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How to Contact the IRS or State Tax Authority

Need to contact the IRS? Here’s what you need to know.

When in the course of the tax season it becomes necessary to contact the IRS, you may have to wade into the tangled thickets of the nation’s tax bureaucracy. But never fear! Talking to the IRS is not as dreadful as it seems on first take.

Individuals can reach the IRS toll-free at 1-800-829-1040, Monday-Friday, 7:00 a.m. – 7:00 p.m. your local time (though Alaska and Hawaii should follow Pacific Time).

The IRS has a special phone number for those who believe they are the victim of identity theft. If this has happened to you call 1-800-908-4490.

When you call, you will have to navigate through an automatic system designed to direct your call to the right department. If you wish to bypass the automated system, press “0” repeatedly and you will be immediately routed to a live agent. Try it: it works!

Continue reading “How to Contact the IRS or State Tax Authority”

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A Tax Savings Guide to the Holidays: Charitable Contributions

Get into the holiday spirit with gifts to charities and you could be gifting yourself a tax deduction

These days the holidays tend to involve lots of buying stuff, partying, and hectic travel. Don’t get me wrong, these activities can all net you some pretty valuable tax deductions as long as they’re done according to IRS rules.

But you can also get a tax deduction by getting into the more traditional spirit of the season, the spirit of giving.

Not only does giving to charity fit in well with the spirit of the holidays, but December also conveniently falls at the end of the year. That means that you can pretty accurately look ahead to tax season and plan your charitable giving (and by extension your deductions) so that you get the biggest possible tax benefit. You may even be able to give enough to charity so that you get bumped to a lower tax bracket.

But in order to get a deduction you have to make your donations to a group recognized by the IRS as a charitable organization. These groups must be nonprofits of a religious, charitable, educational, scientific, or literary nature or they must be involved in preventing cruelty to animals or children. Continue reading “A Tax Savings Guide to the Holidays: Charitable Contributions”

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A Tax Savings Guide to the Holidays: Tax Deductible Business Party

You can save tax money by throwing a holiday party – but make sure it’s business-related

In parts one and two of our guide to saving on taxes during the holidays, we talked about scheduling a business meeting on the way to visit relatives and deducting part of your travel expenses as well as putting a tax deductible gift to yourself under the tree.

Another great idea for saving tax money during the holidays is to throw a tax deductible holiday party for your employees or customers.

Not only is throwing a party a great way to get into the holiday spirit, it can boost employee morale and make your customers/clients happy.

But it’s not all fun and games. Your party must be directly related to your business in order for you to deduct it. Essentially what this means is you can’t go too crazy. The IRS will disallow anything it considers lavish or extravagant as well as anything that isn’t directly related to your business. Continue reading “A Tax Savings Guide to the Holidays: Tax Deductible Business Party”