The IRS Audit Blog

Archive for August, 2007

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Bankruptcy stops foreclosure, repo, garnishment utility shutoff

Question: where do I send my 5405 for my tax credit. What is the address?

Is it the department of treasury Irs
Is there an address?

Answer: Your 5405 will go to the same address where your 2008 tax return was filed. Remember to fill out a form 1040X for 2008 to attach your form 5405 to; don’t just send the 5405 as it will be returned to you with instructions to fill out the 1040X.

IRS Proposes Preparer Registration, Testing and Continuing Ed

Registration, testing and continuing education are at the core of the requirements proposed by the Internal Revenue Service in response to calls for greater oversight of paid tax preparers.

Timothy Geithner Scandal Widens: Obama’s Treasury Secretary Nominee is a Tax Dodger, Cheater

Question: How is it that some former IRS agents do not pay federal income tax?

Answer: because they KNOW the tax code. something most other people don’t. Even if they’re audited they know the right answers and are willing to go to tax court, something the IRS usually doesn’t do unless there’s a lot of money at stake, like Snipes.

My accounting instructor (years ago) said, if you’re not being audited every year you’re doing your taxes wrong.

he was audited, and never lost. Most tax people don’t know ALL of the changes or the subtleties contained in the code.

Did you know the tax code is only 15 pages? the volumes of tax info are all amendments to the orginal code.

Marriage and Divorce Mean Tax Changes

KANSAS CITY, MO–(Marketwire – 02/12/10) – Valentine’s Day is just around the corner and what better time to talk about how falling in or out of love can also change a taxpayer’s relationship with the IRS. By knowing what the tax rules are, taxpayers can be prepared when filing their tax returns. Being prepared helps them ensure they get the maximum possible tax benefits and, at the same time …

Accounting Tips : How to File for IRS Debt Relief

Question: Father is giving me a loan on my 2nd mortgage, how do I set this up without any attorney/bank fees?

We want to make it official, where he will claim the interest on his taxes, and I will claim the interest paid as deductions on my taxes. How do I do this with him without having to pay the costs of attorneys/bankers/title lawyers? Is there a free easy way of doing this?

Answer: Prepare a note and a deed of trust. Normally, it’s best to have a real estate attorney to look over the documents, to make sure everything is in order, but there are blanket forms that you can use where you can fill it out yourself. It’s important that once you finish signing the Deed of Trust that you take it to your County Clerk’s office and have the document recorded. This will cost money, but it’s they way to make the document public record and puts an official lien on the property. Find a good real estate attorney, or a title company attorney, and normally they can work one up for you for about $50-$75 a document. Recording the Deed of Trust may be $40-$100, depending on the length of the document, and your clerk’s recording fees.

Another sales tax referendum after Wild Places & Public Spaces?

By Christopher Curry Staff writer Eleven months before the Wild Spaces & Public Places half-cent sales tax expires, talks are under way about the possibility of a voter referendum on another sales tax to follow directly on its heels.

Divorce Advice : Can I Deduct Divorce Attorney Costs?

Question: Why would Matt Murphy, the guy with Barry Bonds 756 home run ball want to sell. Keep it until Bonds retires?

If he sells it, he will be taxed on the money he receives. Think he better talk to a CPA, tax preparer or attorney before he sells it. He’s better off waiting, put it in a safe deposit box, then when Barry retires, sell it then. Having to give at least 40% to the government is ridiculous. Safe deposit box is cheaper and Barry is still playing ball.

Answer: He’s going to be taxed on the value of the ball, whether he sells it or not.

So he can’t afford to keep it.
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Rapid-refund loans dwindling

Getting your tax refund quickly using a rapid-refund loan has gotten more difficult for the second straight year. That may frustrate the customers who are turned down for these expensive short-term loans. But consumer advocates say it’s good news.

Tax Strategies by Sandy Botkin, CPA, Attorney