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/FIRST ADD -- DC003 -- TAX FILING SEASON STARTS SATURDAY/

 TAX TIME 1993
 Tax Packages
 On Jan. 2, 1993, the Postal Service will begin delivering over 107 million income tax packages. IRS expects to receive more than 116 million tax returns this year, with continued growth in such alternatives as the 1040PC format and electronic filing:
 TYPE OF FILING 1992 1993
 1040PC Format 1.5 m 6.7 m
 Electronic Filing 11.0 m 14.0 m
 Form 1040EZ 17.1 m 16.8 m
 Form 1040A 20.4 m 18.5 m
 Form 1040 64.8 m 60.5 m
 In December 1992, over 11 million postcards were sent to farmers and self-employed taxpayers who used a paid preparer last year. The postcard includes a pre-printed label and tells tax payers to take the card to their preparer who has tax forms available for them to file.
 The printing bill for the tax packages is $12 million with postage costing


another $19 million. This works out to an average cost of 30 cents for each package.
 Additional forms and publications are available by calling 800-829-3676, Monday through Saturday.
 Filing Alternatives
 IRS provides several alternatives to traditional paper filing methods:
 -- Electronic Filing System -- 14 million taxpayers are expected to file electronically -- up from 11 million last year.
 -- 1040PC Program -- uses tax preparation software to print out tax returns which show only those lines actually completed. The software may give the taxpayer the option of direct deposit.
 -- TeleFile -- for 1040EZ filers is being tested again in Ohio. A voice signature is a new aspect being tested this year.
 What's New for '92?
 -- Expanded Income Tax Table -- from $50,000 to $100,000 -- in the Form 1040 tax packages. Fourteen million more taxpayers can now use the tax table, cutting down on errors made when figuring the tax amount.
 -- Schedule C-EZ -- for self-employed taxpayers who have gross business receipts of $25,000 or less and have $2,000 or less in business expenses. The Schedule C-EZ reduces the number of lines to complete from 44 to 15. IRS estimates that 3 million self-employed taxpayers can use the new form.
 Inflation Adjustments for 1992
 The filing requirements, personal exemption, standard deduction and earned income credit amounts are adjusted each year for inflation. This year all of these amounts have increased.
 -- The 1992 filing requirements are:
 Single $5,900
 Head of household $7,550
 Married filing joint $10,600
 Married filing separately $2,300
 Qualifying widow(er) $8,300
 These amounts are different if the taxpayer or spouse is age 65 or older, or if the taxpayer can be claimed as a dependent on someone else's return.
 -- The personal exemption amount for 1992 is $2,300 -- $150 more than last year. Higher income taxpayers may have to reduce the personal exemption amount they claim if their adjusted gross income exceeds:
 Single $105,250
 Head of Household $131,550
 Married filing jointly or
 Qualifying widow(er) $157,900
 Married filing separately $78,950
 There is a worksheet in the tax package to figure the amount of the personal exemption.
 -- The increased standard deduction amounts for 1992 are:
 Single $3,600
 Head of Household $5,250
 Married filing jointly or
 Qualifying Widow(er) $6,000
 Married filing separately $3,000
 These amounts are different if the taxpayer or spouse is age 65 or older, is blind, or if the taxpayer can be claimed as a dependent on someone else's return.
 -- The earned income credit dollar limits have increased. Income must be less than $22,370, including any nontaxable earned income. The maximum credit has increased to $2,211, up from $2,020.
 Tax Law Changes
 -- Seller-financed Mortgages -- The Energy Policy Act of 1992 requires that home buyers with a seller-financed mortgage include the seller's name, address and social security number on Form 1040, Schedule A, Itemized Deductions. The seller must include the same information on the home buyer on Form 1040, Schedule B, Interest and Dividend Income or Schedule 1, for Form 1040A filers. IRS encourages taxpayers to make every effort to secure this information. However, because this new legislation was passed late in the year, the IRS has decided not to penalize taxpayers who are unable to obtain the information this year.
 -- Self-employed Health Insurance Deduction -- Because of a previous law that expired, taxpayers can only claim up to one-fourth of the premiums paid before July 1, 1992. Last year, taxpayers could claim up to one-fourth of the premiums paid for the entire year.
 Where To Get Free Assistance
 -- Telephone Help -- available by calling 800-829-1040, Monday through Friday during regular business hours. Last filing season, over 18 million calls were answered on the toll-free lines. Last year the number of correct responses by IRS assistors increased by four percentage points to 88 percent. This year IRS expects to exceed 88 percent.
 -- Recorded Tax Information -- Tele-Tax has about 140 topics available 24 hours a day using a touch-tone phone. Taxpayers can call to hear recorded information on tax subjects such as earned income credit, electronic filing, 1040PC tax returns and what to do if you can't pay your tax.
 Twenty-nine million taxpayers used Tele-Tax last filing season for recorded tax information.
 -- Automated Refund Information is also available through Tele- Tax. Twenty-six million taxpayers used the system to check on the issuance of their refund checks. To use Tele-Tax taxpayers can call 800-829-4477 in most of the United States or check their tax package for a local number.
 -- Walk-In Help -- available at local IRS offices -- Volunteer Income Tax Assistance and Tax Counseling for the Elderly -- Over 3 million taxpayers were assisted through these IRS volunteer programs. Often these programs are set up in shopping centers, libraries, churches or neighborhood community centers. To find out where to go for this free assistance, taxpayers should call 800-829-1040.
 -0- 12/28/92 AA DC003
 /PRNewswire -- Dec. 28/
 /END FIRST AND FINAL ADD/


CO: Internal Revenue Service ST: District of Columbia IN: SU:

IH -- DC003A -- 0100 12/28/92 14:04 EST
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Date:Dec 28, 1992
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