The IRS Audit Blog

Archive for July, 2006

Question: How many years back can the Irs audit a taxpayer?

Answer: 7 years

Cut Your Taxes in 7 Easy Steps

Do some research and don’t wait until April.

Thievery Corporation pt 1: Beyond the Monuments: Embedded

Question: How many exemptions can I claim on my tax form?

I currently qualify to claim 7. I am a single mother of one child and do not want to owe the IRS money at the end of the year. I also want to keep as much money as possible in my check.

Answer: Having limited information, looking at a Form W-4 I can see where you might possibly qualify to claim seven.

I don’t know if I would ultimately claim all 7 the entire year, though. With 7 exemptions you will hardly have anything taken out of your check for Federal Withholding. Good for your check, but not so good when it comes time to file. You want to have enough taken out so that you’ve paid in enough to not owe the IRS anything additional, but without knowing your income, I can’t tell you how many to withhold.

The link below will take you to the IRS website and straight to their withholding calculator. Go through the steps entering your information, and it should give you an idea of what to do. If the link doesn’t work, go to www.irs.gov, click the “individuals” button at the top, and then click the “withholding calculator” link in the middle of the page.

Hope this helps!

Do research before picking tax preparer

“Taxpayers are ultimately responsible for everything on their return, even when it’s prepared by someone else.” If you take away nothing else from this column, please remember this quote from an IRS spokesman.According to a 2009 analysis of complaints to the Better Business Bureau about tax preparers, 33 percent alleged that the preparer made an error or mistake in the tax return, often …

How to Complete and File a 1040A Tax Form : Tax Exemptions & 1040A Form Tips

Question: What address do I mail a wage garnishment release letter to the IRS?

Hi. I am trying to stop a wage garnishment from from the IRS. Can someone tell me what address I am to use to mail a notice to the social security treasurer? Wages are being garnished and I am trying to notify them so the garnishment can stop. I really need assistance on this one. Thanks!
The wage garnishment is not mine. Bankruptcy was filed.

Answer: There will be a phone number on the Notice of Levy on Wages, Salary and Other Income. Call that and be prepared to fax a copy of the face sheet of the bankruptcy petition. It should be 800-829-7650. You should also have a fax number where a release can be sent. IRS must release the levy because the taxpayer is under the protection of the court.

If IRS was listed as a creditor in the bankruptcy, it will received notice in the ordinary course of business but direct contact will speed things up.

Tax Tip: 3 reasons to prepare and file your taxes electronically

Last year, 2 out of 3 tax returns were filed electronically. Was yours? If not, here are three important reasons to e-file your return.

Dr. Chuck Baldwin addresses Pensacola Ron Paul meetup group

Calendar

Submissions for “Community Calendar” are required two weeks preceding the date of publication. Send to: Mary Ann Bottari, Pioneer Press, 3701 W. Lake Ave., Glenview IL 60026; mbottari@pioneerlocal.com. Information may be faxed to (847) 486-7495.

Tax Night at the Wilmette Post Office

Question: What day of the week does the IRS update refund info?

We were finally able to e-file today, since we were a delayed filer due to claiming the HOPE credit. Our tax preparer assured us we would get the direct deposit refund on Febr. 22 and I always just like to check and make sure the IRS rec’d it, with no glitches.

Answer: it updates every wednesday. so if it was accepted it will probably change to processing on wednesday, then the wednesday after that it should change and have a direct deposit date.

Tax Refund Loans: Quick Money That Will Cost You

It’s just about tax season again. And for many of us, this time of year means getting a large refund back from Uncle Sam. But what if you don’t want to wait on the IRS to get you your money? There are ways to get refunds quicker, but are they really a good idea?

My Tax Return Was A Mess Before TurboTax