The IRS Audit Blog

Archive for November, 2007

Question: If gambling, does all winnings get reported to the irs?

i havent had a job yet so ive never had to fill an irs form out. will i have to if i join a betting site?

Answer: No, these are off-shore companies that report nothing at all to the IRS. If you cashout sums greater than $5,000 directly to your bank account, then your bank will report that activity to the IRS. Keep your withdrawals small or offshore as well and you will have no problems. If you do make a huge withdrawal then simply claim is on your taxes at the end of the year, but you can claim your losses against it.

Rife with myth

People believe in some pretty incredible things when it comes time to pay federal taxes. (Don’t be one of them.) The U.S. tax code is massive and complicated – the perfect fodder for myth-making.

Question: Is it possible for one to send an offer and compromise to Irs for back taxes “on there own”?

I owe a substantial amount of back taxes and just recently started a job that is taking taxes out and would like to settle my back taxes with the IRS. At this point I have no garnishments but a few tax levies on credit report. Is it recommended that I use a high cost tax attorney or is this a battle i may be able to accomplish on my own?I realize I only have one chance to send in an offer and compromise but what does an attorney do for me that I couldn’t??

Answer: Yes, you can apply for installment plan or offer in compromise. You do not need attorney. You can use a tax professional who has experience in such jobs. You can download the forms and go through it.

This is offer for compromise Form 656A. An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed. If the liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC.

Read http://taxipay.blogspot.com/2008/04/list-of-articles.html

Santa Rosa Commissioner accused of business misdeeds

The State Attorney’s Office has referred wide-ranging allegations about improprieties at the auto business of Santa Rosa County Commissioner Bob Cole to the Internal Revenue Service and other state and federal agencies. Former employees of Bob Cole’s…

Pawning the IRS!!

Question: has anyone claim insolvency on form 982?

I received a debt cancellation from a creditor that i settled with and needed to fill out form 1099c..then i filled out a 982 with h and r block online. my liabilites were wayy more than my assects prior to the settlement. do you think the irs will approve the insolvency or do i need to seek a professional to be sure?

Answer: Did you fill out the insolvency worksheet in publication 4681? Did you attach it to the tax return? What did you attach for the tax attribute reductions?

Home Finance Corner – tax credits for loan forgiveness

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Canceled Debts & Foreclosures

Question: Our property was foreclosed in 2000. Should we have been charged state, city taxes and attorneys fees.?

If we weren’t suppose to be charged how do we rectify. The property was located in Texas.

Answer: A lender which forecloses will charge you attorney fees to process the foreclosure, plus taxes on the property until the day the lender becomes the owner.

The lender is correct, and you go not get to rectify, sad to say.

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