The IRS Audit Blog

Archive for November, 2007

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Do you need tax help? Do you need help with the IRS or state and need someone to save you? Or is tax season coming around and you didn’t like the job your last tax preparer did? Maybe you just don’t have time to do it yourself anymore, or this is your first time? How would you go about to find the perfect tax professional?

First we must consider what the “perfect tax preparer” is. What do you want? Everybody wants at least three things from a tax professional:

Of course, in this economy, most people don’t have money to spare! That means that most likely, you want a fourth thing from that tax professional. But of course, you want your dealing with that professional to be pleasant–as unpleasant as taxes are. I know. When I got that first paycheck…”WHAT??? I lost 10% of my paycheck in withholdings to the IRS?” So lets add to our list:

How do you find that “perfect tax professional”-The Perfect Tax Professional is honest and fits the guidelines above. Here are some tips.

Now that you know what you want, its time to search, It’s well worth it to get a trustworthy tax professional that you can use for years to come. You must decide whether you want to use a big tax company, or a small one. Small tax companies can; but not always are; more personal and less expensive. They may not be as reliable or quick as a larger entity however. If you happen to have tax professionals available locally, check them out first. There is nothing quite like that same-town feel.

Since you want your tax problems solved right, quickly and confidentially, you need to find an experienced and trustworthy profession or firm. Because you want a pleasant and personal, after you find several professionals with good client testimonials and 10+ years of experience: visit or call them up and inquire about their services. If they or their staff seems friendly and knowledgeable, mark them as your potential preparer. Talk to their clients, if possible, and see what sources recommend them.

If you’re looking for someone online, look at their web page. If it has blatant advertisements, or exaggerated self-promotion, move on. If the tax professional has a video they did themselves, watch it so you can get an idea who is behind the email or phone. It’s common sense! Ask yourself “Does this company look like one I want to deal with, one who may fit the bill above?”. Of course you probably want to check out their prices as well. If the prices aren’t listed contact them and ask.

You can also use free tools like Macafee site advisor (check site report) to check what the web page is linked to. If the web page is directly linked to all kinds of other tax sites, one company or person probably owns them all. Move on. Don’t trust companies that link to bad or dishonest sites either.

I commend you on your wise decision to help yourself and save yourself trial and hardship in the future.

Recent Tax News

IRS callers get busy signal 30% of the time

WASHINGTON — Need help with your taxes? Good luck reaching someone on the phone at the Internal Revenue Service.

Is Cash Gifting Legal? LIVE IRS Interview. www.MiracleCall.info

Question: The Irs refund hotline said i would have my refund by feb12. Could i end up getting it earlier?

Answer: Based on past experience I always get my money before the day they say,but only by a few days.That is if you are getting it by direct deposit.

How To Get Free Tax Prep, Filing From IRS

April 15 is approaching and you have to pay your taxes. That’s the bad news.

Question: Help me get some IRS peace of mind! To H&R Block or not to H&R Block?

I’m a nonresident alien and it’s my first year earning income here – barely $20k, part of it as a freelancer – so my situation is pretty complicated: Long 1040NR, 8843, schedule C, tax treaties… not to mention an 843 I need to turn in. And no software supports NR filing with all its nuances.

But I’m a stubborn autodidact… after 30 hours or so of tax immersion, I’m done preparing everything, but mostly fear the unknown: what if I missed something small, or big? Some people tell me not to worry, others tell me IRS horror stories… and considering my income, I don’t wanna spend hundreds of $’s on an accountant!

H&R’s “second look” service seems just like what I need… for $30 they verify your return. Can I trust them? Yahoo Answers is full with unsatisfied customers. Am I better off shelling out another $40, to get their audit&penalty guarantee?
Liz, thanks for the careless and irrelevant advertising… taxslayer, like any other software, doesn’t do NR taxes.

Answer: I wouldn’t take any kind of complex return to a storefront mill. Ever. And NRA returns are some of the most complicated returns going. The typical Block, Hewitt or Liberty “tax pro” would be clueless.

The truth is that with your 30 hours of immersion, you probably know more about NRA returns now than any 50 Block employees — and that includes the more experienced staffers a that.

If you want a review you’ll have to seek out a CPA or EA who specializes in NRA matters. Folks with that specialty tend to cluster where the work is, around schools with large international student populations and in major cities.

An EA would probably be a better bet than trying to cold-call large numbers of CPAs though, and you should be able to get a direct line to one fairly quickly through the National Association of Enrolled Agents website at http://www.naea.org/MemberPortal/ . Do be prepared for some expense, especially this late in the season, though an EA would generally be less costly than a CPA.

And don’t be too terrified with the IRS. With $20k in income you’re not a “big fish” to the IRS. If your numbers are reasonable and there are no glaring errors or mis-statements of fact on your return it should proceed through without issue.

Narberth council revisits tax hike; votes to lower it

When tax bills go out from Narberth Borough early next month, property owners will see a smaller increase than they might have expected.

Tax Day 2008

Question: Why is the IRS delaying tax refunds just because you have earned income credit?

Did my taxes on the 22nd, paid for (RAL)takes 1day.I get a call from JH. saying that my return will not be back in the 1day agreed upon.And that they didn’t know when we would get it.It was not a JH, thing and not a Bank thing. It is an IRS thing. That some people will not get there refund because of the overwelming amount of people with earnd credit. So what are we paying JH for? Why am i still being charged for a (RAL) if i’m not getting one!

Answer: Ignorance is expensive.

So what are we paying JH for? Why am i still being charged for a (RAL) if I’m not getting one!

Didn’t you read the CONTRACT you signed? No? Too bad.

You’re getting hosed in a number of different ways.

EIC can be delayed because of the high incidence of fraud related to the EIC. Poor people having babies…..not a good combination.

That’s life.

Some tax firms use loophole to grab money from poor

Rent-to-own stores offer a pricey way to buy goods, but there are equally costly ways for low-income consumers to borrow money.

Tax refunds delayed for some using online service TAXBRAIN.COM NBC12

Cheryl Etheredge testifies in husband’s defense

In a firm and largely controlled tone, Cheryl Etheredge came to the defense of her husband while handling question after question from attorneys.

Commercial Loan Modification & Cost Segregation Part 6. (How to get $ money back from the IRS)