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IRS Rejection Codes

If the IRS rejects your tax return, these codes will explain what went wrong

Getting your tax return rejected by the IRS can mark the outset of a serious freak-out session. Thankfully the process of correcting and re-submitting your return often turns out to be fairly painless.

When you attempt to e-file a return and it gets rejected, the IRS will send you a code which tells you exactly what’s wrong with your return so you can fix it and e-file it again.

This is just another of the many reasons why it pays to e-file. If there’s a problem with your return, you can correct and re-submit your return instantaneously not only ensuring accuracy but making sure that you get your refund as soon as possible.

If your return is rejected, find your rejection code either on the short list of common rejections below or on the complete list at the bottom of the page. Then correct the error on your return and re-submit it to the IRS. Continue reading “IRS Rejection Codes”

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What Are Taxpayer Advocates and When Should You Call Them?

Taxpayer advocates can help you resolve problems with the IRS, especially if they are causing you financial hardship

If you’ve ever had a tax problem, someone may have suggested that you contact a taxpayer advocate. But who are these taxpayer advocates and what exactly do they do?

The Taxpayer Advocate Service (TAS) is an independent organization inside the IRS. They serve as your voice inside the sometimes opaque IRS. They’re free, so you have nothing to lose in contacting them. Oftentimes with tax issues, the worst thing you can do is nothing at all.

When you should contact the TAS?

When should you contact the Taxpayer Advocate Service?

  • If you are experiencing economic hardship, for example if you are unable to afford basic necessities like housing, transportation, and food.
  • If you are unable to resolve a problem with the IRS by speaking to a normal representative (1-800-829-1040).
  • If you believe there’s a problem with an IRS system or procedure that needs to be corrected or improved. Continue reading “What Are Taxpayer Advocates and When Should You Call Them?”
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What Is Alternative Minimum Tax?

If you make more than $37,225 you could be hit by the Alternative Minimum Tax

The Alternative Minimum Tax (AMT) is a parallel system of income tax that makes sure wealthy taxpayers pay at least a minimum amount of tax, primarily by limiting the benefits available from deductions.

You could get hit by the AMT if an adjusted calculation of your taxable income lies beyond a certain threshold, called an exemption. If your income is above the exemption, you must pay either the normal income tax or the Alternative Minimum Tax, whichever is greater.

For 2011 taxes, the AMT exemption levels are $48,450 for single filers and heads of household, $74,450 for married couples filing jointly, and $37,225 for married taxpayers filing separately.

For the early birds already looking ahead to next year, the AMT exemption levels for 2012 taxes are $33,750, $45,000, and $22,500 respectively. Continue reading “What Is Alternative Minimum Tax?”