The IRS Audit Blog

Archive for July, 2007

Question: Dad mistakenly put me down as a dependent.. Not getting a tax refund, what can I do?

I’m 19 and I would always let my dad do my taxes. And I don’t live with my parents or anything and I let him do my taxes and was wondering why I didn’t get my refund and I went to the irs.gov and tracked my tax refund and it told me.

“You did not qualify for the Stimulus payment because you were claimed as a dependent by another taxpayer.”

My dad must have mistakenly put me down as a dependent on my tax forms. Is there a way that I can get the check. b/c Im kind of broke and was really relying on this money for rent/food..

(And btw my dad didn’t put me down as a dependent on his forms so he didn’t get my $600)

Answer: You do not need to live with your parent to be a dependent.

If you were a student and you did not provide over half of your own support, you are usually claimed as a dependent of a parent.

If you were not a student but you made $3,400 or less, you are usually claimed as a dependent of a parent.

If neither of these apply to you, then you could amend your own return and claim yourself. It may or may not result in an additional refund to you. It will not result in an additional stimulus payment to you, for that you will have to file your own return in 2009 and claim yourself.

BTW, if your dad claimed you, he wouldn’t get any stimulus payment for you, because you are over age 16.

Ask your dad for a copy of your tax return and decide what to do. Next year, do your own taxes.

IRS To Regulate Tax Preparers

What’s Your Reaction? IRS Commissioner Doug Shulman announced that tax preparers will be regulated.

Track Your IRS Refund

Question: What Is A W-9 Form & How Much Will I Know That I Have To Give The IRS?

I’m trying to be a courier to make good money. When I applied for the job they gave me a W-9 form to fill out. The real question I’m asking is how much money or percentage is the IRS going to want from me. Example: I started working as a courier on October 1, 2008 and the last day of the year is December 31, 2008. In those 3 months I made $6,000 and I reported it. How much or what percentage will I have to give to the IRS?

Answer: About 15% for FICA. If you only made 6000, probably no income tax. If you made more than 6000, perhaps 10% to 15% over your standard deduction (or itemized) plus personal exemptions.

Win A Family 4 Pack Of Bears Tickets

Enter for a chance to win a family four pack of tickets to see the Bears play at home courtesy of Walgreens!

videos funny!! mary, mEme and eFra !!

Question: Will the tax stimulus be forwarded to my new address?

We moved from where we filed our taxes to another state due to military. All of our mail has been forwarded to this new address. We even got that letter stating that we may be eligible from the irs forwarded here. On top of the move the account the tax return was deposited in has since closed, again due to military move, and I understand that means our stimulus will now be mailed. So with that, will it also be forwarded? I cant find an answer to that on the irs.gov site and I was only told to mail in a change of address form like 2 days ago. The social is one of the first to get deposited and mailed. I know it will be too late to make the address change. Any help would be great. Thank you!

Answer: The IRS shares change of address forms with the post office.

Tax Tip: Be sure to know whether you qualify for the EITC

The Earned Income Tax Credit can be a boost for those impacted by hard economic times. However, one in four eligible taxpayers could miss out because they don’t check it out.

Mike Gravel in 2008

Question: What would you do?

A while back we were contacted by an irs agent telling us
that our former partner was being audited. He then told us
that we owed $$ on capital gains from our stock buyout.
The ex partner altered the legal documents and forged
my husbands signature showing the sale to be almost
70,000 less than it was. Then we got an examination notice from Irs for all of our personal and business accounts
from that year. We have complied and due to this its now
clear that the ex partner commited fraud. We just got an
accountant recently and are trying to straighten this all out
but regardless of our honesty the agent just keeps digging.
I had to be honest due to the fact that I do not want to face
the type of charges the ex will if this was found out in the
future. Any suggestions on what to do from here?

Answer: You are dealing with multiple problems: a dishonest partner who may have defrauded you as well as the government, a comprehensive tax audit and an auditor who reasonably will wonder if if you are a victim or a conspirator. I would normally suggest retaining a CPA or enrolled agent to represent you but this one calls for an attorney. Now.

Money Matters : Get organized as tax season begins

The 2010 tax season has arrived. Each year on January 15, the Internal Revenue Service turns on the mechanism that allows taxpayers to start filing their returns electronically. But while January 15 may be day one, the real action doesn’t generally get going until after January 31.

DOCUMENTING YOUR BUSINESS EXPENSES IS SO EASY!!!!!!

Question: How do I view IRS form 990 for Charitable Organizations?

I used to be able to view IRS form 990 for charitable hospitals on Guidestar.com for free, but it appears that they now charge for this service. Is there a site, online, where these forms, which are supposed to be freely available for the public, can be viewed?

Answer: Actually, the only part that is freely available is that you can go to the organization and inspect the return. Nothing else is actual free, especially the service this group was providing. You can call those organizations and see if they will email a copy to you, but not likely.

Why do you feel so entitled?

Nonprofits could lose their tax-exempt status

Several hundred Kerr County nonprofit organizations could be in danger of losing their tax-exempt status this year because of a 2006 federal act that requires most to file at least every three years with the IRS.

Form 990: What If There Was a Better Approach to Compliance?