The IRS Audit Blog

Archive for May, 2008

Question: mailing address on corporate tax return?

I’m the owner of a C-class Nevada investment corporation, and I live in Florida. My company’s registered address is currently my lawyer’s office who also happens to be the resident agent of my company.

My question is I would like the IRS to forward all correspondence to my home address instead of my lawyer’s. I need to file corporate tax return this year but I only see one set of address fields on first page of Form 1120. I’m thinking that it’s not a good idea to put down my home address on the first page since my corp was not qualified to do business in my home state. So how can I notify the IRS of the issue and possibly include two sets of addresses in my tax return? one for business location (my lawyer’s office) and another one for mailing purpose?

Thank you in advance.

Answer: Name and Address Enter the corporation’s true name (as set
forth in the charter or other legal document creating it), address, and EIN on the appropriate lines. Enter the address of the corporation’s principal office or place of business. Include the suite, room, or other unit number after the street address. If the post office does not deliver mail to the street address and the corporation has a P.O. box, show the box number instead.
Note. Do not use the address of the registered agent for the state in which the corporation is incorporated. For example, if the business is incorporated in Delaware or Nevada and the corporation’s principal office is located in Little Rock, AR, the corporation should list the Little Rock address.
If the corporation receives its mail in care of a third party (such as an accountant or attorney), enter on the street address line “C/O” followed by the third party’s name and street address or P.O. Box.

DOUBLE ENTRIES 16.1

Editorial Welcome to the 1st issue of Double Entries 2010. Just a quick “Happy New Year” as we get back into the swing of things and regular posting of Double Entries each week. We hope you all had a wonderful festive season and wish you all the best in the new decade.

G Edward Griffin – Science and Politics of Cancer 8 of 9

Question: salary auditor and tax accountant?

If hired in a Big 4 firm. What salary should I expect in my first year- or generally- if I go to audit or if I go to tax.
Thanks

Answer: This really all depends on where you are working. I would check out www.salary.com and find out what starting pay is for your area. The Big 4 tend to pay a bit below average, but the experience is worth it.

When I first started I didn’t go to a Big 4, I went straight to corporate accounting and got like $42.5 my first year. This was several years ago and I am sure it has increased a little.

Yolo treasurer says consolidated offices must be monitored closely

Nevada County will have to guard against thefts and shady assessment changes if the Auditor/Controller and Treasurer/Tax Collector’s offices are merged next week, said a Yolo County official who has been through a similar consolidation. Yolo County Treasurer/Tax Collector Howard Newens was elected auditor of the valley county in 2002 and saw his position merged into the Treasurer/Tax Collector’s …

The Other Donald Duck Tax Propaganda Film

Report Finds Snafus in IRS Installment Agreements

The Internal Revenue Service frequently establishes payment plans for delinquent taxpayers without considering whether taxpayers can afford to pay them, according to a new report.

Alex Jones Tv {Sunday Edition} 1/8:Pelosi “Buy a $15,000 Policy or Go to Jail”

IRS, states crack down on independent worker abuse

The Internal Revenue Service and 37 states are cracking down on companies that try to trim payroll costs by illegally classifying workers as independent contractors, rather than as full employees, The Associated Press has learned.

Ariane 737-800 X2 FSX Cold Startup and Irs Procedure from LTBA to LTAC by Turkish Airlines EPISODE2

US Congress enacts Home-Based Businesses Tax Savings Solutions

We are talking about tax savings laws passed by the United States Congress specifically to encourage taxpayers to actively operate a small home-based business – even on a part-time basis – with the intent to make a profit.

First, the fastest-growing business category — for several years in a row — has been Small Home Based Businesses. Maintaining continued expansion in that industry simply makes perfect sense for our national economy.

Second, unemployment puts a tremendous strain on the economy, and the leading job-growth category, again, is Small Home Based Business. Job growth = less unemployment = stronger economy.

Third, if every taxpayer had a part-time home-based business as a “fall back” or “safety net,” a signifigant layoff by a major employer would have less of an impact on the economy.

You are about to get a map to a lot of “information” i.e., small home based business tax savings that are 100% IRS-compliant, easy to qualify for, and simple to document.

Most taxpayers (and most professional tax preparers) are clueless about these small-business-friendly tax savings, for a variety of reasons:

· The media gives very little publicity to these laws,

· Small-business tax law is not part of the ciriculum in most accounting schools,

· Knowledge of small-business tax law is not tested on CPA exams,

· IRS “publications” focus mostly on what you cannot deduct, not on what you CAN.

Here’s how your business can qualify for Small Home Based Business Tax Savings…

In order to be in compliance with the IRS,” you must:

1. Be able to Prove that you Intend to make a Profit.

o Write a Business Plan

o Estimate when you expect your business to become profitable

o Continually work to improve and expand your business

2. Tend to your business on a Regular and Consistent basis

o Regular and consistent activity is much more important than the number of hours.

o As little as 41 hour, 4-to-5 days a week is sufficient for the Tax Court

o Document your business activities in a day planner with ledgible notations.

3. Maintain Accurate Records

o Document All Business Income

Deposit all business income into a Business-only checking account

Keep a running log showing, for each check received:

Date received
Amount received
Source of income (company name, etc.)
Purpose of income received (i.e., Products Sold, Commissions, Bonuses, etc.)

o Document All Business Expenses

Use a business-only checking account for all business expenses
The purpose is to keep personal funds and business funds from co-mingling.
Use one or more credit cards exclusively for business expenses
Keep from co-mingling personal and business charges
Interest and fees on business-only cards are Tax Deductible.

o Document All Your Business Activities

A Daily Record is acceptable documentation(IF it is accurate and complete)
Show regular and consistent activity(as opposed to sporadic, inconsistent activity)

In my next article I will discuss what exactly you are able to deduct to take advantage of operating a small home based business for maximum tax savings.

What Should you do Next? Join the Savings Highway today and reap the many tax saving benefits the were specifically enacted by Congress to keep the United states Economy Strong.

IRS steps up its scrutiny of paid tax preparers

Just as tax season is kicking off, IRS Commissioner Doug Shulman has announced a major initiative that would require paid tax preparers to register with the IRS, be tested for competency and take continuing education courses.

Jim Putman–conversations with the IRS