The IRS Audit Blog

Archive for February, 2007

Wealthier Investors Get Do-Over With Roth IRA Rules (Update2)

Jan. 28 (Bloomberg) — U.S. investors who convert a traditional Individual Retirement Account into two or more Roth accounts to make a bet on the market rising can save on taxes if it doesn’t.

Personal Finance & Retirement Planning Tips : Excess ROTH IRS Contribution Tips

Springfield Man Pleads Guilty to Bank Fraud, Tax Fraud Schemes

Conspirators Passed More Than $100,000 in Counterfeit Checks

FOR SALE or RENT in Springfield, MO 3042 W. Greenwood Duplex

Question: howz this??give a astar if u like………?

A man, called to an Audit By The Irs, asked his accountant for advice on what to wear. ‘Wear your shabbiest clothing. Let him think you are a pauper.’

Then he asked his lawyer the same question, but got the opposite advice. ‘Do not let them intimidate you. Wear your most elegant suit and tie.’

Confused, the man went to his buddy, told him of the conflicting advice, and requested some resolution of the dilemma. ‘Let me tell you a story,’

Replied the buddy.

‘A woman, about to be married, asked her mother what to wear on her wedding night. ‘Wear a heavy, long, flannel nightgown that goes right up to your neck.’ But when she asked her best friend, she got conflicting advice. ‘Wear your most sexy negligee, with a V neck right down to your navel.’

The man protested: ‘What does all this have to do with my problem with the IRS?’

The buddy responded: “‘No matter what you wear, you are going to get screwed”

Answer: I loved it.You deserve a star ‘cos you made my day.

Don’t waste that tax refund

You’ve just received a fat income tax refund check in the mail from the IRS. Now what do you do?   Sure, you can blow it on a trip to Vegas. But is there a wiser way to use that income?   We spoke to tax experts who gave their suggestions on what to do with the refund you received. Here is what they recommended:

BREAKING NEWS!!! IRS DEADLINE COULD BE A HUGE PROBLEM

Question: Can I sue my tax filing service provider if he hasnt filed at all and neighter informed me he’d be late?

My tax filing service provider took all information from me, sent me a draft, took payment for all tax service and told that he’d send a doc to be signed by me (same as draft) and then he’ll e-file it. Now last date has passed and he neighter sent the mail, nor filed for extension nor replied to my email I sent him. Can I sue him? since I am at financial loss and I’ll have to pay to some other provider to get this done, plus IRS penalties in form of interest. Plus I have been very tensed those days waitied for his mail to come and I arranged fedex to quickly return it same day. Its been a real pain for me. I dont intend to defame him, but to ask for persosnal opinions and views from you and then I can go and ask for legal assistance.

Answer: Anyone can sue for pretty much anything. Winning and collecting are entirely different matters. At best you’d be entitled to a refund of any fees paid. Most pros will cover IRS penalties due to their own negligence but there is no legal basis to recover that from them involuntarily.

You’d only likely prevail if you had brought your tax information to him early in the season. If you brought your tax information to him late then you should have no reasonable expectation of them being prepared on time unless you had an explicit contractual agreement for him to do so, although he should have applied for an extension if he knew or suspected that he’d be late.

Whether there will be any penalties or interest for late filing depends upon any balance due. If you’re due a refund there is no penalty involved. Many tax pros will “back-burner” returns that show a refund due and put priority on those who will owe when they file. Again, he should have communicated this to you.

Have you called and spoken to him?

Parents group, ACLU protest proposed Hazleton Area registration policy

Hazleton Area’s superintendent should know by early next week whether a controversial registration and admissions policy will be ready for school board approval. The policy, which has been scrutinized by members of a parent group, the American Civil Lib

IRS’d: The Beginning Trailer (Original Cut)

Question: 2008 estimated taxes?

I file married jointly. I paid $560 in 2007 Federal taxes. When I completed my Turbo Tax it spit out 1040 – ES forms for extimated tax payments of $600 per quarter. I checked www.irs.gov, and read that you only had to make estimated tax payments if you satisfy two requirements, one being owing more than $1000 in underreported taxes next year. I don’t think anything will materially change with my 2008 taxes, so I don’t anticipate owing more than a $1000. Can I disregard the estimated taxes?

Answer: As long as you don’t owe over $1000 additional when you file, you won’t be penalized if you don’t make estimated payments.

Geithner: Lower Risk of Double-Dip Recession

Treasury secretary says there’s a “lower risk” in the possibility of a double-dip recession. United States Secretary of the Treasury – Timothy Geithner – Business – Financial Services – Insurance