Here’s How the IRS Contacts Taxpayers

Everyone should know how the IRS contacts taxpayers. This will help people avoid becoming a victim of scammers who pretend to be from the IRS with a goal of stealing personal information. Here are some facts about how the IRS communicates with taxpayers:

● When the IRS needs to contact a taxpayer, the first contact is normally by letter delivered by the U.S. Postal Service.

● The IRS does NOT normally initiate contact with taxpayers by email or phone.

● The IRS does NOT send text messages or contact people through social media.

● IRS revenue agents or tax compliance officers may call a taxpayer or tax professional after mailing a notice to confirm an appointment or to discuss items for a scheduled audit.

● Private debt collectors can call taxpayers for the collection of certain outstanding inactive tax liabilities, but only after the taxpayer and their representative have received written notice.

● IRS revenue officers will request payment of taxes owed by the taxpayer. However, taxpayers should remember that payment will never be requested to a source other than the U.S. Treasury.

● When visited by someone from the IRS, the taxpayers should always ask for credentials. IRS representatives can always provide two forms of official credentials: a pocket commission and a Personal Identity Verification Credential.

Tax Credits To Help Offset Higher Education Costs

If taxpayers, their spouses, or their dependents take post-high school coursework, they may be eligible for a tax benefit. There are two credits available to help taxpayers offset the costs of higher education: the American Opportunity Credit and the Lifetime Learning Credit. Taxpayers use Form 8863, Education Credits, to claim the credits, and you will receive a Form 1098-T from the educational institution.

The American Opportunity Credit is: ● Worth a maximum benefit up to $2,500 per eligible student ● Only for the first four years at an eligible college or vocational school ● For students pursuing a degree or other recognized education credential ● Partially refundable (meaning if the credit brings the amount of tax owed below zero, 40 percent of any remaining amount of the credit, up to $1,000, is refundable.)

The Lifetime Learning Credit is: ● Worth a maximum benefit up to $2,000 per tax return, per year, no matter how many students qualify ● Available for all years of post-secondary education and for courses to acquire or improve job skills ● Available for an unlimited number of tax years

TEXAS SALES TAX HOLIDAY

This year's back-to-school tax-free weekend in Texas is from August 10-12, 2018. The following items priced less than $100 will not be subject to sales tax:

● School supplies

● Backpacks

● Clothing and footwear (Not including accessories such as watches or jewelry. Also excludes clothing and footwear designed exclusively for athletic or protective use.)