Category Archives: IRS

Tell the IRS exactly what you think

Ever dreamed of telling the taxman what he can do with itemized deductions? Here’s your chance.

The Internal Revenue Service is looking for volunteers from Tennessee – and several other states – willing to serve on a federal advisory committee that will recommend ways to improve IRS service.

Volunteers must be willing to commit up to 500 hours during the year and pass an FBI criminal background check. And, committee members must be current on their federal taxes. The deadline to apply is April 27.

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The IRS has no sense of humor

Nobody likes paying income taxes, but refusing to pay based on some high-minded moral grounds could cost you a big fine and maybe jail time.

In an effort to keep folks out of the pokey, the IRS today issued its annual warning against using “frivolous tax arguments” to keep from paying Uncle Sam his due.

“Anyone who contemplates arguing on legal grounds against paying their fair share of taxes should first read the 84-page document, The Truth About Frivolous Tax Arguments.

“The document explains many of the common frivolous arguments made in recent years and it describes the legal responses that refute these claims. It will help taxpayers avoid wasting their time and money with frivolous arguments and incurring penalties,” the IRS says in a press release.

Like I said, the feds really don’t have a sense of humor.

IRS offers draft of small biz health care tax form

The Internal Revenue Service is offering a sneak peek at the new form small businesses will use to claim the health care tax credit next year.

A draft Form 8941 is online at A final version of the form will be available later this year, the IRS said.

Both small businesses and tax-exempt organizations will use the form.

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E-mail scam targets electronic tax payment system

Paying taxes is annoying enough, but a new e-mail scam is making it even more of a pain.

The Internal Revenue Service said today that a new e-mail scam targets businesses and individuals who use the Electronic Federal Tax Payment System to pay their taxes.

“This scam claims you made a tax payment through EFTPS that was rejected,” said IRS spokesman Dan Boone.

The IRS does not send e-mails about your taxes, Boone added.

If you get one of these scam e-mails, or anything similar, forward the e-mail to the IRS using the instructions at

Free money from the IRS

The IRS today announced a bit of good news for employers and employees. That’s a sentence you rarely read.

As a result of the Affordable Care Act, “health coverage provided for an employee’s children under 27 years of age is now generally tax-free to the employee,” according to a press release.

What this means is that companies with cafeteria plans can allow employees “to begin making pre-tax contributions to pay for this expanded benefit,” the IRS said. The release defines cafeteria plans as those “that allow employees to choose from a menu of tax-free benefit options and cash or taxable benefits.”

Details on the IRS guidance are available here.

Read the full press release here.

Top tax scams of 2010

It’s tax season and you know what that means — tax scams galore.

New scams pop up every year. Tthe Internal Revenue Service today released its “dirty dozen” list for this year.

The list includes some traditional favorites — hiding income offshore — and modern twists on old scams — using Twitter and phony Web sites to lure victims into revealing personal financial info.

As always, if it sounds too good to be true it probably is.

For your viewing please check out the IRS tax scam video here. Here’s one for tax preparers.