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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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A Tax Savings Guide to the Holidays: Tax Deductible Gifts

Ask Santa to slip a tax deductible gift under the tree and you might not have to fork as much over to Uncle Sam come tax season

Looking for more ways to save on taxes during the holiday season? Why not slip a tax deductible gift under the tree?

You could save a few tax dollars by giving yourself a tax deductible gift for Christmas or Hanukkah – or having your spouse gift it to you. Think a tax deductible gift would be boring? Think again!

Many of the most desirable tech gadgets out there might qualify as tax deductible including, computers, tablets, smartphones, Kindles, cameras, video cameras, and GPS’s, as long as you use them for business.

You can also deduct the cost of self-education, so long as it maintains or improves the skills demanded by your current job, including books, subscriptions to relevant publications, and tuition for a course. Continue reading “A Tax Savings Guide to the Holidays: Tax Deductible Gifts”

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A Tax Savings Guide to the Holidays: Tax Deductible Travel

Schedule a business meeting on the way to visit family and you can deduct some of your travel expenses

For many of us, the holiday season is synonymous with travel. Often very expensive travel. Whether it’s the ever-climbing price of gas or airfare for the entire family, travel expenses can certainly take a chunk out of your wallet.

You may be able to save a little money by scheduling a business meeting – for example with a client or a vendor – on your way to visit family and friends. This would allow you to deduct some of your travel expenses on your tax return.

According to the IRS, “travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job.” You must be away from home for substantially longer than an ordinary work day and your travel or work must require sleep or rest.

These include

  • travel by airplane, train, bus, or car between your home and your business destination
  • using a car while at your business destination
  • taxi fare and other transportation between the airport/train station, hotel, and business destination
  • meals and lodging
  • tips related to any of these services
  • dry cleaning and laundry
  • business calls
  • other similar ordinary/necessary expenses related to the trip Continue reading “A Tax Savings Guide to the Holidays: Tax Deductible Travel”