MONEY AND FINANCE

Taxpayer Advocate

Believe it or not, the IRS actually has a department called Taxpayer Advocate. They are responsible to help you the taxpayer with your problem should the IRS have not answered your questions or are being overly slow with your particular situation.

The advocate does not interfere in audits nor do they represent you in Tax Court. Their job is to make sure your case didn’t fall through the cracks and you are getting the help you need.

Another advocate that most people don’t think about is their own Form 1040. This is the form many Americans use to file their taxes. Unfortunately, it is viewed as just a form that is a necessary evil.

If people would look at it through the eye of a financial planner, they would probably benefit greatly. This form is sectionalized with a place for every type of income as well as deductible expense.

For example, take taxable interest. You must declare interest earned from certain sources and pay taxes on this amount. If you looked at this amount and felt it was too high, the form just shocked you into thinking about reducing this amount.

You can legally transfer the money from the taxable interest account into one paying tax free interest or one paying tax deferred interest. The form just became your non-paid financial planner.

Examples like this abound on page one of the 1040 because that page is the snapshot of your picture as it exists at that point in time. Obviously you don’t have do a thing but if you want to maximize your dollars today or plan for a well funded retirement you just might want to re-orient thinking about the Form 1040.

Some people don’t have a clue about financial planning or how to even go about it. Fortunately, an ebook resource exists that has analyzed the 1040 and contains suggestions on each of the analyzed sections.

If you want your financial situation to take on a rosier glow it may be a good idea to dust off your 1040 and turn it into your financial road map. It really is that easy especially with a resource that has already done the work for you.

Walter: Mr. Cash’s Top Advisor