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Money Talk

You Still Need Records on Interest, Dividends

February 06, 1988|DEBRA WHITEFIELD

QUESTION: I was sorting my tax records the other night and realized that, with the laws changing so much, I don't know which records I have to have anymore. For instance, do I still have to send in interest statements with my tax return? And are there new forms for IRAs since all of those rules have changed?--A. H.

ANSWER: Yes, if you received interest or dividend income last year, you are still required to file Form 1099s, which you will be receiving from the institutions that paid you interest and dividend money.

As for IRA forms, you must file a Form 8606 if you make an IRA contribution for 1987 that isn't deductible from your income. If you still qualify under the new tax law for deductible IRA contributions, you simply enter the amount you contributed on Lines 24 and 26 of Form 1040.

Taxpayers also are still required to file a Form W-2 with their tax return if they earned wages in 1987 and Form W-2P if they received annuities, pensions or retirement pay. Those who sold securities and other property must file a Form 1099-B.

Los Angeles Times Tuesday February 9, 1988 Home Edition Business Part 4 Page 2 Column 5 Financial Desk 3 inches; 74 words Type of Material: Correction
It was incorrectly reported in Saturday's Money Talk column that taxpayers must send their 1099 interest and dividend income forms to the Internal Revenue Service when they file their taxes. The 1099 forms, which are sent to taxpayers by banks and other institutions paying interest and dividends, notify taxpayers how much they received in dividends and interest during the year. Taxpayers should transfer the information on the 1099 forms to the 1040 forms, but there is no need to include the 1099 forms when the 1040 is filed.

Parents claiming child and dependent-care expenses must file Form 2441. Taxpayers who paid foreign taxes are required to file Form 1116. Deductions for casualty losses are reported on a Form 4684.

Unreimbursed employee business expenses are reported on Form 2106. And anyone whose employer picked up all or part of his moving expenses or who is claiming a deduction for moving expenses must file a Form 3903.

You don't need separate forms for deducting such things as state tax refunds and alimony payments, but you must still keep records on them and enter the appropriate amounts on your tax return.

And if you are claiming a deduction for medical, dental or interest expenses or had income from a business, farm, rental properties, partnerships, trusts or estates, you will be required to file tax schedules.

Q: I contacted the IRS two months ago about a problem with my 1987 taxes and I still haven't heard a word from them, even though they promised to get back to me within three weeks. I've since tried calling but either get put on hold so long I hang up or get promised that someone will call me back and they never do. What can I do?--E. N.

A: Call the IRS office in any city and ask for the name and phone number of an IRS problem resolution officer.

These people are paid to resolve taxpayer problems such as yours.

Specifically, they are the ones to call if you think the IRS has made a gross error or when you've made an inquiry but haven't received a response within 45 days. Problems that remain unresolved after three IRS notices also may be taken to a problem resolution officer.

These officers are also the ones to call after you have exhausted other avenues in trying to get a refund due you. The procedure is this: You file a request for a refund and after 90 days elapse without it arriving, you inquire about it. If that inquiry still doesn't produce a refund, you inquire a second time. After that second inquiry, you are permitted to contact the problem resolution officer.

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