The IRS Audit Blog

Archive for September, 2008

The tax deductions most often overlooked

Every year, the Internal Revenue Service dutifully reports the most common blunders that taxpayers make on their returns. And every year, at or near the top of the “oops” list is forgetting to enter their Social Security number at the top of the tax form — or making a mistake when entering those…

Divorce Advice : How to Claim Your Child as a Dependent When Separated or Divorced

The nationwide small business consultant company, Grow Small Business, held its first Small Business workshop last month at the Southfield Westin Hotel.

The workshop’s theme, Small Business “Bailout,” attracted attendees from all parts of the tri-county region.  The audience of small business owners and entrepreneurs was delighted and encouraged to learn that there are legal and financial resources available to them.  

The “Bailout” workshop planners, Dennis Nazelli and Emily Holt, arranged for experts in the fields of legal and financial affairs.  The Program Manager for Women’s Business Center, Kathi Boyle, represented the Center for Empowerment & Economic Development (CEED).  Director Earl Carruthers represented his company, Graceful Financial Solutions; and, Business Loan Officer, Derek Thornton, spoke on behalf of CharterOne Bank, the largest lender of business loans in the state of Michigan.

Emily Holt, a successful owner of her own insurance agency for 20 years, used all of her time slot to explain the many benefits of the Pre-Paid Legal Services program that protects entire families from law suits, IRS issues, Identity Theft restoration services, writing a will, contract review, foreclosures, speeding tickets, landlord/tenant issues, owning a small business, and many more issues that would normally cost a fortune if handled by an attorney from the “yellow pages.”  Ms. Holt received a resounding applause when she announced that the Pre-Paid Legal membership program only cost $1.17 a day.

The second presentation of legal resources was given by Dennis Nazelli and it centered on the explanation of the business legal plans offered by GoSmallBiz.com.  Mr. Nazelli illuminated the unique and reasonably-priced coverage of the GoSmallBiz.com plan.  It covers legal and business consultation, legal and business correspondence, legal forms, debt collection, IRS tax issues representation, contract and document review, trial defense representation, internet marketing, construction of your business website to name just the plan’s major elements.

The incredulous audience was amazed to learn that their cost for these two resources combined for under $2.00 a day.  Nazelli reminded the audience that together these two legal plans will protect you, your family and your business.  

For more information about Grow Small Business and its services go to:
http://www.growsmallbiz.biz

Community notes

• Central Ohio Technical College will hold its next Discovery Day information session on Friday, Jan. 15, in the John Gilbert Reese Center, 1209 University Drive on the Newark campus.

Surviving an IRS Tax Audit : Receiving an IRS Tax Audit

Question: IRS Form TDF 90-22.1 – Reporting Foreign Bank Acct.?

If you have a Goldmoney.com account, is that considered a Foreign Bank Account requiring completion of the TDF 90-22.1 form?

Answer: Yes, since they are incorporated in Jersey in the Channel Islands. If the aggregate value of your foreign holdings is $10k or more at any time during the tax year you must file the TD F 90-22.1 report by June 30th of the following hear.

Finance and Banking

This updates our March 17, 2010, In Brief Tax client alert discussing new proposed regulations governing the reporting of foreign bank, brokerage and other foreign financial accounts (“FBAR”) on Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts).

Related Information

Late last year, the IRS sent notices to approximately 2,000 taxpayers as part of its Employment Tax National Research Project. In February 2010, the IRS will begin examining employers specifically targeting employment taxes: FICA, Social Security, Medicare, and federal income tax withholding.

Employment Tax Audit & What to do?

Question: What are the normal and customery fee’s charged by a Tax Preparer during an IRS Tax Audit? Insurance was paid.

IRS determination was a no deficiency in income tax due but now we have to pay just about as much in Tax-Examination audit preparation & representation fees for professional services rendered. Originally we paid the tax preparer an Insurance fee to represent us in the event of an Audit.

Answer: If you purchased insurance to cover representation in an audit, the insurance contract should spell out what fees if any you are required to pay. Without knowing more about the audit and the original contract, your question can’t be answered.

How to Prepare for an Audit

You got that dreaded Internal Revenue Service letter? Don’t panic, just prepare.

Surviving an IRS Tax Audit : IRS Audit: Finding Representation