The Salina Journal from Salina, Kansas on January 16, 1986 · Page 31
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The Salina Journal from Salina, Kansas · Page 31

Salina, Kansas
Issue Date:
Thursday, January 16, 1986
Page 31
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The Salina Journal Thursday, January 16,1986 , Page Til IRS will compute tax liability on some returns Form 1040EZ and Form 1040A filers and certain taxpayers filing Form 1040 may request that the' Internal Revenue Service figure their taxes for them. Those desiring this assistance must fill in certain items on the return, attach Forms W-2, sign the return, and send it in before the April 15 deadline, according to the IRS. To qualify for this service, taxpayers must have an income of $50,000 or less, not itemize deductions and not use Schedule G, "Income Averaging," or Form 2555, "Foreign Earned Income." Income must include only wages, salaries, tips, interest, dividends, pensions, and annuities, the IRS said. The agency will figure the tax in the way that benefits the taxpayer the most, IRS stressed. Since eligible persons need only complete certain questions, IRS said they will probably finish their returns faster and with less opportunity for error. If a refund is due, the IRS will figure the amount and send it to the taxpayer. If additional tax is owed, it will be computed and a bill sent for the balance. Neither interest nor the penalty for late payment will be charged if the bill for additional tax is paid within 30 days of the notice date, or by the due date of the return. Return copies available Taxpayers who have not retained copies of prior year tax returns can either request copies of previously filed returns or transcripts of certain tax account information, the Internal Revenue Service said. Either request can be made on Form 4506, "Request for Copy of Tax Form or Individual Income Tax Account Information," available by writing or calling the IRS. The charge for copies of prior year returns is $4.25 per return. Alternatively, return information will be provided for $2.25 per tax year. The return information includes marital status, tax shown on return, adjusted gross income, taxable income, self employment tax, and number of exemptions. Full payment must accompany all orders. Allow at least 45 days for delivery when requesting copies of prior year returns, and at least 30 days when requesting return information. Taxpayers must allow at least 10 weeks processing time after the original return is filed before requesting a copy or other information. OCR checks interest figures In a continuing effort to automate the tax processing system, the Internal Revenue Service has begun using Optical Character Recognition (OCR) equipment to ensure that figures supplied by financial institutions are being reported by taxpayers on their income tax returns. The OCR system is part of the Service's Underreporter Program which is designed to identify taxpayers who have failed to report income from sources such as in- terest, dividends, state refunds, etc. For years financial institutions have been required to report interest and dividends paid to customers. IRS had no expeditious way of checking to see that money amounts provided by the financial institutions matched those reported by taxpayers. Taxpayers who have erroneously omitted interest and dividend income should file a 1040X, "Amended U.S. Individual, Income Tax Return." You must file for tax refund Many low-income earners such as students, retirees, and part- time employees are entitled to receive a full refund of the federal income taxes withheld during the year, but they must file a return to get it. Check your W-2, Wage and Tax Statement, to see if any federal income tax was withheld. If any was withheld and you have no tax liability, filing a return is the only way to recover the money that was withheld. If you expect to have no tax liability again in 1986 and your income will be below the amount required to file a return, you can avoid having to file a tax return to recover your tax withheld by giving your employer a new form W-4, Employee's Withholding Allowance Certificate. You may claim exemption from withholding only if you had no income tax liability in 1985 and you expect to have no income tax liability in 1986. The future is no time for surprises, Today you may look at your Individual Retirement Account as simply an investment. But someday it will be your income. And when that day comes, the last thing you'll want is a surprise. Or excuses. About why the money you counted on isn't there. Or why your account didn't earn the rate you expected. So as you plan your IRA program you'll naturally want to look for a fair rate oi return. But more importantly, you'll want to work with a financial institution that's strong enough to guarantee tomorrow. Planters Bank & Trust. When you entrust your future to the leading bank in Salina, you can count on your money being there when you need it. Because not only do you have the security of FDIC protection, but as an affiliate of Fourth Financial Corporation, we back your future with the strength of the largest multibank holding company in the state. With over $2.5 billion in assets. If you're looking toward tomorrow, see Planters Bank today. So when tomorrow arrives, your future will be waiting. Guaranteed. 1UIFMT IV1CW I |S|PIA\TERS fe tf bank and trust c*o. 138 N SanlaFe I913I 825-7221 Planters South 2040 S Ohio Motor Bank 127 North Filth Salina. Kansas 67401 Member FDIC 24-Hour VIA Teller 645 E Crawlord lEImore Cenlerl There is a substantial interest penalty for early withdrawal and all federal regulations apply. i •

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