European Stars and Stripes (Newspaper) - January 30, 1991, Darmstadt, Hesse                                Money amp taxes state taxes at a glance mass. Rhode Conn. Island new Jersey Delaware Maryland &.c. Some exemptions for military pay. Exempt or state. For state by state specifics tax Only on Contact a military Community investments Legal assistance offices amps Susan Harris jury still out on overseas tax appeals by Crystal Laureano staff writer a test program that lets americans Appeal iks tax rulings through a representative overseas will Likely be extended another year. Under the one year program which began last january an irs official in Europe hears taxpayer cases in person. This saves disgruntled taxpayers from the lengthy Back and Forth paper Drill of appealing their Case to Washington by mail. Quot cases can be turned around so much faster than having cases worked from the Washington office Quot said Myrna Johnson irs representative who hears the cases. Irs officials in Washington d.c., Are expected soon to extend the Pilot program through 1991. In the meantime the program will continue to be offered by the irs office in Bonn Germany said irs spokesman Steve Marcuse. He said the Extension is necessary because the program was not adequately publicized. People unhappy with an irs action should have been informed of their right to Appeal through a european representative. But the irs did t begin to notify taxpayers until Halfway into the year. Quot we Felt that it really was t publicized Well enough for us to determine Vvhs ethene s a valid. Program Quot Marcuse said. By the last Quarter of 1 990, requests for hearings Rose dramatic ally indicating taxpayers were getting the word Johnson said. She received 15 requests in the last quater compared to just one in the previous one. Anyone who disagrees with a tax examiner s ruling requiring payment of More taxes has the right to Appeal. Those initial rulings usually Are made at the service Center where returns Are processed she said. Taxpayers also c an request a hearing if they feel their claim for Relief was unfairly denied. The person seeking an appeals hearing overseas should explain to the tax examiner in writing Why what a new f look or the second year in a Row Servio members will find few changes in Federal tax forms and  there Are a few new items. Here s a a the personal exemptions allowed for the taxpayer spouse and each dependent have been increased to compensate for inflation. Exemptions Are now $2,050, up from $2,000 last year. A for most people Standard deductions also have been increased. This year single taxpayers get $3,250, up from last year s $3,100 married filing  get a $5,450 Standard deduction tip from $5,200 last year and married filing separately returns gel$2,725, up from $2,600 last year. A the Basic tax rates remain at 15 percent 28 they disagree with the decision. An irs official then will Contact the taxpayer to begin the process. Johnson conducts the hearings. She travels from her office at the . Embassy in Bonn Germany to London Rome and Paris to hear cases. She can hear cases involving up to $100,000 a year. A most cases Johnson hears do not involve Black and w Hite situations she said. And often the facts do not match those found in precedent setting court cases. In such cases Quot you have to evaluate the individual taxpayer s intent Quot Johnson said. Percent and 33 percent this year. Next year the top rate drops to 31 percent. A f Here s also been a change in the amount of consumer  s tax  year 10 percent of the interest can be deducted. Next year Zero percent will be deductible. A irs officials Are also starting to crack Down on the requirement that taxpayers must provide social Security Nurnberg for All children claimed As dependents. This year social Security numbers must be shown for kids 2-years-old and older. Next year 1-year-old children also will need a number. Tax specialists suggest that the minute a child is born parents should apply for a social Security card on his or her behalf. The social Security administration provides a simple one Page application form. 14 a a is amps financial planning guide wednesday january 30, 1991