IRS Programs For Taxpayers

[jeffrey]

The Federal Deposit Insurance Corporation (FDIC) wants taxpayers that fall into the low- and moderate-income bracket to make sure to take advantage of the IRS programs and bank services that can are available to them. This includes programs to help them save more money for their future goals such as buying a house or funding a child's education.

A good example of these programs is the IRS-coordinated Volunteer Income Tax Assistance (VITA) program. VITA provides free tax-preparation services for lower income individuals that qualify. Another good example is the new IRS direct deposit options which allow people to split the money they receive from their tax refund into as many as three different bank accounts instead of a single account which was required in past years.

The IRS believes that allowing taxpayers to deposit tax refunds into different accounts will encourage more taxpayers to put part of their tax refund into both savings and checking accounts. The hope is that in doing so, some will be earmarked for saving and retirement rather than being spent.

VITA sites help individuals who cannot afford the services of a private tax-preparer make sure they receive all the tax deductions and credits they qualify. Theses deductions and credits can be worth hundreds of dollars that the individuals may not take on their own. VITA sites are staffed by volunteers who receive certification through the IRS.

Individuals with low- and moderate-income who are interested in obtaining free tax return preparation can call the IRS at 1-800-829-1040 or go to www.irs.gov/individuals to locate a VITA site.