The IRS Audit Blog

Archive for October, 2006

LAWRENCE: Year kicks off with new mayorâs hopeful message

Township Councilman Michael Powers was tapped to serve a one-year term as mayor, and two newly elected Township Council members were sworn into office as the Township Council held its annual reorganization meeting New Year’s Day.

Tax Fraud Day in Pittsburgh April15, 2009 Audit the FED HR 1207

Question: What if I haven’t received notification back from the IRS after I submitted form 2553?

In January 2007, I submitted form 2553. Now I must file taxes for 2007 (I filed an extension), and my accountant is asking for files that the IRS was suppose to send back to me — “copy of sub-s election letter from the IRS” However, I never got any files back from the IRS last year, any help?

Answer: When you filed the form 2553, you did mail it certified/return receipt requested, right?

It can take the IRS 60-90 days to process the form. That time has expired. Call the IRS, ask for business accounts and ask them what the system shows as your filing requirement. If it’s not an 1120s, you’ll know the IRS didn’t process the form.

AZ oversight agency eyes SEABHS action

The agency designated by the state to manage publicly funded behavioral health services in Santa Cruz, Cochise, Graham, Greenlee and Pima counties is on the verge of issuing a corrective action plan to the embattled Southeastern Arizona Behavioral Health Services.

Ron Paul Las Vegas Tea Party Part Two

Question: I e-filed my taxes and the expected refund date has past and nothing should I worry about the A word (audit)??

Answer: I wouldnt worry sometimes it just takes longer. If you didnt ask for a quick payment then it could take 6 weeks to get it back. And are you sure you asked to get it back quickly?

Tax collector will operate from township building

Unlike her predecessors, Penn Township’s newly elected tax collector Clara Keene will not have office hours at her home. Instead, anyone who wants to pay taxes in person will be able to do so in limited office hours in the Penn Township Building in April.

Question: Can I roll over money in my Roth 401k into a Roth IRA, and then use the money for educational expenses?

The Roth IRA was opened 5+ years ago, but it has very little money in it. The Roth 401k with my current employer has a good amount of money in it. I plan to leave my current employer before I start school. Links to relevant IRS publications would be helpful.

Answer: The Roth 401k has two parts:

Roth parts is your after tax money
401k is your employer conribution with pre-tax money

To do it, you could transfer of your Roth to the Roth IRA
The 401k part is transfer to the Roll over IRA.

And you could withdraw the “principal” not the earning of the Roth IRA for education without paying tax+penalty while you under 59 and 1/2.

But I suggest find another source of money for your education because tap in Roth IRA early is bad move. I think you know what I mean. THE POWER OF COMPOUND INTEREST.

YOUR MONEY: Tax season: What’s new for 2010

Last year, millions of Americans received unemployment checks. Which makes for millions of people with some tax-free income. Congress made the first $2,400 of unemployment benefits exempt from federal income tax for last year. See? Not all tax policies cause pain.

Tax Tips: Year-End Tax Tips December 2009

Question: I’m a waitress; what % of my tips does the IRS get?

I’m sure it’s not as simple as a “__% of tips earned;” probably a lot of variables involved including other income (if any), living situation (dependent or not), etc…but is there some general, average “rule of thumb”? I know I’m not REQUIRED to have this information as the employer keeps track (and notifies the IRS) of tips claimed each night, and it’s the IRS’s job to figure out the rest, but I’d like to have some idea of how much of the $$ I THINK I make is actually still mine come April.

If it helps, I live at home (my folks claim me as a dependent), I wait tables three nights a week and make anywhere from $20-$100/shift (yeah…the economy sucks, as do cheap people ). Add the babysitting (~$90/week), and I make…not a whole lot.

Thanks for any help/input you can provide!

Answer: How come you don’t know what your employer is taking out?

Can’t they pull a snow job on you if you don’t ask and follow up?

Don’t get me started on the IRS stealing voluntary gifts, anyway.

Just don’t let your employer have a free reign on your hard earned money.

Unemployed or underemployed? Check out these breaks

IT’S ONLY MONEY: Here are some oft-overlooked tax breaks and retirement plan allowances that might help unemployed or underemployed workers.

Paying Taxes : How to Determine If a Dependent Has to File a Tax Return