The IRS Audit Blog

Archive for July, 2008

Question: Is this tax evasion or is it legal?

Is it tax evasion if a small business owner buys a luxury car (Mercedes, BMW, Porsche, etc.) for his kid and claims it as a business expense? Or what if the entire family claims that 100% of the miles they drive are business-related? Would this person ever be audited by the IRS?

Answer: Yes, it is tax fraud. You could call the IRS and report it, which would make it more likely they get audited.

National Tax Firm Launches Campaign Against Financial-transaction Tax

A proposed financial-transaction tax on stocks, futures, and other instruments may look like a quick and easy fix to the nation’s economic woes, but tax firm GreenTraderTax strongly disagrees, citing dangerous effects to the U.S. economy and marketplace. Its campaign to stop this tax is in full swing, and organizers are calling all traders, financial professionals, brokers, and other …

Income Tax Attorney-Stop Collections and Settle Fast

Community Calendar

Elm Leaves welcomes items for the Community Calendar as well as items for Business Briefs, Campus News, Community Briefs, School Digest and Newsmakers. Items must be received a minimum of 14 days prior to publication, but earlier is better. E-mail items to oakpark@pioneerlocal.com; fax to (708) 383-3678; or mail to: Pioneer Press, 1010 Lake St., Ste. 104, Oak Park IL …

Two Trillion Tons, Obama Parody, Dr. Evil, Federal Reserve, Treasury, IRS, Taxes, Tea Party, 16 Tons

Question: IRS audit CP2000 is that normal thing to receive in the mail?

I received a letter CP2000 from IRS, claiming that the mortgage interest were more than the amount the lender reported to IRS. I have two mortgages and I’m co-borrower for second mortgage which I paid mortgage interest in that year but that amount were not reported under my name since I’m a co-borrower. should I just send them the two mortgages Form-1098? Also, do I send them a letter via certified mail?

Answer: What V B has posted.

Just to add one quick note on the second mortgage – make sure the second mortgage has not been deducted by the primary borrower on the account.

Yes if you are responding, send certified mail with return receipt.

MicroPact Significantly Expands Federal Profile

HERNDON, Va., Jan.

Questions about the NC Comprehensive Annual Financial Report

Question: have you ever heard of National Grants?

I got a phone call from a guy who says i have qualified for a grant from the federal government. The guy said they were linked to IRS. I dont know if it`s a scam or not.

Answer: Most likely a scam. First, IRS does not call anyone to say they qualify for anything. Second, IRS is not involved in grant giving process. Third, even if you qualify for a grant, you need to apply first and pass through the rigorous process of grant application.

I suggest you do not entertain this caller and do not ever ever give any of your personal information.

News Briefs

Tax Workshop — A free How to Start Your Business Tax Workshop is slated Thursday from 1 to 3:30 p.m., at Pioneer Technology Center, Room D101. Cheryl Carton CPA is the speaker. The event is sponsored by Internal Revenue Service and Pioneer Technology Center.

Cash Gifting – IRS under Obama confirms Cash Gifting is NOT illegal, 09-09 “Cash Gifting” IRS call

Question: Has anyone notified the IRS when in a combat zone?

I posted this in the tax section and that was useless so i’ll try here:
I was on the IRS website and stumbled upon and Armed Forces link and it said you can email them your info and well then it went on to say”Working with the Department of Defense, the Internal Revenue Service identifies taxpayers who are serving in a combat zone so that we may suspend compliance actions, such as audits or enforced collections, until 180 days after the taxpayer has left the zone.” My husband is in Iraq now and owes a large amount from last year’s taxes so maybe this might give us more time to pay. Has anyone done this? What did it do for you?

Answer: just call them. My husband went to Korea and I got letters saying he needed to send in his tax returns or something from the year that he went to bootcamp ( i guess he didn’t do his taxes).. and I called him they gave him a 30 day extension because he was coming home soon. They might need you to fax something proving where he is.. in our case we didn’t have to fax anything.

Labour and Employment

This newsletter briefly discusses several recent developments in employee benefits and executive compensation that may be of interest. For more details on any item reported herein, please contact any member of Blank Rome’s Employee Benefits and Executive Compensation group.

Frostie The Dancing Cockatoo: Does His Taxes! ©Karla K. Larsson