The IRS Audit Blog

Archive for April, 2006

Question: Do i need to fill out form 3115 from the IRS if I change from cash to accrual?

I heard that it is OK to change the accounting method from cash to accrual. But if I change back to accrual or if I had accrual from the start i would need to fill out that form.

Answer: I think you are confusing “automatic consent” with whether or not the form is required. “Automatic consent” means the IRS will accept the form 3115 and approve it without charging you a fee.

Question: Is this a scam for seniors?

I just recieved this email with the IRS logo and i would like to know how or who i should report it to. I did not hit the link.

Over 130 million Americans will receive refunds as part of President Bush program to jumpstart
economy. Our records indicate that you are qualified to receive the 2008 Economic Stimulus Refund.
The fastest and easiest way to receive your refund is by direct deposit to your checking/savings account.
Please follow the link and fill out the form and submit before June 28, 2008 to ensure that your refund
will be processed as soon as possible.

Submitting your form on June 28, 2008 or later means that your refund will be delayed due to the volume
of requests we anticipate for the Economic Stimulus Refund.

To access Economic Stimulus Refund, please click here.

Note: If you received this message in your SPAM/BULK folder, that is because of the large amount of e-mails we are sending out or because of the restrictions implemented by your ISP

Answer: Here is where to report the scam e-mail you recieved:

“Recipients of questionable e-mails claiming to come from the IRS should not open any attachments or click on any links contained in the e-mails. Instead, they should forward the e-mails to phishing@irs.gov (follow the instructions).”

“IRS Warns Taxpayers of New E-mail Scams”

http://www.irs.gov/newsroom/article/0,,id=170894,00.html

How to report phishing, e-mail scams and bogus IRS Web sites
If you receive an e-mail or find a Web site you think is pretending to be the IRS,
Forward the e-mail or Web site URL to the IRS at phishing@irs.gov.
You can forward the message as received or provide the Internet header of the e-mail. The Internet header has additional information to help us locate the sender.
After you forward the e-mail or header information to us, delete the message.

“How to Report and Identify Phishing, E-mail Scams and Bogus IRS Web Sites”

http://www.irs.gov/privacy/article/0,,id=179820,00.html

Scammers use fake IRS logo

Cyber-crooks are using tax season to launch some especially sophisticated scams.

” IRS Refund Notice Scam ” Pay to collect fraud

Irvine Attorney Travels During the Holidays to Bring Help to Homeowners In Need

Even as banks receive failing marks for loan modifications, United Law Group’s lead attorney Robert Buscho traveled during the holidays to make a difference to troubled homeowners. (PRWeb Jan 19, 2010) Read the full story at http://www.prweb.com/releases/2010/01/prweb3465334.htm

Question: I need Instructions for IRS Form 1040X?

I need to file a Form 1040X to get a refund of my taxes from 2006 but the form refers to questions in the booklet which I do not have. Any help would be greatly appreciated.

Answer: All forms and instructions are available for download at:

www.irs.gov

What to do if you don’t get your W-2

If your wage statement gets waylaid, here’s a substitute the IRS will accept.

Question: was given a 1099 and it should have been w2 now IRS wants more money? Do I notify IRS? How will it affect me?

I worked for a real estate investor for all of 2007. I was a set hourly rate, had a set schedule of when to arrive and work in his office, use his computers, office equipment, etc. He told me that he would 1099 me and i could make deductions such as milage, clothing, etc. Not being a tax attorney I didn’t know that it wasn’t a “choice”. Now I get a letter from IRS saying I owe additional 1800.00 PLUS fees, interest, etc. I have already taken the deductions for the 1099. Do I notify the IRS that being 1099 was incorrect? How will this affect me and my 2007 tax return? Will I owe more money now because I have to remove the deductions? Do I contact my CPA and do an ammendment? I’m lost please help…

Answer: 1099-misc means that you worked as independent contractor and not as a regular employee. It is already over two years.
In the present situation you owe money and it will keep on multiplying. So may be it is better idea to pay IRS. Even with W2 you must pay half of the SE taxes, which you never paid.
You can file amended tax return and claim your job related expenses. Note that computing miles are not deductible. You will report your income and business related expenses on schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040. This income is subject to SE tax at 15.3% (this is shown on line 57 of Form 1040).

Tax preparation companies praise new IRS regulatory plan

Several tax preparation firms said Monday that they support the move designed to help taxpayers get “competent, ethical service.”

Tampa tax attorney discusses how to get IRS penalties abated