Tax - Asking IRS to Figure Out Your Taxes

Yes, the Internal Revenue Service can help you with the tax calculations on your return, subject to some requirements and restrictions.

You are still required to make the relevant entries and the usual declarations on the tax form so that IRS can arrive at the final figure for you.

You may also have to include the supportive schedules and forms to your tax return be it 1040, 1040A or 1040EZ.

The rule of the thumb is:

Whatever information is already in your hands, you will have to enter it on the appropriate line.

Where the taxman can make entries for you are those lines which ask you to add or subtract amounts entered on previous lines.

The other entries some people may require help with are those which require worksheets or rate charts provided by the IRS.

E.g., Earned Income Credit , Credit for the Elderly or the Disabled.

You provide the required information on the relevant form or schedule for those credits and such credits needing additional references will be calculated for you.

IRS will send a refund for any excess payment you made at the time of filing.

If your tax payment is not sufficient, you will receive a bill for the balance.

To avoid interest or penalty for late payment, you must pay the balance due:

- within 30 days of the date of the bill

OR

- by the due date for your return,

whichever date comes later.

To avail this service, you have to meet some conditions:

1. Your taxable income should be below $100,000.

2. You are not subject to any Alternative Minimum Tax (AMT) which would requires Form 6251.

3. You should file your return by the due date. For this tax season, it is April 18, 2011.

4. You cannot have your refund directly deposited into your accounts.

5. You income should include only

- Wages
- Salaries
- Tips
- Interest
- Dividends
- Taxable social security benefits
- Unemployment compensation
- IRA distributions
- Pensions
- Annuities

6. Your income should not include any foreign earned income that requires submitting Form 2555 or 2555EZ.

7. You won't be able to request that any part of your refund applied to your 2011 estimated tax.

8. You are satisfied by standard deduction and do not want to itemize deductions.

9. You should not have any of the following situations that require you to submit special tax Forms:

- Archer Medical Savings Accounts (MSAs) and Long-Term Care Insurance Contracts (Form 8853)
- At-Risk Limitations (Form 6198)
- Health Savings Accounts - HSAs (Form 8889)
- Nondeductible IRAs (Form 8606)
- Parents' Election To Report Child's Interest and Dividends (Form 8814)
- Qualified Adoption Expenses (Form 8839)
- Qualified Disaster Recovery Assistance Retirement Plan - Distributions and Repayments (Form 8930)
- Social Security and Medicare Tax on Unreported Tip Income (Form 4137)
- Tax for Certain Children Who Have Investment Income of More Than $1,900 (Form 8615)
- Tax on Accumulation Distribution of Trusts (Form 4970)
- Tax on Lump-Sum Distributions (Form 4972)
- Uncollected Social Security and Medicare Tax on Wages (Form 8919)

REMEMBER: IRS can help you with your calculations promptly only if you help them with all the information you have to provide.

PLEASE NOTE: This is only an introductory article on the subject. For more detailed information, please refer to the latest resources provided by the Internal Revenue Service (IRS).