Getting Advice on Income Tax

           "We have established a small stock photo agency and hope to make it profitable. We need advice on financial planning, particularly income taxes," the client asked.

            My first response is always to refer them to the free assistance immediately available from the Internal Revenue Service.

           The IRS provides a wide-ranging series of publications to help individuals with their tax planning throughout the year.

YOUR TAX DOLLARS PAID FOR THEM ALREADY

           The publication for self-employment income is Tax Guide for Small Business, Publication 334. The IRS says this annually-updated guide identifies the kind of income they must report and the different deductions they can take.

           Readers also ought to get a copy of IRS Publication 910, Guide to Free Tax Services. It provides a complete list of the agency’s booklets and explains what each one covers. The topics include deductions for home offices and IRAs (Publications 587 and 590, respectively).

           As the title of Publication 910 makes clear, the feds do not require you to shell out for most of their publications; your tax dollars paid for them already.

EXERCISE YOUR OPTIONS

           The IRS provides several easy ways for you to obtain publications and forms for this year (or for past years, as might prove necessary). Dial toll-free (800) TAX-FORM [829-3676]. Or you can order them by mail, using the instruction booklet that accompanies your 1040 form. Allow at least 10 working days for delivery of publications and forms ordered by phone or letter.

           For fax: (703) 368-9694. Follow the voice prompts and key in your response. You may select up to three items to order during a single call. Generally, service is available at all times.

           Computer: http://www.irs.gov., where you can download and print any of 700 federal tax forms with instructions, approximately 100 tax publications, and other tax materials.

           Visit the IRS office serving your area and pick up the publications. To be on the safe side, phone first and find out whether that office stocks what you need. Many libraries also have copies of IRS tax guides

           Reminder: More than one taxpayer has learned, the expensive way, not to rely absolutely on IRS advice, whether it is information that employees give to telephone or walk-in inquiries, or instructions that the agency prints in its publications. The IRS is not bound by mistakes in their instructions or advice.