Show - ' 1" RZP! 0 -- - ?Ml --- f i I r1 g:1 I :k it 4 t Ta)(e ha 'I Li NTERNAL REVENUE SERVIL I ! t 1 r:-- A Take 10 minutes to read this page — Cp1 4 e of Speaking v I - r(411 you may save hundreds ' of dollars in the next two weeks 1 f ) n (j I tm i I ' 1 BY FRANCES SPATZ LEIGHTON A ' cAtrh lay this game of 20 questions with the Internal Revenue experts Some of the answers may keep of trouble some may save you out you money Some look deceptively simple but don't be deceived Even the IRS experts had to go to the books for the answers to some of them I 4 My p mother-in-la- who lives w with me receives Social Security Can I count her as a dependent? L Is there something new this year about figuring gasoline taxes? 6 I am divorced My husband pays some child support but I still have a lot of expenses for my children who live with me Can I claim the children as my dependents? 7 Is a diary honored as a way of substantiating travel and entertainment expenditures? L If! take vitamins and minerals is the cost deductible? S My doctor prescribed 2 ounces of whiskey twice a day at mealtime for my heart condition Is that deductible? 10 My doctor says a trip South is it will help my skin condition deductible? 11 Does a wife's Social Security number have to be included with her husband's on their joint return? 12 I didn't earn anything last year So do I have to sign the joint return with my husband this year? If you get to right you're an average taxpayer If you get 15 right you're bright If you get 20 right apply at IRS — they need you But if your score is 5 or less let someone else make out your income tax! QUESTIONS 0 L I have until April 15 to file my tax return Isn't that true? 2 I am a retired nurse taking an occasional job in the neighborhood and I only made boo My friend tells me that since I am over 65 and earned less than SI200 I don't have to file a return Right or wrong? S Social Security benefits are taxable True or false? "Shall we check it oversight by oversight?" 0 13 I paid an expensive expert to make out my income tax and he still made a mistake on my return Isn't he responsible and doesn't he have to pay the difference and the penalty? U Is it true that for the first time in history all tax returns will be checked by computer machines this year? 15- - If my return checks out all with these new computer maright chines can I still be audited? 16 I am just a small investor with only a couple hundred dollars a year dividends If I don't report them will those computers bother to catch me when they have big fish to go after? son who is in 17 My e college got himself a job and earned $1000 Now I can't claim him as a dependent because he made more than S600 Isn't that correct? 111 My friend is mad He filed late and had to pay interest He says if it were the other way around and the government owed him a tax refund Internal Revenue would take all the time it wanted and not pay him interest True or false? 19 I'm having income tax trouble and I disagree with the agent's findings Can I do anything about it? 20 I've been called in for an examination of my last year's return Must I go alone? part-tim- 1 I ::iANSWERS L False You have until April 17 this because the 15111 falls on a Saturday year Z Wrong You are and netted S400 or more so you must file a return Two other exceptions to the rule are (1) if there is uncollected Social Security on tips and (2) if you had some money withheld by an employer and are due a refund L False They are not taxable and do not have to be reported on the tax return ' 4 Yes probably But if she gets more from Social Security than she gets from you in money and fair value of food and lodging you lose and cannot count her as a dependent L Yea For the first tune a table included in your toto instructions tells what to deduct for the number of miles you drove in a ''particular state For example if you drove so000 miles in California deduct L Not necessarily The parent who provides more than half the support claims the deduction But determining this has caused ao much controversy Congress has considered a bill to give the deduction to the parent who has custody No action yet - Si 12 013 A I 11 i i IA i f) :) lole ji N kt: 1 1 0 z1 ilks SHELDON S COHEN lapi for new COMPUiell of IRS holds which will scan all '66 returns Conunissiona 7 Yes Any detailed record made soon after the expenditure carries weight But the best proof is cancelled checks or receipts S Only if a doctor prescribes them And you cannot act as your own doctor S Yes Special diets prescribed in addition to your regular diet are deductible But a diet that replaces normal food is ma deductible the law figures you have to eat something 10 Yes if it is to treat a specific ailment and not just to pep you up However only the transportation cost is deductible The law figures you have to eat or sleep anyway IL No — unless her own income is $ to or more from wages dividends or interest IL Yes Joint returns still need two signatures or your return will not be valid 13 No You signed it and are still responsible for the accuracy of everything on it I& True Lastyear half were computer checked This year the automatic data processing system covers the whok population -IL Yes A certain percentage of returns will still be selected at random for auditing So any taxpayer is subject to being questioned - at any time even those who pas the computer verification tests Yes the machines are not fussy Corporations have to report all dividend payments of S io or more made by them and these are fed into the computer to be compared with your return at the National Computer Center in Martinsburg W Va 17 Wrong Ordinarily you can't count someone who earns S600 as a dependent but if your child is under io or is a stue dent the $60o rule does not apply IL False IRS must pay your refund within 45 days after the due date If they take 5o days they must give you 6 per cent interest all the way back to the due date and not just for the 5 days 13 Yes Request a district conference Last year 4o000 such conferences were re-quested and the total tax liability for these people was reduced by S194000000 20e No You can bring anyone you think will help you to testify- - In fact you don't have to go at all if you send a lawyer accountant or other qualified representative ( THE END) it full-tim- ------ - |