chairman, if i may jump in here, i do think the irs is doing a rolling research study. so they're going to be doing three years rolled up at a time. so you would be able, even though you may be a bit behind, you would -- when 2006 is done, you would do 2007, 2008, 2009 rolled together and then you just move one year on as you go along. to the point about how long it really does take, if you have even 2006, some people are filing in october 15 9/and you may want those people in your random sample because there may be some complex returns. soap you're waiting for those to go through the processing. and then taxpayers have rights. so even those 14,000 audits that we have, they may want to go tie paels before they go to tax court. if they go to tax court, it may take a year and a half before they're out of tax court. we have to wait until we're final on the whole issue. we don't know what's going to be in that 14,000 case sample, whether there are going to be some tax court ones or not. so much it's not an easy thing. i do think that the irs' proposal about the rolling samp

if you're individual. it's almost like you're out of state. has the irs truly looked at the possibility of streamlining the process, and certainly, if you could get rid of all of the pages by pages by pages, i think between -- you could shrink the government size, one; two, make the paperwork simple, i would think there would have to be some savings on the table, and i'll just take your comment off line. >> mark, are you still with us? >> yes, i am. >> why didn't you reach out to her agency? >> in all of my tax years, i had an issue in '06 where they asked, you know, for me to be audited. my issue now, and actually, i even tried to e-mail miss olson. my issue now is i wasn't able to make my audit day, and i'm begging for an audit. i'm actually saying, please come audit me so i can get this issue behind me, and i've contacted her d.c. office, i sent an e-mail to someone there -- >> mark, nina has a question for you. >> i don't want you to give me your information over the phone, but perhaps you could share the person handling the phones your information so

if the irs vent gotten to it, it's out of the queue. that's my understanding and you can correct me if i'm wrong, commissioner. but and so if they haven't proven it by then, how do they know it was fraud, fraudulent. >> and much of the tax gap stock exchange not in that the queue. it's there are significant parts of the tax gap that irs doesn't detect in the sense of identifying the particular taxpayers that owe that amount. one of the issues here is that a significant portion of the tax gap is envelope very small amounts of money spread over millions of taxpayers. there are a lot of small businesses that have reporting problems both intentional and unintentional. they're small. by definition the tax liabilities there are small and it raises a question of whether it's worth going after them because to find the unpaid taxes in many cases you'd have to audit them. and then another question is how intrusive you want the tax system to be to find those relatively small amounts spread over, again, millions of taxpayers. >> so if i could, just

if you're incorporated, that does not have to be recorded to irs. if you're not incorporated, does have to be recorded to irs. one suggestion per additional information reporting there

if you force taxpayers to articulate they will put all their money into the 1099 and say the irs is going to audit me. the report money on this other line, the non 1099 income and you disappear even if people are reporting a one hundred dollars and go to $1,000 that is $900 per taxpayer and that is a lot of money. we used that behavior modification that drives people to more compliant behavior because they're looking at it. that is a very important tool. that is the policy behind information reporting. you don't just need it for a third party. you do it for what they have to report on their return. >> thank you for your generosity. the gentleman is more than welcome. i want to turn the discussion towards identity theft and the issue the ranking member and i focus on with staff and both sides and subcommittee staff. certainly want to command the irs for increased focus on this issue and certainly a necessity as we see numbers going up each year of those who are seeking to defraud the american people through identity theft related tax refunds. one of the issues is the taxpayer protection un

believe that's the statute of limitations for it, for someone having to pay their tax obligation, if the irs hasn't gotten to that, it's out of the queue. that's my understanding. you can correct me if i'm wrong, commissioner. so if they haven't proven it by then, how do they know it was fraudulent? >> much of the tax gap is not in that queue. one of the issues here is a significant portion to have tax gap is in very small amounts of money spread over millions of tax payers. there are lots of small businesses that have reporting problems both intentional and unintentional. they're small by definition the tax liabilities there are small. it raises a question of whether it's worth going after them because to find the unpaid taxes in many cases you'd have to audit them. and then another question is how intrusive you want the tax system to be to find those relatively small amounts spread over again millions of tax payers. >> there's a ten-year statute for us to collect the money. the older and colder the debt, the less likely it is we're going to collect it. we do have offsets that occur constan

i would suspect if i had the irs do my taxes, probably you would get the samefigure. this thing is so tangled. i think if we try to untangle it, a couple things will happen, those lawyers who do tax stuff, they're going to descend to washington, d.c. to protect their interests. when the debt gets so high, i >>olson, tkof#of .itr ver you on the christian science monitor shows you helping a -- the problem at hand was an individual retired. even hard for you. >> yes, and i do tax returns for me and my family, tax returns for my family. we can take a lot of lessons from 1986 where we really did get major tax reform. but it took about six years of hard work and four years of intensive work. getting the plant shot down, going to the drawing board. about two years of really hard legislative work and it died several deaths. somebody said to me at one point, bill gale from brookings, said to me at one point, the tax reform that's going to happen that will really work, is something that every day looks at as impossible. so something that's going to happen is what we view as impo

if you're incorporated, that does not have to be reported to irs. you're not incorporated it is have to work at. so one suggestion for additional information as to extend not to contract resort inc. payments for services with real estate where we've recommended reporting. for additional information can be provided. one is on reporting on mortgages. currently the 1090 forms the mortgage information do not include the address of the mortgage property and that creates problems for irs in sorting out suspicious returns from correct returns because it's not easy to tell many properties some unknowns. but for both sorts of opportunities to. one other point i mentioned is quite a bit of discussion about return on investment. recent work we've highlighted the importance of doing more abstinence both for proposed initiatives and then after the fact train to calculate in trying to measure the actual return from investment on compliance initiative so that serve as far as what his benefactors, what's been lost is that it than i thought it would be and that rais

if you're a cheater, the irs wants to find you. coming up on "the american tax cheat," country-music legend willie nelson sells his memories to help pay a $16 million tax bill. but first, small-town accountants turn unwitting clients into tax evaders. >> he said, "you know, you could clients into tax evaders. >> he said, "you know, you could look at prison time for this." >> quick: high up in arizona's white mountains, railroad supervisor shirley cornett finds out how far the irs will go to recoup their losses. for several years, she uses a local firm named accurate consulting to prepare her taxes. >> they've been around for 25 years, up here in our little small community, and been preparing taxes for that long. >> quick: accurate had been getting her about $4,000 a year in tax refunds. then, in 2008, the firm tells clients about special new tax-preparation methods that yield even larger refunds, with the company pocketing 10%. they tell cornett it is a well-kept secret normally reserved for a privileged few. >> it was the way sena

we decided to go to the irs, the whistle blower act to the irs and charge them with fraudulent practices. ife were to have the kind of links to a corporation or series of corporations that alec has, we would be violating the tax code. we want the irs as a whistle blower complaint to tell us whether or not they are operating fairly and appropriately under the rules of the irs. >> you are a former congressman. i was the attorneys general and states have jurisdiction responsibility of enforceing charitable laws such as alec or what pretends to be a charitable entity. what is the distinction between lobbying and what alec said it did which is giving companies an opportunity to con together, consort and get ideas. >> i served in congress for 12 years. lobbyists would come to me with talking points and give me memos on issues that they cared about and when they liked the way i voted they would give me legal contributions. but all of those activities were hard-core lobbying. they had the file with the appropriate documents and paperwork. in this case companies like coca-cola, pepsi kraft foods and

this would be a big dent in the debt if we simply put the resources into the irs to collect the money owed. over and above that, this committee, this subcommittee, led by my colleagues, mr. plats and mr. towns has done a lot of work on the issue of improper payments and, mr. miller, i think you were covering that in your testimony. what's the estimate of annual improper payments, mistakes made, refunds sent to people who didn't qualify or the amounts are wrong or whatever it may be, but what's the estimated annual improper payment for irs in. >> just to give two examples. >> is there a global figure? you have 450 billion tax gap. what's the comparable figure for annual improper payments? >> let me respond by saying that i can tell you definitively that under the additional child tax credit it is estimated at $4.2 billion a year although the irs under an interpretation from treasury disputes whether or not that's an actual improper payment, you know. we don't believe we don't believe that that authorizes the payment of the additional child tax credit to people who are not u.s. citizens

if you are inc., that does not have to be reported to the irs and if you are not incorporated does have to be reported to irs so one suggestion for additional information reporting is to extend that to contractors who are inc.. payments for services by services of real estate is another area where we have recommended increased reporting of their other -- one example is on reporting on mortgages. currently the 1098 forms that report mortgage information did not include the address of the mortgage property and that creates problems for the irs and sorting out suspicious returns from correct returns. it's not easy to tell even how many properties of somebody else so they're both sorts of opportunities. one other point i would mention is there has been quite a bit of discussion about return on investment. this is something we have highlighted with the irs the importance of doing, more estimates of return on investment both for proposed initiatives which the surface is now doing and then after-the-fact, trying to calculate, trying to measure the actual return from investment on compliance in

to your home office including home insurance and utilities costs, but be prepared for the irs's attention. >> if i've got a big screen tv in there and invite friends over to watch football, you can't deduct it. people have to be really careful. the irs knows that's abuse and they'll check it. >> you have to have really great documentation and photographs even of your home office to ensure if you get audited, you have backup to prove you did the right thing. >> reporter: your commute is not deductible, but you can claim a vehicle if you really do use it for business. >> if you're a painter or contractor, it's pretty clear whether you're using that truck for contracting or going away on the weekend. it has to be more than 50% business. then you can deduct a percentage of what you use for business. >> keep a booklet in your car that kind of shows the destinations you've hit, the mileage accrued and then keep those receipts. >> reporter: the irs may decide your business is a hobby, especially if you have other income sources. >> the general test is there any hope of actually making a profit? so it's

this year we at the irs are very concerned with the status of the amt and so-called extenders. if the amt and extenders are not dealt with in a timely fashion, we may have to declay the start of filing season for many millions of taxpayers as we have done in prior years. and i've written to this committee before, that it is imperative that whatever action congress decides to take on amt and extenders, that this action happen by the end of the year which would still be late from an operational perspective, but not longer than that in order to prevent even more widespread disruption of next year's tax filing season. >> thank you, commissioner schulman. i think we will turn to questioning now. we will alternate between sides with five minutes being given to every member. last year you testified to the committee that enforcement and customer service are not an either/or proposition. providing quality taxpayer service, especially during the filing season is important to help taxpayers avoid unintentional errors, inadvertent noncompliance and reduce other burdensome post filing interact

if ir that is any sort of determination as to what they did or didn't do, that will be handled by someone other than our prosecution team. >> last question. >> the name of trayvon martin is at the very beginning. can you shed any more light on the conversation with them? did they express confidence that your process now can bring it to justice? >> i think that after meeting with trayvon's parents that first monday night after we got appointed in this case. bernie was there, john was there. our prosecution team was there. the first thing we did was pray with them. we opened our meeting in prayer. mr. crump and mr. parks were therement there. we did not promise them anything. we specifically talked about, if criminal charges do not come out of this, what can we help you do to make sure your son's death is not in vain. they were very kind and very receptive. mr. delarionda has been in touch with mr. crump and mrs. fulton and mr. martin. they now know that charges have been filed. they are now hearing as we speak that george zimmerman is in custody of law enforcement in our state. we are very

taxpayers have until midnight to either post mark their document or file electronically with the irs. if you're waiting until the last minute, you are in love. several local post offices will stay open late. we have a complete list of which branches those are ar wjla.comt wjla.com. >> dancing's top two couples. this almost earning perfect scores a. capitals may have lost more than a game to the boston bruins. why nicklas backstrom may have been sidelined for at thursday's game. >> in the '70s already >> he scores. >> it was a double dose of bad news for the capitals last night. they lost game 3 with a minute and a half left to go. possible loss to nicklas backstrom in the final minutes. he earned a penalty at the end of the game. that is what could force him to sit out thursday oppose the game for. -- thursday's game 4. >> a clinton tied spokesman said the player's father tripped on the rug at the football game saturday and knocked the $30,000 trophy to the ground. waterford crystal football was shattered the. officials will send the school replacement. >> how bad could you possibly feel

irs. what if you can't pay?> if you can't pay irs can give you an extension if you're unemployed or self employed and income dropped you can get a waiver of penalties if you can't pay tax that's way, you can get a short term extension of up to 120 days if you need more time you can get a online stream line installment agreement if you go to irs.gov as long as you can pay within six years and you owe less than 50,000s oodz file now. and the good thing have you going this year is that there are two days of-to-file. it's the 17th this year. we want to come here to talk to glenn carlson from california society of enrolled agents. what are the mistakes this year? >> well, every year people make common mistakes that can delay refunds, one entering an incorrect social security number. and incorrect filing status, it was what it was on december 31, 2011. >> you can be married then but single back then. >> thank you very much. >> and we're going to be here until 8:00 so come on by online by going to hash tag tax chat. yo

i heard many moons ago that the statement that you see on tax forms that if you do not pay your taxes, the irs has the authority to garnishee wages, that is like paragraph a. paragraph b says it can do that only if you are a federal employee. guest: congress made it clear for the irs to actually do a seizure tangible property, real property, other than a levy, had to get a federal district court. there is a seizure process. united states tax court has jurisdiction over cases called collection due process cases. this was a provision that came in in 1988 which set before the irs can levy upon property, bank account or wages, the first time it tries to do it with respect to any tax, the taxpayer had to be given a hearing, the opportunity to ask for a hearing, before an appeals officer. if he did not like the result of that hearing, were you present it alternatives to a collection action, you could go to the united states tax court. united states tax court has jurisdiction over appeals of collection due process proceedings. as far as levying, the irs has brought collection powers. unlike any priva

i talked with a cpa and she said if the irs does not come after you if you don't take this worksheet,be you could use this money for charity or support different candidates and that kind of thing. i don't know what you are thinking about this. well, my office does not do tax policy. we work on tax administration, how the irs treats taxpayers and how the law makes it difficult for the irs to treat taxpayers well, because it is so complicated. the issue that you raised is really about should you pay a higher or lower rate on different kinds of income, like dividends or capital gains versus wages. that is very much a hot issue if you read the news today. i think the opportunities coming forward as you are in an election year and things like that where people will be talking about that very issue. i would say it those preferential rates cause additional complexity in the code. you just described having to go through worksheet. each one of those things increases the likelihood that someone, would make the mistakes either for the taxpayer or against the taxpayer. host: neil olsen is the irs

if you're incorporated that it does not have to be reported to irs. you're not incorporated it does have to be reported. so, one suggestion for additional information reporting is to extend that to contractors who are incorporated. payments for services by owners are around the real estate is another area where we've recommended increase reporting and then there are also cases where reporting is done now that additional information could be provided. one example was reporting on mortgages. currently the 1098 forms the report mortgage information do not include the address of the mortgage property and that creates problems for the irs in sorting out suspicious returns, correct returns because they are not easy to tell how many properties somebody owns. so there are both sorts of opportunities there. one other point i would mention is there's been quite a bit of discussion about return on investment. this is something in their recent work we highlighted the importance of doing more estimates of return on investment both for the proposed initiatives, whic

the irs never initiates contact with taxpayers via email, if you get an email from someone claiming to be the irs, do not open the message, any attachments or click on links. pay attention to web addresses, the official website is www.irs .gov. don't be misled by similar looking sites claiming to be the irs ending in.com, net or.org. watchout for unsolicited offers to prepare and split a refund. tj winnick, abc2 news, new york. >>> if you do get a suspicious looking email, the irs wants to see it. forward it unopened to fishing@irs .gov. find tips at abc2news.com. click on the money tab and you will find information about tax breaks, you may not have heard of and a warning about why you need to be careful on the roads, tuesday. >>> hundreds of thousands of homeowners will use tax refunds to file for bankruptcy according to report in u.s.a. today. the number of families doing that has increased since 2005 when the cost soared following a change if law. familys have been forced to delay filing until they can afford the pay the bankruptcy fees. >>> good looking spring day. we like the sun

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if you qualify, the irs allows credits for college tuition, home office, called out there and and job searches. if then you look at the standard deduction. if the total is better, then itemizes. >> the ntsb investigating the safety of montgomery county's ride on bus lead, looking to see if the buses need to be recalled due to manufacturing defects. if in the past three years there been six fires on buses which were all manufactured by champion. >> it might take longer for wal- mart to move into the district. it is not going to open the first door in d.c. until the end of 2013. this comes after repeated resistance from activists and opponents. wal-mart officials say they're using extra time to do more community research. the first wal-mart will likely break ground this spring in northwest. >> speaking of breaking ground we will have more on the national mall. on abc 7 news, an alarming new research linking on disney to obesity. >> >> next "anderson" -- captioned by the national captioning institute --www.ncicap.org-- >> a new study suggests that obesity during pregnancy may increase th

irs? >> not one of my favorites, but if you need it and you know you are going to pay this back, the irs givesou a 60-day window to take money from an ira, if you put it back within 60 days, you can borrow it, take it, pay the liability and put the money back. no taxes, no penalty for early withdrawal? >> jamie: interesting. >> another source. a lot of people have done this. but scrapping old gold, you have the stuff laying around. gold is a very high price rights now -- scrapit, pay the liability, if you want, you say, call the irs, pay $10 a month, if you get on a payment plan, you don't get charged the penalty. >> great point. this is form 9465. it's an installment plan. you go to the irs and say, i would like to pay my tax, difile the return and i filed a valid extension. i want to pay my taxes. you can cut the penalties way down. get yourself on a payment. the interest rate is only 3%. the not payment penalty is cut down to a quarter of 1% a month. it's a gift. pay your taxes. no stress. don't panic? >> jamie: we like the stress-free tax payment. thank you. good ideas. it will be on our w

irs stopped that? i get it...guys weekend. yeah! ifooking for a place to get together, you came to the right place. because here at hotels.com, we're only about hotels. yeah! yeah! noooo. yeah! finding you the perfect place is all we do. welcome to hotels.com battle speech right? may i? capital one is issuing a venture double miles challenge. show us how much you spent last year and we'll give you 2 miles for every dollar spent on your travel reward card. up to 100,000 miles! hawaii, here we come. claim your miles at capitalone.com today! what's in your wallet? can you play games on that? not on the runway. no. >>> we now return to "cnn presents" with your hosts tonight, randi kaye and drew griffin. >> law enforcement says a massive scheme to defraud the government and steal refunds from taxpayers could be derailed if the irs stepped up with better enforcement. >> but that isn't happening as we found in one of the worst-hit areas in the country. my investigation into refund robbery continues. [ police radio ] >> reporter: it's just ano

if you haven't filed yet, your best option is to buy a box of chocolates, call the irs to explain whytension to buy yourself more time. >> file an extension. >> yes. that was doggone easy. >> yes, it was. >> too easy. too easy a question. >> who can file for an extension, jean? >> anyone can file for an extension. but you have to remember it's an extension to file. it's not an extension to pay. if you owe the irs money, you have to figure out what it is based on last year and write them a check. otherwise they're going to hit you with some nasty penalties. >> do you have to have a reason that you're filing for an extension? >> no, you don't. you can get a six-month extension just for asking for it. irs form 4868. all the forms are at irs.gov. >> tell jean she's never looked more beautiful. i don't know what's going on. >> thank you so much. >> who's her doctor? >> i got a haircut. >> yeah, right. i got a haircut. yeah, right. you are from the outer banks of north carolina, right? true or false. if your tax return is wrong or incomplete the irs will e-mail you for more information. >>

says a massive scheme to defraud the government and steal refunds from taxpayers could be derailed if the irsh better enforcement. >> but that isn't happening as we found in one of the worst-hit areas in the country. my investigation into refund robbery continues. [ police radio ] >> reporter: it's just another night on the streets in tampa, florida, where police say tax refund fraud is the new crack cocaine for criminals. >> that's over 2,000 in cash. this lady doesn't have a job. she's unemployed. >> reporter: but inside her suv it looks like she went on a shopping spree. and police find this in her purse. someone else's social security number and an online tax filing website. a red flag for fraud. >> you got the information from somebody, their social, their e-mail address, dollar amount they're going to put in for with the federal government. they get a return on them. >> reporter: and anyone can learn the crime. this handwritten guide confiscated by police spells out how to get away with it. something this police informant and convicted felon we'll call cheryl knows all too well. she say

if you are still crunching the mums be careful. the irsfolks make mistakes tonight and file incorrect returns. there is still help if you haven't filed. the irs will give you more time. six months, in fact to complete your return. but not more time to pay. to get an extension you are going to get a copy of the irs form 4868 which you can find online and at irs.gov. if your tax information hasn't changed much since last year you can use your 2010 tax return to estimate what you owe for this year. and you will need to include that payment for that estimated amount when you file form 4868. you can file the extension online or print out a copy of the form and mail it in but it all needs to be done by midnight to avoid late filing penalties. once you turned in your extension request you have until october 15 to file your return. take a breath. >>> if sending that tax form to the irs has your wallets empty a new walmart gift card text message may sound enticing. but don't fall for it. we have been hearing from viewers that a new gift card text m

and so, i don't know if that's anything that irs has looked at doing so that when you call in, that you once you make that contact, that you then have, all right, here's your case manager that you should be dealing with so you're not starting over and kind of having to reeducate every time you call in. is that something considered? >> so it is considered. i don't know whether it would work here or not, to be honest with you. generally and i think that taxpayer advocate and i may disagree on this, we don't necessarily have the resources to say this is your person. what we ought to be doing is to ensure whoever does get on the phone with you has all the information in front of them. that's what we try to do. >> is that done through the case files electronically, whoever helps you them documenting? >> that's our attempt. our attempt is to have -- and remember, we're talking about this is a microcosm confident way we're doing business on the phone generally where our systems don't permit a single person. we can't do a single number to a single person at this point. we are looking at it. in

if you combine e filing and direct deposit, the irs can typically issue the refund in half the time than if you file conventionally and in as little as 10 days. t.j. winick reporting, new york. >> accuracy and speed aren't enough, consider the environment. go the go green. >>> a maryland man ties osama bin laden on the fbi's most wanted list. his alleged crimes on abc2 news at 6:00 which starts right now. >>> it looks like conditions are a qarng like a tornado warning or hurricane warning. >> no. it's not tornadoes or hurricanes threatening maryland. it's wildfires. >> this is about how much love that you have that you want to give. >> more than 2,000 people are waiting for an organ in maryland. how you can give the gift of life. >>> a big announcement from the maryland lottery. who the big winners are in that huge megamillions jackpot. >>> strong winds for your drive home this evening. you're looking at a live picture at i-695 and harford road. the high winds coupled with dry

you've got to have all of those documents, because they do go to the irs, and if it's missing from yourtch up the 1099s and the w-2s and all the other recording against what you're showing on your form, and that will also bounce it right back to you with problems. >> of course if you're getting a refund, a lot of people want it quickly. so they give their, you know, check, deposit number, et cetera. then if you don't get it right, you're not going to see that money. >> yeah. if you have a problem delineating what the routing number of the bank is versus your account number, stop into your bank and have them put a line through the two sets of numbers so that you know which is which so you can send it on to the irs properly. otherwise, you'll be waiting a long time before you see that refund, if those numbers are incorrect, but i do recommend that do you that direct deposit into the bank. >> these all seem like silly mistakes but people make them all the tile. it's important to re-emphasize. last, not least, don't forget to sign and date that return, because they want to know it's you, th

if you're $50,000, you have to be $50,000 behind in your taxes the irs can do this. >> first of all were in serious a rearage on child support, okay, your passport can be suspend or revoked and the state department can refuse to issue a passport. that leads to the next bit of analysis how would you compare theoretically child support and taxes. >> sure. >> the law is you have to be $50,000 in arrears and the irs has to have already levied against your property or filed a lien on your property. moreover there are two exceptions that are critical. if you are fighting it in court or if you have some payment plan in place, the law does not apply. jenna: the question becomes, jennifer, when it comes to enforcement because it sound really, important disclaimers if there is levy against your house or something else is going on you should be able to leave the country but thinking that will all be organized when you get to leave the country. there could be some doubt. >> yes. and what happens when they make this determination when you're trying to come back into your country? the problem with t

irs in a back-and-forth. they could have held themselves out, filed a 990. if we would have seen an issue, we would have engaged, but otherwise we wouldn't. the basic rules around 501c 4 organizations are that they need to be primarily engaged in promoting the common good and general welfare of their community. they can be involved in political and campaign activity, but it can't be their primary purpose. when people apply for 501c 4 status, what we do is engage them in a number of questions about making sure that we understand their primary purpose around this and other sorts of engagement. so what's been happening has been the normal back-and-forth that happens with the irs. none of the alleged taxpayers -- obviously i can't talk about individual taxpayers and i'm not involved in these, are in an examination process. they're in an application process which they moved in to voluntarily. and so there's absolutely no targeting. this is the kind of back-and-forth that happens when people apply for 501c 4 status. >> finally, is it fair to say there's been no chang

>> if you can't get all your paperwork together, you file an extension by filing form 4868. you can get that on the irste at www.irs.gov. you can do it electronically, too. if you go onto our website, you can find electronic filing on there. irs e-file and free file. you can file an extension for free through irs free file. >> what does that give you in terms of putting off payment, or does it? >> very good point, jim. an extension of time is an extension of time to file. it's an extension of time to get your paperwork in. it's not an extension of time to pay. the payment is due by april 17th. but the important thing is the penalty for filing late is actually greater than the penalty for paying late. so it's important to file. if you can't file the return, file the extension. if you get the extension, you've got until october 15th to file the tax return. >> what if people can't pay the taxes they owe at the same time. what do they do? >> if you go to our website, we have a lot of options for people who are making payments. you can pay with a credit card. if you don't have the money to pay and you don't

that is what i've tried to do with me and my senior team at the irs. if you look back at the irs, there is a lot of press coverage of the irs in the mid- 1990s, and it was not all positive. since that time, there has been a major reorganization of the irs, and we have had a sustained arc of progress, very different from the beginning in the 1990's. if you look in the rearview mirror, there was a time the irs was thought of as an organization mired in the past, one that had not kept pace with advances in technology, one that was slow to adapt and embrace emerging best practices in things like analytics and compliance, and also in customer service, and one that was slow to recognize any vaulting taxpayer base, including increasing the fact that many of the taxpayers were operating in a much more global economy. but i would argue that standing before you today, standing on the shoulders of predecessors and others who moved the institution forward, we have made a lot of lasting progress at the irs that will serve the nation and the tax system well for the yea

if you fort got, don't worry. the irs never checks. >> jennifer love hewitt. >> so -- >> seriously, that looks like a horror movie blown up. >> chef georgia pellegrini. >> kkk. kim kardashian kares. >> and jason mraz. >> jimmy: hi, i'm jimmy kimmel with a word about the nokia lumia 900, the super fast smart phone with the scratch resistant design and big screen that's visible even in bright sunlight. guillermo, you know what a flash mob is, right? >> a little bit. >> jimmy: a little bit. well, this is from times square. they had a flash mob doing a special light show set to an exclusive remix of the nicki minaj song "star ships." check this out. ♪ star ships were meant to fly ♪ hands up and touch the sky ♪ can't stop ♪ because we're so high ♪ let's do this one more time ♪ star ships were meant to fly ♪ hands up and touch the sky >> jimmy: that's a flash mob. pretty cool, right gare -- where did guillermo go? guillermo? >> i love flash mob! i'm going to do one right now! woo hoo! flash mob on hollywood boulevard. come on,

you have to get a tax filing deadline remember april 17th the deadline holds even if you go extension to talk on the irsee whether you qualify under which threshold levels. $5,000 of under 56,000 if you're over 50 in the high for a trend that aids by the end of the year. >>> so let's just say we can make the deadline passes say that's. solaces say. the irs knows that there are a few people out there and can't quite make it and allow you to file an extension yids six extra months when you file a form 4868 yet to file the extension medical 17th otherwise will face stiff penalty more importantly the irs says it will give you time to file but not giving you extra time to pay u.s. estimate your tax liability for 2011 pay what you think you owe when you file the extension. this is really important because the penalties can be so huge willie of to a 47% of view of a cell for more late filing tips for people in your family you filed already know that. if the friends and family help but money watch that,. >>> i have. did would of course you have. did with an honest. february 1st i have made divi- divi to in my m