May 1, 2024

Bucks: Tactics for Getting the I.R.S. on the Phone

If you need help with a federal tax question, the Internal Revenue Service offers free, live assistance by telephone. But you’ll probably need to be patient when you call.

Wait times when calling the agency have been growing, according to a recent report from the Government Accountability Office.

Millions of people call the IRS each year. Last tax season, the average wait time to speak to a live representative was 17 minutes, up from 12 minutes in 2011, the G.A.O. found.

And the percentage of callers seeking live assistance who actually received it was 68 percent, down from 72 percent the year before. The number of abandoned calls, which means the caller hangs up before speaking to someone, rose 20 percent.

The agency also has been slower to respond to mail. Of the 21 million pieces of paper correspondence the agency received in 2012, about 40 percent were considered “overage,” meaning that the I.R.S. did not respond within 45 days of receipt.

The dwindling service is the result of inadequate funding, according to a report by the National Taxpayer Advocate, the office charged with representing the interest of tax payers in dealing with the I.R.S. “The decline in these key measures is deeply disturbing,” the advocate’s annual report said, noting that telephone calls and correspondence are the two main ways taxpayers communicate with the I.R.S..

“Few government agencies or businesses would be satisfied if their customer service departments were unable to answer three out of every 10 calls,” the report added, “nor would they be content if nearly half of all correspondence took more than 6 1/2 weeks to answer.”

I called the toll-free number on Wednesday afternoon, on the first official tax filing day of the year, to see how long it would take to talk to someone. An operator answered the call quickly, but transferred me to another line, where a recorded voice told me my estimated wait time would be 10 to 15 minutes. I waited 14 minutes, according to the clock on my computer, before I was connected to a representative. That’s better than average, but still a fair bit of time spent on hold.

It’s not clear if there’s any best day of the week, or time of day, to call the toll-free number. The line, (800) 829-1040, is staffed from 7 a.m. to 7 p.m., in all time zones in the United States.

Before I ended the call, I asked the I.R.S. representative if she could recommend the best time of day to telephone the agency, to get the shortest wait time. She suggested calling early in the morning.

An I.R.S. media spokesman didn’t respond to requests for suggestions about the best time to call, although he e-mailed some links to the agency’s Web site that provided a list of walk-in offices where you can go in person to get help.

Bonnie Speedy, vice president of the AARP Foundation Tax-Aide and a former member of the I.R.S. Advisory Council, suggests avoiding Mondays,  particularly first thing in the morning, when call volumes are typically heavy. Calls are routed depending on the complexity of the question, so a call seeking help with a technical tax matter will likely take longer than a simple inquiry about, say, when you can expect your refund check. (The foundation offers free tax preparation for low-to moderate-income taxpayers, especially those 60 and older, at nearly 6,000 locations.)

The tax-filing Web site Taxbrain advises that people call the I.R.S.  Tuesday through Thursday and suggests avoiding 8 a.m. to 9 a.m., and 4 p.m. to 5 p.m., in all time zones. It also helps to be polite and have any relevant documents handy when you call.

Have you sought tax help from the I.R.S.’s toll-free number? What was your experience?

Article source: http://bucks.blogs.nytimes.com/2013/02/04/tactics-for-getting-the-i-r-s-on-the-phone/?partner=rss&emc=rss

Bucks Blog: Free Tax Preparation Software Available

12:06 p.m. Updated / To make clear that the free software is available online; users do not download it to prepare and file their tax returns.

Wednesday marks the official start of tax-filing season, and taxpayers who make $57,000 or less a year can use free online software from the Internal Revenue Service to prepare and file their taxes.

The software is available from the I.R.S. as part of an agreement with the Free File Alliance, a group of 15 commercial tax software providers, including Intuit and HR Block.

Last year, more than three million people used software from Free File to prepare their federal tax returns. Roughly 70 percent of taxpayers, or about 100 million people, are eligible to use Free File this year, according to the alliance.

To see if you’re eligible, the I.R.S. advises, you can check your 2011 tax return for your adjusted gross income for that year. If it was $57,000 or less, and you didn’t have any big changes in income last year, you can probably use the Free File software for your federal taxes.

In addition, 22 states and the District of Columbia partner with alliance members to offer free state returns. Taxpayers can visit the I.R.S. Web site to see which software includes a state return for them as well and choose the one that best fits their needs.

There is no fee for users to submit federal taxes electronically, but some state programs may charge a fee for state returns.

The program is also available in Spanish.

Users must access Free File products through the I.R.S. Web site to avoid charges for preparing or electronically filing their return. Once you select the software program you want to use, you’ll be directed to the software provider’s Web site to prepare and electronically file your return.

The free software is also available at self-assisted kiosks in 29 states through the I.R.S.’s Volunteer Income Tax Assistance Program, which provides walk-in tax preparation help for those making $51,000 or less. Filers who don’t have Internet access at home, but who still want to file their taxes electronically and need additional help can use the kiosks.

Meanwhile, taxpayers who make more than $57,000 a year can’t use the free tax preparation software. But they can use an option called Free File Fillable Forms, which offers an electronic version of the I.R.S.’s paper forms. This option lets more sophisticated tax filers complete their federal return online and file it electronically, at no charge.

Have you used the Free File program? What was your experience?

Article source: http://bucks.blogs.nytimes.com/2013/01/30/free-tax-preparation-software-available/?partner=rss&emc=rss

Bucks Blog: Those Claiming Higher Ed Credits Must Wait to File Taxes

Thursday is the official opening of tax filing season, but taxpayers who are claiming certain higher education credits must wait a bit longer.

Those using Form 8863, Education Credits, will have to wait to file until mid-February, the Internal Revenue Agency says, after it finishes updating its systems for processing the form.

The form is used to claim both the American Opportunity Tax Credit and the Lifetime Learning Credit.

The AOTC, as its known, gives families of eligible college students a tax credit of up to $2,500 per year for up to four years; students must be enrolled in a degree program. The credit was extended for five years by Congress in the “fiscal cliff” legislation, formally known as the American Taxpayer Relief Act, passed on Jan. 1.

(The Lifetime Learning Credit offers a credit of up to $2,000; students don’t have to be enrolled in a degree program. This credit wasn’t at risk from the “fiscal cliff,” according to SavingforCollege.com.)

The I.R.S. offered this explanation for the delay in accepting returns using Form 8863: “As it does every year, the I.R.S. reviews and tests its systems in advance of the opening of the tax season to protect taxpayers from processing errors and refund delays. The I.R.S. discovered during testing that programming modifications are needed to accurately process Forms 8863.”

In early January, the I.R.S. said it would have to delay receipt of tax returns until Jan. 30 because of the extensive tax changes passed by Congress in the Taxpayer Relief Act. The agency said it had to update forms and instructions and make adjustments to its processing systems before it could begin accepting returns.

Typically, the agency said, about 3 million tax returns filed through mid-February include Form 8863, or less than a quarter of those filed during the year.

The delay doesn’t affect filers claiming other education-related tax benefits, like the deduction of tuition and fees and the interest on student loans, the I.R.S. said. Those taxpayers may start filing Thursday, with most other taxpayers.

Are you planning on claiming one of the tax credits affected by the delay? How will the delay affect you?

Article source: http://bucks.blogs.nytimes.com/2013/01/29/those-claiming-higher-ed-credits-must-wait-to-file-taxes/?partner=rss&emc=rss