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m- TAX FACTS 8 Some misconceptions about the Internal Revenue Service and its operations have sprung up over the years. Because these misconceptions can cause taxpayers needless worry and apprehension, the IRS has prepared the following questions and answers to allay any doubts these misconceptions * may have caused: Q. Is it true that if I get called in for an audit, I may wind up in jail? A. An audit is not an ad­ versary situation. It is really only a review of some specified parts of your tax return. Some audits are "no- change": IRS asks for substantiation, and you are able to provide the in­ formation. Some audits result in additional refunds for taxpayers, and of course, a substantial number result in additional tax being assessed. You always have the right to appeal an out­ come of an audit, if you are dissatisfied with the result. Only those persons who are guilty of willingly and knowingly refusing to pay taxes owed need worry about the possibility of jail. ^ Q. Why is everyone so afraid of a tax audit? A. Most people are afraid of what they don't know. However, a tax audit is not intended to be an adversary situation; it is merely an examination of certain specific issues on a tax ^return. Q. Is using my correct Social Security number all that important? After all, my name and address is oh the return. A. The correct Social Security number is that important - it is the principle means of identifying tax­ payers. However, if there is a problem with your Social Security number - you're not sure of it, or you lost your card and don't remember the number - only the Social Security Administration and not IRS can issue the correct number, or verify that the one you believe is yours actually is. Q. Does it really matter which Social Security number appears on the return? Yes, it is very im­ portant that the husband's number be first and the wife's be second on a joint return, regardless of who prepares the return. Failure to list them in that order will result in a delay in processing the return. Q. If we owe IRS, they charge us interest, but if IRS owes us, they won't pay interest to us. Why not? A. Generally, the law requires that interest be paid at the going rate 45 days after the due date or the date of filing, whichever is later. Most taxpayers receive their refunds within 45 days, and consequently without in­ terest. Compensation Doctor-Jones, your wife doesn't look right to me. Jones--To me neither, but close your eyes and taste her cooking. Bat Definitely Patient-Are you sure this is pneumonia? Sometimes doctors prescribe for one thing and patients die of something else. Doctor (With dignity)- When 1 prescribe for pneu­ monia, you die of pneu­ monia. Security American Family's Special Homeowners Package Policy. Complete security for that special place you call home. It's the most comprehensive, home­ owners coverage we've ever offered. Call me today. 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