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IRS: FAILING TO FILE IS NO SOLUTION TO TAX PROBLEMS

 IRS: FAILING TO FILE IS NO SOLUTION TO TAX PROBLEMS
 WASHINGTON, April 1 /PRNewswire/ -- The Internal Revenue Service


warned people not to be fooled into thinking that failing to file a return can be the answer to their tax dilemma. Nonfilers who owe taxes face higher penalties, while those who fail to file for refunds could lose their right to the money.
 The penalty for failing to file -- 5 percent per month of the tax due -- is 10 times the late payment penalty: one-half percent per month. And all overdue taxes are subject to interest charges -- currently 8 percent per year, compounded daily. A person who fails to claim a refund within three years of the due date of the tax return loses the right to the refund.
 IRS experience shows that many nonfilers are single people with low to middle incomes. They may lack a W-2 form or an interest statement needed to complete the return. Or they owe a balance they can't pay. Or they skipped filing for one or more years and now they're afraid of contacting the IRS. Those who would get refunds are usually wage earners. Self-employed individuals -- who don't have taxes withheld -- are more likely to have a balance due. However it happened, IRS wants to help nonfilers settle their tax problems.
 IRS offers taxpayer assistance through walk-in offices, a toll- free information number -- 800-829-1040 -- and trained volunteers. For those missing a W-2 form, there's a substitute form to reconstruct income and withholding. An installment plan may be set up for those who can't pay the full amount owed.
 The most important thing, according to the IRS, is to keep fear from letting this year's deadline slip by. By taking action now, those who might otherwise become nonfilers will keep their problems from multiplying on April 15.
 As of March 27, the IRS had received over 62 million tax returns and approved 42 million refunds, worth $41 billion. At $973, the average refund is up 8.3 percent over last year.
 1992 Filing Season Statistics
 Individual income tax returns received and processed
 1991 1992 Percent Change
 (For the week ending March 29, 1991, and March 27, 1992)
 Receipts 4,997,000 4,902,000 -1.9
 Processed 5,836,000 5,965,000 2.2
 Cumulative from Jan. 1:
 Receipts 60,755,000 62,067,000 2.2
 Processed 51,914,000 53,498,000 3.1
 Electronically filed individual income tax returns
 For the week ending March 27, 1992 301,000
 Cumulative for 1992 since Jan. 1 9,861,000
 Cumulative for 1991 for same period 6,794,000
 1992 increase over 1991 45.1 percent
 1992 Filing Alternatives: Total Receipts
 1040PC 786,000 // TeleFile 117,000 // 1040EZ-1 4,700
 Refund comparison
 Refunds certified by Martinsburg Computing Center through
 March 29, 1991, and March 27, 1992:
 1991 1992 Percent Change
 Number 40,639,000 42,196,000 3.8
 Amount of
 principal $36.523 billion $41.053 billion 12.4
 Average refund $899 $973 8.3
 Taxpayer Service filing season statistics
 1/1/91 - 3/30/91 1/1/92 - 3/28/92
 Toll-free phone 13,267,693 13,272,901
 calls answered
 Tele-Tax calls 18,486,161 22,439,876
 Technical tapes 2,450,424 3,210,968
 Refund info. 16,035,737 19,228,908
 -0- 4/1/92
 /CONTACT: Internal Revenue Service, Public Affairs Division, 202-566-4024/ CO: Internal Revenue Service ST: District of Columbia IN: SU:


MK -- DC019 -- 3893 04/01/92 13:06 EST
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Date:Apr 1, 1992
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