IRS WAITING TO HEAR FROM 45 MILLION

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, April 15, 1993                   TAG: 9304150223
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: METRO 
SOURCE: From The Associated Press and The Washington Post
DATELINE: WASHINGTON                                LENGTH: Medium
IRS WAITING TO HEAR FROM 45 MILLION
With more taxpayers than usual holding their federal returns until the last minute, the government offered a helping hand to those unable to meet tonight's midnight deadline - and a dire warning to those who ignore it.
The Internal Revenue Service is waiting to hear from 45 million couples and individuals. Professional tax preparers estimate several million were putting off the chore simply because they were getting smaller refunds - or none at all.
"The reason is President Bush's withholding change last year," John Hewitt, who heads the Jackson Hewitt Tax Service, guessed Wednesday. "People who usually owe money owe even more this year, and up to 5 million will owe money for the first time."
Bush permanently reduced most workers' withholding to spur the economy. While that did not change anyone's tax liability, it did give wage earners a little piece of their refund with each paycheck, and cut the big lump-sum refund many are accustomed to.
The IRS said many of its offices will keep late hours today. IRS employees will be on hand at post offices for last-minute help. In Milwaukee, you can get your chance to dunk an IRS official, and donations will go to reduce the federal deficit.
If you need more time, the IRS said, send a Form 4868 (available at many libraries) by the deadline - and take until Aug. 16 to file and pay up. This year you will not be hit with a 25 percent failure-to-file penalty for not enclosing a check for the estimated balance with 4868. You still could be liable for interest and penalty of up to 13 percent until your account is paid.
Can't pay all you owe? Attach Form 9465 or a handwritten note to your return requesting an installment plan; the IRS will let you know within 30 days whether it accepts.
The Justice Department sent a message by announcing that more than 100 people have been indicted since November for failing to file past returns. Scores of others have been charged with running phony tax-refund scams.
Several Washington-area tax practitioners who have been in contact with the IRS said the agency is worried that it may have trouble handling the last-minute surge of returns and so had made it easier to obtain extensions.
IRS officials said that is not the case, that the changes were designed to ease barriers to filing.

by Bhavesh Jinadra by CNB