Stacie's Tax Stuff

WASHINGTON — The Internal Revenue Service recommended and the Department of Treasury approved the selection of 27 new members to serve on the nationwide Taxpayer Advocacy Panel (TAP). The TAP is a federal advisory committee charged with providing taxpayer suggestions to improve IRS customer service.

The new TAP members will join 46 returning members to round out the panel of 73 volunteers for 2014. The new members were selected from more than 400 interested individuals from across the country who applied during an open recruitment period last spring or the pool of alternate members who applied in prior years.

“TAP member volunteers are counted on to recognize important taxpayer issues and bring them to our attention,” said IRS Commissioner John Koskinen. “Their work and advice help the IRS serve the nation’s taxpayers.”

The TAP listens to taxpayers, identifies issues and makes suggestions for improving IRS service and customer satisfaction. Oversight and program support for the TAP are provided by the Taxpayer Advocate Service, an independent organization within the IRS that helps resolve taxpayer problems and makes recommendations to avoid future problems.

“To meet the needs of the taxpaying public, it is critical that the IRS listen to taxpayers to hear what their needs and preferences are,” said Nina E. Olson, National Taxpayer Advocate. “The citizen volunteers who serve on the TAP are, first and foremost, taxpayers who bring a taxpayer perspective to bear in advising on the IRS’s taxpayer service activities.”

TAP members work with IRS executives on priority topics, primarily those involving the Wage &

A list of the new TAP members by location is included below.

Investment and Small Business/Self-Employed operating divisions. Members also serve as a conduit for bringing grassroots concerns raised by the taxpaying public to the attention of the IRS.

TAP members are U.S. citizens who volunteer to serve a three-year appointment and are expected to devote 200 to300 hours per year to panel activities. TAP members are demographically and geographically diverse, providing balanced representation from all 50 states, the District of Columbia and Puerto Rico.

Taxpayers can contact the TAP representative for their geographic area by calling 888-912-1227 (a toll-free call) or via the Internet at www.improveirs.org. Taxpayers can also send written correspondence to the TAP at the following address:

Taxpayer Advocacy Panel (TAP)
TA:TAP, Room 1509
1111 Constitution Avenue, NW
Washington, D.C.  20224

Individuals interested in volunteering to serve on the TAP for 2015 may submit an application via the website www.improveirs.org during the next open recruiting period, which will begin in March 2014.

Are you looking for a hard and fast rule about what income is taxable and what income is not taxable? The fact is that all income is taxable unless the law specifically excludes it.

Taxable income includes money you receive, such as wages and tips. It can also include noncash income from property or services. For example, both parties in a barter exchange must include the fair market value of goods or services received as income on their tax return.

Some types of income are not taxable except under certain conditions, including:

• Life insurance proceeds paid to you are usually not taxable. But if you redeem a life insurance policy for cash, any amount that is more than the cost of the policy is taxable.
• Income from a qualified scholarship is normally not taxable. This means that amounts you use for certain costs, such as tuition and required books, are not taxable. However, amounts you use for room and board are taxable.
• If you got a state or local income tax refund, the amount may be taxable. You should have received a 2013 Form 1099-G from the agency that made the payment to you. If you didn’t get it by mail, the agency may have provided the form electronically. Contact them to find out how to get the form. Report any taxable refund you got even if you did not receive Form 1099-G.

Here are some types of income that are usually not taxable:

• Gifts and inheritances
• Child support payments
• Welfare benefits
• Damage awards for physical injury or sickness
• Cash rebates from a dealer or manufacturer for an item you buy
• Reimbursements for qualified adoption expenses

For more on this topic see Publication 525, Taxable and Nontaxable Income. You can get it at IRS.gov or call to have it mailed at 800-TAX-FORM (800-829-3676).

Additional IRS Resources:

• Bartering Tax Center
• Remember to include Form 1099-G income when you file your taxes

IRS YouTube Videos:

• Taxable and Nontaxable Income – English | Spanish | ASL