The IRS Audit Blog

Archive for October, 2007

Question: www.irs.govwhich address does the irs use to send refunds? the one on the form or the one on the W2 ?

Answer: The IRS will send your refund to your address that you put on your tax return. Hopefully it is the one that is in their system for you as your legal address. If you have not updated your address with them and you have moved, you need to do that as soon as possible.

Tax Tips Archive More>>

WASHINGTON –– The Internal Revenue Service kicked off the 2010 tax filing season today by issuing the results of a landmark six-month study that proposes new registration, testing and continuing education of tax return preparers.

GET LOAN ON TAX REFUND AT COREY TAX 305-823-9228

Bankruptcy is not something to jump into haphazardly. Chances are, if you are considering bankruptcy, you have considered every option possible to dig yourself out of debt. If you are thinking about filing for bankruptcy, you aren’t alone. Last year 1,074,225 individuals and families filed for bankruptcy in the United States.

A common misconception about bankruptcy is that it is a humiliating and miserable experience. However, many who experienced it tell a different story. Here are some benefits of filing for bankruptcy under Bankruptcy Code.

1) Bankruptcy restructures debt so it is manageable

The vast majority of people who file for bankruptcy genuinely desire to pay back their debts, they are just financially unable to. Filing for bankruptcy gives debtors a monthly payment plan that is manageable according to their income. By filing for bankruptcy, it is a message to creditors to expect to receive less money in the repayment deal.

2) A third party steps in to administer the debts, taking the burden off of the debtor

Imagine life without screening your calls and mounds of menacing mail. If you have been hounded by debt collectors or collection agencies then a bankruptcy case means relief. Under law, creditors are barred from phone calls or harassment in order to collect debt. For Chapter 13 filings, debtors pay a set monthly amount to an administrator for either three or five years, based upon income and net worth. The administrator distributes payments to the various creditors, leaving you completely out of the process.

3) Lose obligation to pay debts

A bankruptcy case means a discharge of all debts, which also halts lawsuits, prevents garnishments, averts repossessions of vehicles, and stops foreclosures and IRS seizures. In a sense, whatever you were obligated to pay before filing for bankruptcy is wiped out if you follow the agreement.

4) Teaches you to budget

As a part of going through bankruptcy, a debtor must put together a list of all of their monthly expenses broken down in categories. In a sense, by law you are required to create a budget. Financial experts often cite creating a budget as the most important part of financial responsibility. By creating and sticking to this budget as you move forward, it can be greatly beneficial to your financial future.

5) A fresh start

Much of the toll of financial problems and accumulating debt is on the emotional well-being of the parties involved. By filing for bankruptcy, the slate is wiped clean. It is an opportunity to start again without all of the baggage of debt carried along. That forgiveness can bring great relief and excitement for a new direction.

If you are thinking about filing for bankruptcy in Louisiana, contact the firm that focuses exclusively on bankruptcy law, Kirkpatrick Bankrutcy Law. Every day, the attorneys at Kirkpatrick and Associates help people save their homes, their cars, and wipe out their debts from $5,000 to $300,000. No other law firm is better qualified to bring you the fastest debt relief, and do it right the first time. For a free consultation, call 504-828-3311 or visit kirkpatrickandassociates.com.

THE CRAZYIEST TAX

Lost Your Job? The IRS Thinks You’re Loaded

(Gee Renee)Is ALS, [TPP] Cash Gifting Legal? LIVE IRS Interview

Hamburg Board Finalizes Security Systems, Discusses Reorganization

Hamburg School Board vice president Bryan Hollis, left, listens as Superintendent of Schools Max Dyson makes a point during the board’s regular meeting on Thursday night. Hollis presided in the absence of Dane Weindorf, the board president.

IRS Presentation on 403(b) Final Regulations – pt 10

Question: How difficult is it to obtain an order for IRS form 8821?

This s an order to force someone to turn over their IRS records to you.

Answer: Form 8821is a Tax Information Authorization
Form 8821 allows an appointee to inspect and/or receive confidential tax information and is generally limited to the specific tax matter described on the form. An appointee can be an individual, corporation, firm, organization or partnership.
No one is force to do anything. You authorized a person to help you request and help with IRS situations. But a form 2848 Power of Attorney is usually required for more detailed information of your IRS account.
I am not sure what you are needing and how you think that it is an order to force some to turn over IRS records.
Visit IRS website www.irs.gov Keyword Power of attorney

New Regulations Help Guarantee the Competency of Tax Preparers

Excerpt from CSA Journal article, Tax Time Seven Tips for Selecting a Tax Preparer:The U.S. Internal Revenue Service IRS announced that in the near future, all signing tax return preparers will be required to register with the IRS, test for competency, and maintain no less than 15 hours of continuing professional education each year. This registration and licensing process is scheduled to…

Everyday I get quite a few questions regarding the American Recovery and Reinvestment Act of 2009 and how it would apply to buying a home using VA financing.

For those of you that don’t know, this act was initially passed as a “tax credit” to first time home buyers up to $8000 dollars.

Many groups like the National Association of Realtors petitioned lawmakers to monetize the tax credit which would allow buyers to use the credit as a form of down payment.

Using a tax credit as down payment mainly benefits FHA borrowers.

With a VA loan, borrowers already have 100% financing in place. Conversely, the FHA requires purchasers to make a 3.5% down payment. In those cases, a monetized tax credit could be used to offset closing costs and related transaction fees.

Technically speaking – VA borrowers could use the tax credit to buy down the VA funding fee.

The traditional VA funding fee is 2.15% for 100% financing. If a veteran puts more than 5% down in the transaction, the VA funding fee drops to 1.25%. For this to work with as little down payment as possible, the home purchase price would have to be $160,000 or LESS. Furthermore, this strategy only makes sense for Veterans intending to put the 5% down regardless of the situation. Otherwise, putting 5% down to save less than 1% in a VA funding fee is crazy.

A word of caution to all VA buyers.

Just because HUD may allow buyers to use tax credits as down payments, your bank may not. So, regardless of what people tell you, the BANKS make the rules. If you plan on using the tax credit in addition to your down payment, consult with your bank first. Failing to do so could result in a rude awaking. At the time of this writing, most banks DO NOT have a system in place for honoring down payment tax credits.

For your reading enjoyment I have also attached:

Here is also a brief excerpt taken from the National Association of Realtors website regarding the tax credit. Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer’s income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

2010 Tax Changes

Here’s a highlight of just a few of the tax changes in 2010.