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The Virtual Woman: A Woman's
Weekly Guide To Cyberspace

Handling Tax Woes is Virtually a Breeze

April 15th may still feel like a long ways off but there's a lot of free-floating tax anxiety wafting through cyberspace these days. One glimpse through my email stack and it's also clear that anticipation of big bills from Uncle Sam is creating more than a few gigabits of worry. Whether your nightmares include botched tax breaks or visions of federal prison, fire up that modem and check out the links in this week's column!

Dear Virtual Woman:

I have been dating a terrific guy for several months and we are planning to marry. The problem is he just confessed to me that he has not paid income taxes for several years. He believes he will not be caught since it has gone on for so long. I'm filled with a sense of doom and don't know where to turn. My hope is that an on-line search might help me to get information anonymously. Please explain how I can explore possible consequences and options before I decide whether or not to continue in this (up-to-now) wonderful relationship.

- Sleepless in Anonymous City, Seattle

Dear Seattle:

You are super smart to look closely at the situation now, before you take the big leap. While the excursion I have mapped here will not reveal information specific to any individual, it should give you a general sense of a how the system works and what might happen. These sites are also good resources for those with minor tax problems.

Believe it or not, the first visit I recommend you go to is (gulp) the IRS. Remember, they are kinder and gentler these days, and this is reflected in user-friendly web pages. Start with the Consumer Advocate's page: www.irs.ustreas.gov/prod/ind_info/advocate.html. Here you can access the Taxpayers' Consumer Bill of Rights, and you will learn about the Consumer Advocate's Office, which can intervene in the case of hardship. Be sure to read the IRS definition of hardship. Perhaps this will reassure you that something can be worked out, so you can next face the tough stuff--like penalties. You'll find a brief explanation of how these are calculated near the bottom of the IRS's Frequently Asked Questions page at http://www.irs.ustreas.gov/prod/tax_edu/faq/faq3.html. While you are there, read about negotiating a compromise or settlement with the IRS. This is more fully discussed at http://www.irs.ustreas.gov/prod/tax_edu/teletax/tc204.html

Another excellent place to visit is the tax law section of legal self-help publisher Nolo Press. You can access this at http://www.nolo.com/ChunkTAX/TAX.index.html. By the way, I noticed when I scrolled down to the General Tax Concerns section and clicked on Tax Cheaters and Protesters, it explains how the IRS pays rewards for turning in tax cheaters. Where did you say that fiancee of yours was located? Juuuust kidding. (Hey, if you can't have fun answering tax questions then when, I ask, can you?) Seriously, this should alert you to a possible way he may get caught. Also, don't miss another Nolo page http://www.nolo.com/ChunkTAX/tax30.HTML that explains the significance of the passage of six years regarding whether the IRS will file criminal charges.

Finally, you can access information about your state tax regulations through Yahoo at http://dir.yahoo.com/Government/U_S__Government/Taxes/State_Tax_Agencies/.

Hopefully, your knowing a bit about how tax agencies deal with overdue tax debts will help you to sort things out.

Dear Virtual Woman:

I don't want to take the time to learn how to file my own tax return, yet is there an easy way to make sure that my tax preparer is really on the ball and has given me all legally allowable breaks?

- Penny M., Wisconsin

Dear Penny:

An easy approach would be to check out the list of 50 of the most overlooked tax deductions, available at the Ernst & Young site, http://www.ey.com/tax/tips50.asp. This is actually a table of contents from their book, but the list alone is useful, and it's free. Another a list of 25 Common tax preparation errors is found at http://www.ey.com/tax/tips25.asp. I also recommend that you visit the IRS site for quick, clear definitions of different types of income and how they should be reported at the IRS at http://www.irs.ustreas.gov/prod/tax_edu/faq/faq7.html. After these site visits you will have some excellent, easy-to-understand assessment tools. Good luck and many happy returns (sorry, I just couldn't resist).

Happy Surfing!

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