At a forum in Omaha, Nebraska, yesterday, taxpayers were given an opportunity by the IRS to air their grievances with the tax system. The range of complaints was wide and included one account of being kept on hold for forty minutes after asking a simple question, others worried about identity theft, and some objected to being taxed at all.

The next forum will be in Phoenix and will concentrate on the problems experienced by the elderly. Although there was no information regarding how many of the complaints and suggestions would be acted upon, it is refreshing to see the IRS listening.

Forum Lets Taxpayers Turn Tables on IRS

High interest “tax refund anticipation” loans are popular with many people who need money fast. But they are most popular with people living on 4 Indian reservations in South Dakota.

Some of these loans are taken out prior to even preparing tax returns, in December, and based on paycheck stub information which they use to calculate the anticipated refund. Many use this as a way to get extra money for Christmas and later must go back and pay the preparer up to $150 additional to file their taxes.

The IRS has decided to block tax preparers who offer free services through the IRS Free File program from offering refund anticipation loans, but the same tax preparers offer them at their branch offices.

Tax refund anticipation loans popular on state’s reservations

According to CNN Money, most Americans are clueless when it comes to taxes. 75% of people polled didn’t even know this year’s filing deadline date (it’s April 17).

As we reported earlier, many people are not claiming the telephone tax refund and of those who are, many are incorrectly filing for inflated refunds.

From misconceptions about the AMT (Alternative Minimum Tax) to being uninformed about standard deductions and exemptions, a lot of Americans are less prepared to do their own taxes than they think they are. The result could be receiving a lower refund than they are due or the unexpected arrival of a bill from the IRS.

If you have a complicated return, you may want to use a paid tax preparer who is familiar with the ever-changing tax code.

According to the IRS, about 30 percent of early filers did not ask for the telephone tax refund, and almost half of those omissions were made by paid tax preparers.

“We are surprised how many tax preparers are overlooking the telephone tax refund,” IRS Commissioner Mark W. Everson said. “We want all taxpayers entitled to this refund to get it, whether they are using a tax preparer or doing the return themselves.”

The Internal Revenue Service today urged taxpayers to check to see if they qualify for the telephone excise tax refund after more than 10 million early filers did not request the one-time refund. For people requesting the telephone tax refund, it adds $30 to $60 — or even more — onto a refund.

For information and help on requesting the telephone tax refund, visit the IRS website.