The IRS Audit Blog

Archive for January, 2008

Question: Does the IRS computer look at ever single form?

I did my taxes with Turbo Tax and I got the audit defense with Tax resource compan. Can they really help me if the IRS decides to audit me?
What kind of penatlies should I expect if I am audited, they find errors but they are minor?
After re-reviewing my return, I show AGI of $45k, 34k taxable, total tax payments 14k refund 6k. I had a AGI of 86k but I claimed foreign income with less than 330 days. Would this get flagged?
If I didn’t amend it, would they first try to send something in the mail? I go tmy state return already but not my federal they said by APR10 I should get it. Should I just wait to see what happens or is it mroe severe if I dont do something about it.

Answer: Whether or not every form is looked at isn’t relevant if we’re talking about an audit. In that case, yes, every form is looked at.

You should therefore assume that every form is looked at.

With audit defense, the folks at Intuit (the maker of TurboTax) will pay for an accountant to go with you to the audit. If an error is found in your taxes which was due to an error in the software, Intuit MAY compensate you.

If the error was yours, Intuit will not be able to help you.

If you make a minor error and the IRS believes it was a honest mistake, they may not give fine you more than paying interest on the amount of the error. If they feel that you were attempting to falsify, no matter how small, they COULD prosecute you. In general, this doesn’t happen so I wouldn’t worry unless you really were trying to commit fraud.

SpeedTax Investor Group Green Lights Significant New Round of Private Equity Funding

LONDON—-SpeedTax, a provider of Software-as-a-Service , fully-automated sales tax management solutions, today announced it has secured a new round of private equity funding from Committed Capital, an international private equity and advisory firm with offices in London and Sydney, Australia.

Miami Attorney on Summary Judjenent. Foreclosure Defense

Question: Should I contact the IRS to let them know that I changed my mind about filing an amended return?

I filed an amended return for 2006 to take the federal telephone excise tax, but it was sent back because I needed to include some more information. I’ve decided that it’s not worth the time for $30. So, I would just like to let it go, but do I need to contact the local office or someone to let them know that I wont be sending it back?

Thanks

Answer: No, if it wasn’t accepted and was sent back to you, if you just don’t send it in that will essentially cancel it.

A Privacy Policy That Hides Mortgage Fraud

The HR lady pulled Michael Walker into a room and told him he was fired. The reason: Talking to the FBI. It was a violation of the company’s privacy policy. “I was stunned,” Walker told me. “I could…

RP2012 – Daily HR1207/S604 -7/27/09 – Email/Fax/Phone Bomb! – Contact List

Question: Is it possible to work in an auditing firm after grade 12?

Hey Everyone! Could anyone who actually KNOWS about it tell me whether it’s possible to look for work in auditing firms like PriceWaterhouse Coopers after grade 12 that is, As Level. Do they accept such a qualification and later provide training? If not, is there any sort of work which one can do right after grade 12 without the need of going to university? Plus, is correspondence study good?Please answer!

Answer: Honestly. Most won’t unless you are actively in college and have some sort of training even if very little.

Firms under pressure from software audits last year

Phil Muncaster, V3.co.uk , Thursday 7 January 2010 at 12:46:00 Forrester report says vendors are out for every last penny they can get Enterprises came under increased pressure from software audits last year, as vendors tried to weather the recession by claiming every last penny to which they were entitled, according to new research from analyst firm Forrester. The firm’s latest report …

Liberty Tax Service

Buying Time on Small-Business Taxes

When it comes to small-business taxes, you have to pay the piper. But there are ways to delay the big bill.

Bookkeeping for the Self Employed Tracks Income & Expenses Automatically and Free

Tax-time twist-up

Tracy-based TaxBrain.com accidentally sends hundreds of tax returns to a bank in Kentucky instead of their rightful destinations.

Tell Me Why I Do – Music from The Tax Lady Sings