Tax Day is April 17 this year

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CNNMoney.comBy Blake Ellis | CNNMoney.com – 4 hours ago

Tax Day is drawing near, but you still have a little time left to get your return filed to Uncle Sam.

While the tax filing deadline typically falls on April 15, this year taxes are due Tuesday, April 17.

The extra break was granted because April 15 is a Sunday this year, and Monday is Emancipation Day, a holiday in Washington D.C. that celebrates the freeing of slaves in the district. Under the tax code, filing deadlines can’t fall on Saturdays, Sundays or holidays.

Last year, Tax Day was extended until April 18, also thanks to Emancipation Day.

The IRS said earlier this year that it expects to receive more than 144 million individual tax returns this season, with the majority projected to be submitted by the new April 17 deadline. As of the end of March, the IRS had already received 91 million returns and had doled out refunds to 75 million taxpayers — with refunds averaging $2,286.

If you still can’t get your taxes completed on time, you can always file for a six-month extension by submitting Form 4868. Or you can even do it on your smartphone by using Taxsoftware.com’s Form 4868 Extension app.

If you don’t owe any taxes, then you won’t be hit with late penalties for failing to file on time. Just be absolutely certain that you don’t owe the IRS money — if your calculations are wrong, the IRS will come after you. If you do end up owing taxes, the penalty for filing late is 5% of the amount owed for each month that you fail to file, up to a maximum of 25% (which would be reached after five months).

Also, when rushing to meet the tax deadline be careful about how fast you drive to the post office — or to the nearest tax preparer. Your odds of getting into a fatal car crash jump by 6% on tax filing day, according to a study published in the Journal of the American Medical Association.

Paying the tax piper with plastic

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By Jenny C. McCune• Bankrate.com

When it comes to taking a cruise, your spending doesn’t end when you’ve booked the trip. Lots of cruise-related expenses have the potential to bust your budget, from the flight to your embarkation point to drinks on the cruise to shore excursions. So-called add-on expenses can equal or exceed the cost of your cruise if you’re not careful.

“The trend is for some cruise lines to offer relatively low prices to get people on the ship and then hit them with cash fees for little expenses here and there that after a week can really add up,” says Eileen Entin, owner of Diamond Cruise and Travel in Hightstown, N.J.

Payers of federal quarterly estimated taxes now can charge those four extra amounts throughout the year, not just in April. Then there are the state taxes that can be put on plastic, too.

Why? The process is relatively simple. First, decide which card has room for your tax debt. Then visit either company’s Web site or call its toll-free number. Five or six steps later, your payment is made.

In addition to these two services, most tax software programs allow you to pay electronically, and that includes by credit card. The convenience fee is still charged in these cases, but it goes to the software vendor, who then transmits it to the card processor. The software companies don’t charge extra for e-filers who say “charge it.”

Taxes: just another purchase
Another factor boosting tax charges: Americans view these transactions as just another purchase.

Taxpayers pay the IRS by credit card for the same reasons they regularly pay with plastic. It’s convenient, it allows them to put off paying a bill for a month, and, in many instances, it’s a way to rack up frequent-flier miles or other bonus points.

Jordan Goodman, author of “Everyone’s Money Book,” once paid a $28,000 tax bill with his American Express card. In the process, he accrued a lot of membership award points.

But, says Goodman, using credit cards to pay Uncle Sam isn’t right for everyone. You have to balance the convenience fee you’re charged when you make your tax payment. Will the amount of frequent-flier miles outweigh that fee?

“You have to do your arithmetic before committing to this,” agrees Donna LeValley, a tax attorney who has served as contributing editor of the popular J.K. Lasser “Your Income Tax Guide” series.

Increasing interest
For the credit card option to make sense, a taxpayer also must pay the credit card company promptly to avoid account interest.

Some credit cards that offer frequent-flier miles or other bonuses also charge a higher interest rate, so you could end up paying thousands of dollars in interest if you elect to pay only the minimum due each month. Bankrate.com tracks the most current annual percentage rates for air-mile cards.

You’re not off the hook either if you have a low-interest rate card or you shift your balance over to one. That’s because the credit card companies will quickly charge you the usual higher market rate even if you are one day late, Goodman says.

If you must pay taxes by credit, call your credit card company and ask them to issue a check to pay the IRS, your state, or both advises Eva Rosenberg, the Web’s Tax Mama. That way, you won’t pay the convenience fee, but will earn your frequent-flier miles or bonus points.

This method also is available through use of convenience checks that many card issuers periodically include in billing statements. However, these checks generally come with their own fees. And while many cards offer low introductory rates to encourage use of the checks, the ultimate interest could end up higher than what’s charged for regular plastic purchases. Interest rate information may not be listed on the check; check your card holder agreement or call the issuer.

These costs could, depending on what you owe Uncle Sam, match or outpace what you would have paid by simply charging your tax bill.

Other payment plans
Thinking twice about pulling out the plastic to pay your tax bill? There are other options for people who don’t have the cash on hand:

  • Work out an installment agreement with the IRS. According to Edward Kaplan, an attorney with Green Radovsky Malone & Share in San Francisco, the IRS interest rate on tax deficiencies generally is much less than that charged by your usual credit card issuer. The IRS adjusts its rates quarterly based on the federal short-term rate, meaning interest for underpayments will stay at 5 percent for the quarter starting April 1.
  • Get a personal loan from your bank or a credit union.
  • Establish and draw on a home equity line. Interest here may be deductible on next year’s tax return.
  • Avoid credit card vendor fees by using the Electronic Federal Tax Payment System. Businesses have been using EFTPS for years to directly transfer various taxes to the IRS. Now the agency is encouraging individuals to use the system for annual returns and estimated tax payments. Of course, this method requires you have the funds in your account to pay the IRS. You also need to enroll and get a PIN number, so don’t wait until the last minute. And check with your bank to see if it charges a transfer fee.

Again, each of these payment methods involves costs in addition to your tax bill. Only you can be sure whether one of these options, or paying with plastic, makes sense come April 15.

If you can pay the bill off within the grace period and the fees don’t outweigh the convenience and card perks, it could be the right move for you. But if you’re paying by credit card out of desperation because you don’t have the cash on hand, explore other payment avenues first.

One thing is clear regardless of which payment vehicle you choose. They all go down the same road to the ultimate destination: the tax collector.

Jenny C. McCune is a contributing editor based in Montana.

Congress inaction risks 2013 tax “disaster”: IRS chief

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WASHINGTON (Reuters) – The commissioner of the U.S. tax-collecting Internal Revenue Service warned on Thursday of “a real disaster” for taxpayers next year should Congress miss a December 31 deadline to decide on billions in major tax provisions.

Congress is expected to wait until after Election Day, November 6, to take up whether to extend the individual income tax cuts passed under former president George W. Bush that expire at the end of 2012.

Most Democrats and President Barack Obama want to extend all but the top two tax brackets, allowing taxes to increase for high-income earners. Republicans want to extend the lower rates for all income groups.

A 2010 “lame duck” session deadlock to extend the Bush tax cuts delayed the start of the tax filing season in early 2011.

Allowing the pending tax decisions to lapse into 2013 will cause confusion for taxpayers, said Douglas Shulman, IRS commissioner, speaking at the National Press Club in Washington.

“We’re going to have real risk in the system” if Congress delays, Shulman said.

“You could have a real disaster in the filing season where there’s total confusion,” especially for the alternative minimum tax “patch,” he said.

The alternative minimum tax is a parallel tax system that applies to higher-income taxpayers. A legislative fix to index it for inflation must be approved before year’s end to prevent the tax from hitting taxpayers in lower income brackets.

In the absence of congressional action by January 1, the IRS might be forced to delay the tax-filing season, which begins promptly with the new year, Shulman said.

As it is, Congress faces a huge workload for the two-month lame-duck period after the elections when about $650 billion of tax and spending provisions expire.

Shulman, appointed by President George W. Bush and now in the last year of a five-year term, defended IRS’s regulation of 501(c)4 groups, including Tea Party organizations, which have received IRS letters asking questions about their political work.

For any non-profit groups that raise red flags, the IRS will “go out and do an audit and gather more facts,” Shulman said in response to a question about IRS investigations into the non-profit groups.

Shulman also touted stronger IRS international enforcement efforts for businesses and individuals.

The agency has hired private-sector experts to better catch businesses that aggressively shift assets and profits offshore.

The new enforcers will help the IRS keep pace with corporations’ evolving tax strategies, Shulman said.

Tax professionals have doubted whether the IRS has the muscle to enforce these “transfer pricing” disputes.

Transfer pricing is a booming field of global tax law. It involves multinational corporations moving goods, services and assets from one subsidiary to another in different countries and how they account for these “transfers.”

(Reporting by Patrick Temple-West; Editing by Howard Goller and Philip Barbara)

Facts About IRS Payment Plans

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When you fall behind on your income tax payments, the IRS may let you set up a payment plan, called an installment agreement, to get you back on track. It is up to you, however, to take that first step and make a request for the installment agreement, which you can do by filing Form 9465. You can file the form with your tax return, online, or even over the phone, in some cases. But before you make the request, you’ll want to gather some facts about IRS payment plans.
10-year collection period

By law, the IRS has only 10 years from the date your income tax is assessed to collect it from you. For example, if you reported an outstanding tax bill on your 2010 tax return on April 15, 2011, in most cases the IRS has until April 15, 2021 to collect the tax from you. Therefore, the IRS will require monthly payment amounts that are large enough to pay off the entire tax bill by the end of the 10-year period. If you ignore your tax bill entirely, the IRS can secure collection of the tax you owe through wage garnishments or by placing liens on your personal property.

Guaranteed acceptance of your installment agreement

If your outstanding tax balance is $10,000 or less at the time you request an installment agreement, IRS acceptance of your proposed payment plan may be guaranteed if a number of requirements are met.

In order to qualify, in the prior five tax years, you must have filed all income tax returns on time, paid the income tax due, and not requested an installment agreement. Moreover, the IRS must conclude from the information you provide that you are unable to pay the tax in full. You must also agree to comply with all tax laws for the duration of the installment agreement and you must agree to pay your tax debt within three years.

Fee for Installment Agreement

The IRS does charge a user fee for setting up or reinstating an installment agreement.

Interest and penalties will still apply

Entering into an installment agreement can provide you with peace of mind that the IRS will not pursue any of the harshest collection methods at its disposal, but interest and penalty charges will continue to accrue on your unpaid tax balances. This is because the payment of your outstanding tax balance is still late even though you are making attempts to repay the bill through a monthly payment plan. Because of the penalty and interest charges, it’s important to pay as much as possible each month; otherwise, it will take you longer to pay off the debt in full.

If you owe more than $50,000 in taxes

If the amount of tax you owe at the time you request an installment agreement exceeds $50,000, you’ll need to provide the IRS with additional information about your personal finances. In this situation, you must request the payment plan on Form 9465-FS and attach a Collection Information Statement on Form 433-F. The IRS will then perform a more thorough review of your assets and liabilities to determine whether you qualify for an installment agreement.

What If You Can’t Pay Your Taxes?

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CCH Examines Options Taxpayers Need to Know

Press Release: CCH, a Wolters Kluwer business – 22 hours ago

 
 

RIVERWOODS, Ill., April 2, 2012 /PRNewswire/ — With the end of tax season just around the corner, millions may be cringing over income tax bills they simply can’t afford to pay. Ignoring payment is not an option, but there are alternatives that taxpayers facing this situation should know about, according to CCH, a Wolters Kluwer business and a leading global provider of tax, accounting and audit information, software and services (CCHGroup.com).

“If you can’t pay what you owe all at once, you should still file your tax return and make payment arrangements with the IRS,” said CCH Principal Federal Tax Analyst Mark Luscombe, JD, LLM, CPA. “If you don’t file because you can’t pay, you’re immediately facing a failure-to-file penalty as well as interest, additional costs and potentially a tax lien or levy down the road.”

Last year, the IRS issued new rules to help soften the blow for taxpayers who can’t afford to pay their taxes when owed, including increasing the threshold at which the IRS files a tax lien, as well as expanding the installment and offers in compromise programs to allow more taxpayers to qualify. Despite the changes, however, taxpayers can still face a host of issues for not paying taxes when owed and need to understand the options available to address their tax debt. The IRS also followed-up this year with some expanded penalty relief.

Newly Expanded Fresh Start Initiative

To better help those who may be struggling to pay their taxes, the IRS has expanded its “Fresh Start” initiative. To take advantage of the initiative, taxpayers may fill out a new Form 1127A to request the 2011 penalty relief if they are in one of these two categories:

  • Wage earners who have been unemployed at least 30 consecutive days during 2011 or in 2012 up to this year’s April 17 tax deadline; or
  • Self-employed individuals who experienced a 25-percent or greater reduction in business income in 2011 due to the economy.

To qualify for this penalty relief, the taxpayer’s adjusted gross income must not exceed $200,000 if married filing jointly or $100,000 if filing status is single, married filing separately, head of household or qualifying widower. However, a taxpayer’s 2011 balance due can not exceed $50,000. The penalty relief only extends to October 15, 2012, and interest continues to accrue during that period.

Penalties for Ignoring Tax Deadlines  

If a taxpayer does not file a return and pay the taxes owed when due, the IRS can take several steps, including:

  • Failure-to-file penalty – The taxpayer faces a penalty of 5 percent of the tax due for every month or any fraction of a month that the return is overdue, capped at 25 percent;
  • Substitute tax return – The IRS can file a substitute tax return for the taxpayer based on information it has from other sources; and
  • Levies and liens – The IRS may start a collection process that can include a tax levy or tax lien against the taxpayer’s property, bank account or wages. Tax liens can impact credit ratings and make it difficult to buy and sell property and even get a job.

Three other options available to taxpayers include:

1. Borrow, liquidate assets or charge it. 

Taxpayers who owe and can’t pay their entire tax bill when it’s due, but can pay the full amount within 120 days, can ask the IRS for a short-term administrative extension.

Those who need more time have just a few options: They can try to secure a bank loan, such as a home equity loan, cash out a retirement account or use their credit card. 

While going into debt to pay off a debt may not seem the best option, the interest rate and fees assessed by a bank or credit card issuer may be lower than the interest and penalties assessed by the IRS. Credit card payments must be made electronically, through personal tax software, a paid tax preparer or through credit card service payment providers.

2. Enter into an installment agreement with the IRS. 

The IRS is required to accept installment payments if a taxpayer has a good filing and payment record over the past five years, the amount owed is not more than $10,000 and it can be paid off in full within three years. 

Small businesses may enter into “streamlined” installment agreements if their debt is below $25,000 and they agree to pay it off in 24 months. This option is available to small businesses that file as an individual or as a business.

3. Reach an offer in compromise with the IRS. 

In some instances, the IRS may accept less than the full amount due. This typically occurs if the taxpayer can show that the full tax debt could never be collected or they have a dispute with the IRS as to how much is owed, but neither party wants to enter into a legal battle to resolve the issue.

Under the new rules issued in February, more people may be eligible to participate in offers in compromise. Taxpayers with incomes of up to $100,000 (up from $50,000) and who have a tax debt below $50,000 (up from $25,000) can now request an offer in compromise from the IRS.

Red flags that tempt the tax auditor

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By Kay Bell • Bankrate.com
 

It is the most dreaded letter a taxpayer can receive.

Dear Taxpayer,
Some of the information that you provided to us does not agree with the information we received from other sources.
– The Internal Revenue Service

You’ve just joined an elite club, one whose initiation ritual is an IRS audit. Unfortunately, you can’t refuse membership — and the dues could be astronomical.

 When the IRS Restructuring and Reform Act was enacted in 1998, lawmakers ordered the agency to focus more on taxpayer rights instead of collection activities. Not surprisingly, the number of audits — or examinations, as the agency prefers to call them — dropped dramatically.

The first year of the kinder, gentler IRS, about 1 in 79 tax returns was audited. By 2003, it was even easier for tax scofflaws; that year, according to IRS data, only 1 in 150 individual taxpayers was audited.

But the tax times, they are a-changing.

More audit attention

IRS Commissioner Doug Shulman says he wants to balance his agency’s enforcement and service responsibilities. To that end, he has announced programs designed to take into consideration the financial struggles that many taxpayers are encountering in today’s economy.

But balance doesn’t mean taxpayers are off the hook. Facing pressure from a Congress dealing with a growing federal deficit, the IRS has made it clear it takes the enforcement portion of its job seriously.

Audits have been increasing, although the pace was slow in fiscal year 2010. According to the IRS’ 2010 annual data book (the latest edition available), individual taxpayer audits last year were up slightly, just more than 1 percent. Of that number, says the IRS, individual income tax returns reporting higher adjusted gross incomes were more likely to be examined.

But the rich aren’t the only targets. Recent tax law changes, particularly when it comes to confusing tax breaks such as the first-time homebuyer credit, always prompt closer looks at returns. And if you’re a small-business person, either as a partnership or a Schedule C filer reporting self-employment income on your personal tax return, make sure you take extra care with your returns.

And those with lower incomes that make them eligible for the complicated earned income tax credit also face added scrutiny. Nearly 30 percent of audited returns claimed this tax credit.

What’s the DIF?

When it comes to avoiding prying IRS eyes, it’s best to be just one of the crowd. “Don’t draw any more attention to your return than you need to,” says Robert G. Nath, author of “The Unofficial Guide to Dealing with the IRS.” “Simple, plain-vanilla returns are fairly safe.”

The IRS says there are several ways a return can be selected for audit and the first is via the agency’s computer-scoring system known as Discriminant Information Function, or DIF. The IRS evaluates tax returns based on IRS formulas, and DIF is based on deductions, credits and exemptions with norms for taxpayers in each of the income brackets.

The actual scoring formula to determine which tax returns are most likely to be in error is a closely guarded secret. But Nath, a tax attorney in the Washington, D.C., area, says it’s no mystery the system is designed to screen for returns that could put more money in the government Treasury.

How do your deductions compare?

Tax experts believe one discriminant information function component looks at average deduction amounts. This allows IRS examiners to spot inconsistencies, such as a high mortgage interest deduction and low income.

Tax specialists at CCH Inc. examined 2009 return statistics, the latest complete data, and came up with the following itemized deduction averages. These are for illustrative purposes only. CCH experts note that the IRS takes a dim view of taxpayers who base their claimed deductions on these figures. The numbers can be useful, however, in giving you a general idea as to whether certain deductions on your return might seem out of line.

Check average deduction amounts
Income range Medical expenses Taxes paid Interest paid Charitable contributions
$15,000-$30,000 $7,783 $3,184 $8,434 $2,048
$30,000-$50,000 $7,028 $3,943 $8,699 $2,274
$50,000-$100,000 $7,269 $6,247 $10,133 $2,775
$100,000-$200,000 $9,269 $11,069 $13,456 $3,888
$200,000-$250,000 $21,599 $18,524 $17,572 $5,947
More than $250,000 $38,149 $48,317 $25,527 $18,488

Allison Einbinder, owner of Dollars & Sense, a tax and accounting firm in Oakland, Calif., recommends that all filers review the differential comparisons. How you stack up against a national standard, she says, will give you an idea of whether the IRS might take a closer look at your return.

So what is likely to trigger a discriminant information function red flag?

  • Higher incomes.
  • Income other than basic wages; for example, contract payments.
  • Unreported income, such as investment returns.
  • Home-based businesses, especially when in addition to salary income, and home-office deductions.
  • Noncash charitable deductions.
  • Large business meal and entertainment deductions.
  • Excessive business auto usage.
  • Losses from an activity that could be viewed as a hobby rather than a business.
  • Large casualty losses.

Returns claiming the earned income tax credit, designed as a tax break for lower-income wage earners, also catch IRS eyes. The credit’s complexity often results in legitimate mistakes on returns. Some filers, however, have been caught making false claims to increase the payment the credit provides.

Schedule C filers who report a business loss also are likely to face more questions from the IRS. The agency wants to be sure that it was indeed the economy, and not an effort to trim taxes, that produced the bad business results.

Don’t cheat yourself

But don’t let fear of a potential audit discourage you from filing for tax credits or taking legitimate tax deductions.

Although some tax return actions are likely to flag your return, Nath says that doesn’t necessarily mean you’ll be audited.

Even if your return is questioned, it’s not a foregone conclusion that you’ll end up owing the IRS. As long as your deductions and expenses are legitimate and you have documentation, Nath says, they will be allowed.

The groundwork you put into preparing your return will pay off in an audit situation. “Be confident in what you entered,” says Einbinder. “That’s easy when you have good records to support your tax return entries.”

And even if an audit doesn’t go your way, don’t despair. “You have rights to contest audits,” Nath says, “at every level of the process.”  

Beware These 5 Terrible Tax Surprises

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By Kay Bell | Bankrate.com – 22 hours ago
 
You’ve always followed the sage advice of the late singer-songwriter Jim Croce: You don’t tug on Superman’s cape, you don’t spit into the wind, and you don’t try to pull a fast one on the Internal Revenue Service.OK, maybe that last one wasn’t one of Jim’s lyrics, but the sentiment — know the consequences before you act — still applies.Unfortunately, that’s not always easy to do when it comes to Uncle Sam’s tax collectors.

The tax law is complex and difficult for even experts to negotiate. Just when you think you’ve followed all the rules and researched all the angles, a tax regulation blindsides you.

Here are five terrible tax surprises that you might encounter during tax season and how to deal with the consequences.

Unemployment benefits

Yes, it’s true. Under tax law, unemployment is considered wage income, and the IRS wants a cut of it.

Now that you’re over the shock and anger, what can you do? When you apply for unemployment benefits, consider having federal income taxes withheld. This process is similar to regular payroll withholding. In this case, the form you fill out is the federal W-4V, Voluntary Withholding Request, or a similar IRS-acceptable document that the paying agency has created. This way, taxes will be withheld at the rate of 10 percent of each unemployment payment.

If you feel like you just can’t surrender a chunk of each unemployment check to withholding, you should look into paying estimated taxes. This will help you avoid owing a large lump-sum tax bill when you file.

Alimony received

You survived the divorce. Now you have the IRS to deal with if you’re getting alimony.

Ending a marriage is never a happy event. But at least you got a good settlement, and those regular checks from your (insert your own description here) ex-spouse are completely warranted. They also are completely taxable.

Alimony, separate maintenance payments and similar recompense from your former spouse are taxable to you in the year you receive them. Child support money, however, is not taxable. If your divorce decree calls for alimony and child support and specifies amounts for each, you only owe the IRS for the alimony payments. To avoid a big bill in April, make your IRS payments on alimony and other untaxed income via estimated tax filings.

The one good tax surprise here is for the ex who’s paying spousal support. Those check amounts are tax deductible.

Forgiven debt

“Forgive but collect” is the IRS motto when it comes to canceled debt.

Getting your credit card bill cut from $8,000 to $4,000 certainly helped your personal bottom line. But it also could be a boon to the U.S. Treasury. Why? The tax law generally considers the amount you get any creditor to write off as earned, and therefore taxable, income to you. Expect the accommodating debtholder to send you (and the IRS) a Form 1099-C or similar statement detailing your discharge of indebtedness as miscellaneous income.

Not every debt settlement, however, has to pad Uncle Sam’s pocket. Under the Mortgage Debt Relief Act that became law in 2007, some homeowners who are granted forgiveness of mortgage debt won’t have to pay taxes on that amount.

There are some restrictions. The forgiven debt amount is limited to up to $2 million, or $1 million for a married person filing a separate tax return. The tax relief only applies to mortgage debt discharged by a lender between 2007 and 2012. And the forgiven loan must have been taken out to buy or build a primary residence, not a second or vacation home.

Prize winnings

Think you’re pretty lucky because you won $1,000 in a radio contest? Uncle Sam is even luckier. He’s due part of your winnings.

Prize winnings are included in the long list of “other” income that tax law says is taxable. And it’s not just limited to cash awards. You have to pay taxes on the fair market value of any property you win.

Be careful when reporting the amount of a noncash prize. In most cases, companies and groups that award prizes, cash and property, will send you a 1099 form declaring the value of what you won. If your tax return reports substantially less than what the giver claims, your underreporting could mean a long, hard look from an IRS auditor.

And don’t forget about gambling proceeds. They’re taxable, too, but at least you get the chance to reduce the tax bite here by subtracting any betting losses from your winnings.

Some Social Security benefits

You spent the last 40 years fattening the U.S. Treasury thanks to those dang Social Security taxes that came out of every paycheck. Now you’re retiring, and it’s time to get your tax money back, free and clear, right?

Well, maybe. Maybe not.

Generally, if Social Security benefits are your only income, your benefits are not taxable. But if you collect Social Security plus other income, as much as 85 percent of those government checks could be subject to tax. To figure out just how much in taxes your Social Security might cost you, you’ll have to do some calculating using the work sheet found in your tax Form 1040 or 1040a.

If you discover that you will owe taxes on some of your Social Security benefits, there are two ways to deal with them. You can make estimated tax payments on the government check amounts. Or you can have federal income tax withheld from your benefits by completing Form W-4V, Voluntary Withholding Request, and filing it with the Social Security Administration.