will cut down on abusive collection tactics.

"This result, a long time coming in the face of growing opposition to the program, is not only a good decision by the IRS, it is the right decision," the union's president, Colleen Kelley, said in a statement. "It reaffirms what NTEU has said repeatedly—that given the tools and resources, no one can perform the work of the federal government better than federal employees. This is an important vote of confidence for IRS employees."