The IRS Audit Blog

Archive for August, 2006

Question: Form 1099 and estimated tax?

I made about 7 grand working under 1099. I gotta do Form 1040es for the federal during next two weeks.

I understand that I can claim deductions for business related expenses (meal, transportation, cell phone bill and etc). How do you claim deductions for such expenses. Is there a seperate IRS form for calculating such a deduction? AND DO YOU BETTER BE READY TO FURNISH EACH AND EVERY RECEIPTS FOR SUCH EXPENSES? I don’t have all the receipts.

How do you do the likewise for the state of Maryland?

Advice will be appreciated.

Answer: You will add a Schedule C form to your 1040 and you will not be able to file a 1040ez, i.e. you’ll have to itemize to get the business deduction, but in your case it will probably be worth it. And yes, officially you’ll need receipts, but if you never get audited…

Maryland will (most likely) take your net income from the federal form.

IRS Faces Tough New Duties Under Health Overhaul

The tax agency would be responsible for checking whether individuals get required insurance, distributing billions of dollars in subsidies and collecting new taxes and penalties.

Illegal Immigration In Eastern Carolina Part 1 – WITN

Question: Which fafsa form should I fill out?

If I am attending college in fall 2009, which fafsa should I fill out?
Also, can I use my tax papers (W-2 forms, IRS forms, etc.) from 2007 if
I need to fill out the 2009-2010 form? Thanks!

Answer: You will need the 2009-2010 form and you will need to use your 2008 tax filing. IF you apply now you will only receive benefits for the remainder of the current school year.

National Taxpayer Advocate Delivers Annual Report to Congress; Focuses on Top Issues Facing Taxpayers: Taxpayer …

National Taxpayer Advocate (NTA) Nina E. Olson today released her 2009 Annual Report to Congress, warning that increased demands on the IRS have eroded the agency’s ability to meet taxpayer service needs and expressing concern that IRS collection practices are harming financially struggling taxpayers without producing significant revenue gains.

Lego Indiana Jones:The New Guy

Question: Calling all people with IRS delay processing pushed to 2/19?

My return was accepted on 1/20. Checked website around 1/29 and my date pushed to 2/19. I have called IRS twice. No audit nor is my return being reviewed. The only delay is possible offset of small state tax. I had a state bill two years ago and my return was not delayed. Those whose date pusehd have you checked 800-304-3107 for offset info?

IRS is busy. Was thinking that maybe they prioritized returns in a way that pushed people who had FMS offset issues.
to answer the what state you are in. MD

Answer: Call and see if you are able to get a consistent response.

I called the IRS last night because my direct deposit was due February 1st and I did not receive it. The lady at the IRS told me that due to a lot of returns coming in, some of them are under-going “resequencing”. This is a process where the computer program pulls them out of the order they were submitted and places them in a new batch to avoid a overload of the system (and subsequent crash…which is what happened last year around this time).

Unfortunately mines was included in that. I now have an expected deposit date of the February 15 . As far as I know my return was very simple to process (single, 1 W-2, nothing special). The only catch is that it’s my first year filing.

I hope this helps.

PPG Reports Fourth Quarter 2009 Financial Results

PITTSBURGH—-PPG Industries today reported sales for the fourth quarter 2009 of $3.1 billion, a decline of 2 percent versus the prior year’s fourth quarter. Reported net income for the quarter increased to $142 million, or 85 cents per share.

Tampa Tax Attorney explains IRS Offer in Compromise (OIC)

Question: I.R.S HELP!!! Is anyone a tax specialist?

If you receive a 1099 late (mid feb) and you already filed on your figures, and his 1099 came in way above your figures (he is way too high) what are my options if any? his comment was tough you have to pay it. Can I request an audit on him and me? To match figures.

Answer: Cat is right. You need to file a 1040-X to amend you return. If you receive a refund from your first return set it aside because you may have to pay some or all of it back after you factor in this extra income.

Like Cat said, the 1099 form represents income that did not have any tax withheld from it, so you have to pay the full amount of the tax now.

If it was your tax preparer that told you “tough, you have to pay it” then he’s probably right. Make sure he filled everything correctly and make sure you deduct everything you can, but there is no way around paying these taxes (except maybe by dying before April 15th).

If you’re trying to say that the 1099 is for more income than you actually received and the person is telling you that’s too bad, then you certainly can demand better documentation. If the company or person is lying about what they paid you in an attempt to take a bigger deduction and reduce their own taxes, then you have a case of tax fraud on your hands and you’ve been thrust into the middle of it against your will. If that’s the case then I would consult an attorney for advice and your options or talk to a CPA about what steps you can take to get the IRS to review the situation.

Audit: Fort Pierce department is “corrupt”

FORT PIERCE — An international firm hired to audit the city’s Community Services Department is recommending the city turn over its findings to the U.S. Attorney’s Office to determine whether criminal charges should be filed.Kessler International of New York City, a firm that specializes in uncovering white-collar crimes and corruption, called the Community Services Department “a corrupt …

Political Rant #58: Carbon Ration Card Tax In Readiness

Question: Where Can I get an updated version of form 8836?

The IRS has requested that I send form 8836, but I cant find it online nor in their publications. The form 8836 2005 is available on the IRS site, but Im sure I need the updated version. Where is it located? If you dont know, no worries. Thanks

Answer: irs.gov

All the forms are on their website in PDF format.

Up in smoke: Couple unravel after gambling goes south

Ken Weitzner and his guests lounged at a booth inside The Palazzo, their heads tilted toward flat screens broadcasting college basketball a dozen hours a day. March Madness 2010 had begun, and Las Vegas was its epicenter.

Kirsty MacColl – Innocence (2005 Digital Remaster)