The IRS Audit Blog

Archive for December, 2006

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DoggedByIRS.com Helps Average Citizens with their IRS Tax Problems

Jay Allen Finn, CPA, provides professional tax assistance services for those needing help with the IRS, and now Jay Allen Finn is proud to announce the newly redesigned DoggedByIRS.com website, which aims to provide users with a great deal of information about Jay Allen Finn’s services.

Taxpayer Advocate

Question: Need help filling w9 form?

I have to fill out a W9 form for a prize I won and it says to check the appropriate box:
Individual/sole proprietor
Corporation
Partnership
or Other

I am unemployed, do I just check other? :-/

Also, would I check the Exempt Payee box if I have had no problem with the IRS?

thank you so much
Thank you all! But, I read somewhere to check the exempt payee box if I don’t have any problems w/ the IRS ..

Answer: You are an individual. You’re not a business, or a corporation, or a partnership, or an “other entity”, so you’re an individual.

You are not exempt. You will have a tax obligation at the end of this year and will be required to fill out a tax return, so do not check “exempt”.

Resources And Expert Tips For Filing Your Tax Return

Find the right forms, locate local tax services and get tips from experts for filing your tax return this year.

Defining Taxes

Question: For a federal tax audit, can you deny providing previous tax year returns?

I have a friend who is going through a major face to face tax audit next week.
I remember reading somewhere that if the auditor asks for a previous year tax return that you should refuse to do this. It went on to explain why and how do refuse nicely.
Does anyone know about this or remember reading this article. It was sometime in the last 1-2 months in a magazine and could have been in Money but I cannot find it now.

Answer: I’m assume this is a field audit and not an office audit. An office audit is where you’re coming to meet with the tax compliance officer. Yes, it is true that the agent/examiner can get the requested return internally as others have stated. The reason to get the return from your friend is because it will be a lot faster than order it internally which can take months in some cases. Thus, it could extend the audit longer. In addition, it gives the agent another reason to expand the exam to other years because he/she thinks your friend might have something to hide. In any case, keep in mind of compliance that the examiner need to address in the case.
see http://www.irs.gov/irm/part4/ch09s09.html

4.10.5.3 (05-14-1999)
Prior and Subsequent Year Returns

1. The taxpayer’s prior and subsequent years’ returns should be inspected for proper filing and to evaluate audit potential. The returns should be evaluated for issues related to the year under examination and for large, unusual, and questionable items.

Windows may yield tax credit

Adding energy-efficient windows and doors can help save money on your monthly heating bill and could offer a significant tax incentive as well, thanks to a federal tax credit available for qualifying products purchased in 2009 or 2010 that meet minimum energy-efficiency standards.

Help with IRS Tax Audits – How to survive an IRS audit

Every single small and home-based business owner can easily save thousands of dollars each year in tax savings alone. “You have got to be cRaZy not to have one” says me.

Congress passed legislation that allows HUGE tax savings to encourage your success. They’ll even let you take tax deductions on losses from your home-based business, year after year, as long as you are actively and legitimately pursuing to make a profit.

Individuals who run a part-time or full-time home-based business qualify for a greater range of tax deductions than any other category of taxpayer! Even the super-rich can’t get the tax savings that YOU can get, simply by managing a home business that in all actuality may only take a small amount of your time to run. You could be saving yourself a lot of cabbage!

Did you know that in most cases the majority of wealthy individuals, along with the “rich and famous,” pay less than 15% in taxes, while the “average North American” pays upwards of 50% in Federal, State and Social Security Taxes? (This infuriates me!)

However, did you know that 70% of the job growth is coming from small businesses? Yeah that’s right! People are starting to catch on and the home-based business, industry has never seen such highs! People are really starting to take advantage of these tax savings and that’s always fantastic to see! Power to the people!

For the most part people, just like yourself are overpaying their taxes by thousands of dollars, or more, every year, and they don’t even realize it! Get this, the average tax payer actually believes that getting a refund from the IRS is a good thing!

The fact of the matter is, if you are getting a refund every year you are actually giving Uncle Sam an interest-free loan. Yep! He gets to keep your hard earned money (tax refund) throughout the year and can use it for whatever the legislators feels fit to do with it. This is money you could be putting back in YOUR own pocket to help YOU build and grow YOUR own home-based business! These are YOUR tax savings people, wake up! Stop complaining and do something about it!

I’m sorry…I’m screaming at the computer now, I’m just trying to get my point across here, actually NO, I’m not sorry. Can you tell I’m passionate about this? I’m not an overly religious person but this quote just seems fitting. “God Helps Those Who Help Themselves”

In order to ensure that you don’t miss some large tax deductions that could save you a great deal of money, it is wise to consult with an income tax professional so that you don’t miss any of commonly missed tax deductions.

Go get what is rightfully yours….Tax Savings!

A new spin on resolving to improve

Every year right about now I vow I’m going to change. There will be a new and improved me. I’ll adopt a positive outlook on life. I’ll get a trendy hairstyle and comb the few strands I have left over the top of my head. I’ll even start taking multivitamins — the Flintstone brand.

It Is Tax Refund Time – Consumers Beware and Be Aware!

Snowstorm touches ‘primal’ fears

The prospect of spending a snowy Super Bowl weekend without milk, bread, chips and salsa drove some shoppers to snake two or three carts at a time through packed checkout lines and grocery store parking lots Friday.

Ron Paul Freedom Rally at University of Pittsburgh 4/3/08