The IRS Audit Blog

Archive for July, 2008

Question: How do I comply with tax and employment laws when hiring a full time housekeeper?

My father-in-law needs to hire a full time housekeeper and he wants to know if there is a resource out there that can help him comply with all IRS tax laws and department of labor laws. Also, he’s like to know if he needs insurance or any other things he should be concerned about. Thanks for the advice!

Answer: IRS Schedule H Instructions describe Household Employment Taxes:

http://www.irs.gov/instructions/i1040sh/index.html

Usually the person hired as you describe would be an employee, so your father would have to do as instructed on Schedule H. If your father hires someone from a service, he would just pay that service, no 1099 would be issued. It is unlikely that a full-time housekeeper would be considered an independent contractor/sole proprietor.

If your father needs a full-time employee to help him because of a medical condition, some of those expenses may be deductible as medical expenses. Read about medical expenses here (see Nursing Care, Home Care):

http://www.irs.gov/publications/p502/ar02.html#d0e1858

Beware of IRS’ “dirty dozen” tax scams

The IRS has issued its 2010 “dirty dozen” list of tax scams, including schemes involving return preparer fraud, hiding income offshore and phishing.

NO INCOME TAX LAW FORMER “IRS” AGENT JOE BANNISTER PART 3

State Rep. Phil King fined $1,300 for violating campaign finance rules

The Weatherford lawmaker says he didn’t know he was committing a breach.

Legal IRS Career (Part I)

Question: What’s the difference between IRS forms(s): 1040, 1040A, & 1040EZ?

What’s the difference between IRS forms(s): 1040, 1040A, & 1040EZ? And how would I know which one I need? What is the most common of the 3?

Answer: The 1040 can be used by everybody.

The 1040EZ can only be used if you have wage income of less than $100,000 and are filing as either single or Married filing jointly with no dependents. Interest income less than $1500 can also be reported, also unemployment.

The 1040A is in the middle. It supports dependents, all filing statuses and income type, but not self-employment income, rental property, capital gains, etc.

Not all tax preparers are created equal, so choose yours carefully

Looking for help with your taxes and wondering what it might cost? The average fee in Illinois is $192 for the preparation of an itemized Form 1040 with Schedule A and a state tax return, according to a survey by the National Society of Accountants. Nationally, the average is $229.The average fee in Illinois to prepare a Form 1040 and state return without itemized deductions is $102, the survey …

Our Troubling Tax System

Question: How is Child Support Calculated in California?

I am beginning the divorce process. I have a 1 year old and will have the majority of custody. What is included in the child support calculation. I had a consultation with an attorney and she used a program to give me an estimate. She asked for both our monthly incomes before taxes? Does this factor in special need expenses like child care, clothes , living expenses and extracuricular activities. Or is it strictly based on the spouses income?

Answer: Well, you’re a little presumptuous that you will have primry if you’re just beginning. And no, its not strictly based on incomes. If it was, there would be such a high rate of mothers violating the parental rights of Fathers in California. The more you deny him access top the child, the more you get in child support.

Other items, such as what you mentioned are factored in, but not limited to them. Also your cost for shoes, clothing, and hair styling for work is also factored in, as Marcia Clark proved during the OJ Simpson trial, when she got a child support increase to cover those costs. I got a copy of the court orders just before she got a motion to seal the case file approved. So women are allowed to use non child related expenses.

As for custody, hopefully he will get joint physical or bird nest custody, but even if he got primary or sole custody, you’re not likely to be ordered to pay, and get even still demand child support. About 10% of fathers with custody in California are still required to pay child support.
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Ruling cuts in half tax lien imposed for clearing brush

An independent hearing officer has cut in half a nearly $35,000 tax lien placed on a backcountry parcel after county code-enforcement officers had the land cleared against the owner’s wishes.

Mesothelioma Facts Mesothelioma Lawyers in Oakland California

Question: Need help on how to print PDF files from online sites such as IRS forms.?

I have very little Computer Technical knowledge. I believe I have a browser problem, but not sure. I can access certain websites and request “printable pdf forms, etc.,” but only an ICON about 1/4 inch square is displayed. None of my efforts to print such items have been successfull. I have downloaded free Adobe 6.0, but still haven’t been able to print desired online product. I can print “current” webpages, but not specifically requested forms in “pdf format.” Can anyone help?

Answer: You need to have Adobe Reader which is now at version 7 downloaded and installed. Your browser will then pick this up and open any pdfs you download, or you can download the pdf, go into Windows Explorer and double click on the pdf file you downloaded, it will then open up in Acrobat Reader.

See Jill Save: Free help with tax filing

Tax time is here. If you fall into one of these categories, you can save on your taxes and have them done for free:

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