The IRS Audit Blog

Archive for July, 2008

Question: After filling IRS form SS4 for , existing stockholders decides add one more stock Holder What needs to be don

After filling IRS form for an ‘S’ election on timely basis & after Federal & state’s approval for an ‘S’ status, the existing two eual stockholders, decided to give part of their sahres to a new investor, who becomes a shreholder of an previously approved ‘S’ corporation. What the corporation needs to file with IRS & state of NJ ?

Answer: Read the instructions for the 2553, not the SS-4.

INDORE TRIP-2

Question: Algebra makes income tax easier?

I noticed on page 77, 2005 Tax Computation Worksheet—Line 44, of the instructions for Form 1040, the IRS used algebra to make the Tax Rate Schedules easier to use. Do you think other forms could be made easier to use using algebra?

Answer: Sure, but why bother? Let a computer do all the algebra and nasty little recursive and reiterative calculations. Forms 1116, 2555, 6251, and 8801 are all interdependent with carryforwards and carrybacks spanning across many years. Change one number on your Form 2555, and every other number twiggles about. Toss in a few NOLs along the way, and you’ve got yourself one heck of a maths exam. Computers can link several related tax returns together: A partnership, the partners, and their kids’ returns can all be computed (after you enter the raw data) with a single keystroke.

The IRS recognizes that the majority of complex returns are done on computer, and devises forms and formulas accordingly.

Many Tax Credits, Deductions Overlooked

Tax experts advise people to take advantage of more, bigger credits and deductions Tax credit – Taxation – Tax – ChevroletVolt – Low Income Taxpayers

Wyoming, MI – Buchholz & Associates, P.C., CPA

Question: What tax forms do I need independent contractors to fill out for my small business?

I am starting an online tutoring business and hiring my tutors as independent contractors. Do I need them to fill out an IRS forms with me when I hire them? What do I have to do accounting-wise for my employees?

Answer: 1099 R

Hospital shakes up top post

New Lower Bucks Hospital CEO Albert Mezzaroba has no formal health care administrative experience. One health care strategy expert called that unusual.

Tax Tips: Careers at the IRS – January 09

Students’ work influences new IRS rules

By Brian Reynolds Staff Writer After nearly three weeks of undercover work last January, students from the University of Alabama hoped their efforts would result in legislation regulating commercial tax preparers in the state.

Question: why Turbo tax is more expensive than Tax cut?

Tax cut premium offers every thing (state+efiling+audit defence) for about $40, but for the same features Turbo tax charges $140.
Why the big difference? any ideas?

Answer: http://www.taxbin.com/
TRY OTHERS, tax act etc

Turbo Power Systems Inc. (“TPS” or “The Company”) Announces Results for the Second Quarter and Six Months Ended 30 …

LONDON, UNITED KINGDOM–(Marketwire – Aug. 13, 2010) – H

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