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TAXPAYERS OVERLOOK KEY DETAILS OF TAX LAW CHANGES, ACCORDING TO THE IRS

 WASHINGTON, Nov. 15 /PRNewswire/ -- Calls to the Internal Revenue Service show that many taxpayers have questions about some key details of recent tax law changes.
 For example, many taxpayers think that everyone's tax rates have gone up. In fact, the higher rates affect fewer than 2 percent of taxpayers. The law created two higher tax rates for 1993, but did not change the income levels for the lower rates.
 The new top rates apply for taxable incomes above:
 Filing Status 36 Percent 39.6 Percent
 Single $115,000 $250,000
 Head of Household 127,500 250,000
 Married, joint return 140,000 250,000
 Married, separate returns 70,000 125,000
 Taxable income is figured by subtracting deductions and personal exemption amounts from your total income.
 Some older Americans have expressed concern about new rules for taxing social security benefits. Many senior citizens don't realize that the changes won't take place until 1994 and will impact only about 3 million higher-income recipients. Generally, those affected are persons with incomes, including one-half of their social security benefits, over $34,000 -- over $44,000 if married filing jointly.
 Some retailers eligible for luxury tax refunds are delaying the processing of their checks by not following procedures for filing claims. The new law repealed the luxury tax on boats, planes, furs and jewelry retroactive to the beginning of 1993.
 Many boat dealers and jewelers especially have omitted their customers' taxpayer identification numbers with their claims. They have also failed to attach an accounting of luxury taxes reported or paid during 1993, refunds claimed, and the remaining tax eligible for refund. Retailers preparing their own refund claims should get the instructions for Form 720 for detailed information.
 IRS assistors have received special training in the new tax law changes and can help taxpayers who need information. Taxpayers should call IRS toll-free at 800-829-1040.
 -0- 11/15/93
 /CONTACT: Internal Revenue Service, Office of Public Affairs, 202-622-4000/


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

DC-DS -- DC028 -- 4566 11/15/93 14:55 EST
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Publication:PR Newswire
Date:Nov 15, 1993
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