Snared by the I.R.S. computers: this is the season for 'discrepancy notices' on 1989 returns

Article Abstract:

Discrepancy notices from the US Internal Revenue Service (IRS) tend to concentrate in two periods: one is at the start of the year, when the IRS hurries to meet the deadline on the three-year statute of limitations; and the other follows soon after Apr 15, when the IRS has absorbed the current year's returns. According to Michael A. Perry, a tax partner at McGladrey & Pullen, an accounting firm, notices for the 1989 tax year will start to go out in Jun or Jul of 1991. Such a notice usually means that information returned to the IRS by a taxpayer does not match against either a W2 form from an employer or a Form 1099 from a bank or broker that the IRS has received. Common problems include: failure to report income; reporting income but listing it incorrectly; failure to compute self-employment income properly; or for one of various reasons, the IRS computer encounters a difficulty. Whatever is the problem, the taxpayer should deal with it, respond immediately and keep a copy of the response.

Finance, taxation, & monetary policy, Tax law, Accounting, Tax planning, Tax auditing, Tax audits, column

---

The latest pitch: 1040PC and the promise of a speedy refund

Article Abstract:

Computer-based tax preparation is recommended by the Internal Revenue Service (IRS) as a way to reduce error, save time and speed up refunds. The IRS is offering the new 1040PC form, in hopes of reducing errors both from taxpayers and the IRS. The new computer form does not offer electronic filing, however, which the IRS has no plans to extend to individuals taxpayers. Users must still sign and mail the computer printout, which is then retyped by IRS clerks into computers. However, such software can reduce the form's complexity, only generating lines which are appropriate, and either steering users through tax preparation or accepting data and then compiling it. The IRS feels the computer-assisted forms will be more accurate both from the standpoint of the tax filers and the IRS employees who process them.

Prepackaged software, Software, Tax returns, Electronic filing, Software Packages

---

Similar abstracts:

• Abstracts: Star of the sitcoms: as Friends leads the gen-X TV invasion, Canadian Matthew Perry is riding high. Reality check
• Abstracts: Attention, shoppers: Wal-Mart's arrival has forced retailers to focus on customers. The clone crackdown: golf's big companies fight look-alike clubs
• Abstracts: They break into computers to keep the bad guys out. 'Why I love America'. How to keep your memory strong
• Abstracts: New task for the computer: making clothes. Keeping clothes defect-free. Industry group pushes for trade law changes
• Abstracts: Now a stolen car can summon the police. Ask Computer picks 3 to head new units. Management of Gtech leading investor group

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.