The IRS Audit Blog

Archive for September, 2008

Question: To determine if an organiztion is a charity, look for pub. 78 on the IRS Web site.?

In addition, you may verify an organization’s tax-exempt status and eligibility to receive tax-deductible charitable contributions by asking to see an organization’s IRS letter recognizing it as tax-exempt. You may also confirm an organization’s status by calling the IRS (toll-free) at 1-877-829-5500.

You may download the electronic version of Publication 78. The download file is a large compressed file, from which you may extract a very large delimited text file. Opening the file using word processing software may prevent formatting/appearance issues that may be present if the file is viewed with a text editing program.

Answer: If we’re just sharing info,,,, CIR 230 is finally out of back order… get ‘em while they’re hot and keep your nose clean and shinny!

Five tax season tips for New Jerseyans

While the tax filing deadline is about three months away, it always seems to be here before you know it. Here are the Internal Revenue Service’s top five tips that will help your tax filing process run smoother than ever this year.

Question: How come “”quarterly” est tax payments aren’t all 3 months?

The 1040_ES forms are due Jan15,Apr15,Jun15,Sep15. That’s 4months, 3 months, 2 months, or 3 months, instead of 3 months each. Why does the IRS define “qaurterly” as 2 months or 4 months?

Answer: The April 15th payment isn’t due in March because many taxpayers use there prior year return (due April 15) to calculate estimates for the following year. The final payment isn’t due until January, which allows taxpayers to take into cosideration all income for the year, including investment income which often happens in December.

Brian J. O’Connor: It’s time to check your paycheck

If you just got your first paycheck of the new year, don’t be surprised if the bottom line looks a little lighter.

1173-UCC #21***Much Love wrap up for UCC-1 Financing Statement: UCC-1 vs 1099OID-Rodger Elvick

Question: IRS Form 1040?

For all the constitution fans out there and irs assemblage does this have any merit to it? Hard Evidence That Form 1040 Has no Legal Basis In Law.

Please explain this to me.

ttp://www.givemeliberty.org/RTPLawsuit/Update2005-05-21.htm

http://www.givemeliberty.org/RTPLawsuit/Update2005-05-21.htm

Answer: IRS Identifies 40 Frivolous Positions for Taxpayers to Avoid

IR-2007-61, March 15, 2007

WASHINGTON — The Internal Revenue Service today issued guidance identifying dozens of frivolous positions that taxpayers should avoid when filing their tax returns. The guidance lists 40 positions which have no basis for validity in existing law or which have been deemed frivolous by the United States Tax Court or other federal court.

If these or other frivolous positions are contained in a tax return, taxpayers could face a $5,000 penalty – 10 times the previous maximum.

“People should remember they are ultimately responsible for what is on their tax return even if some unscrupulous preparers have steered them in the wrong direction,” said IRS Commissioner Mark W. Everson. “The truth about these frivolous arguments is simple: They don’t work.”

In 2006, Congress increased the amount of the penalty for frivolous tax returns from $500 to $5,000. The increased penalty amount applies when a person submits a tax return, or other specified submission, and any portion of the submission is based on a position the IRS identifies as frivolous.

IRS Notice 2007-30 contains a list of frivolous positions that will trigger the increased penalty amount.

Four revenue rulings issued in conjunction with the notice address specific frivolous claims often made to the IRS. The revenue rulings center on:

False arguments that wages are not taxable income.

Filing returns and paying taxes are voluntary.

The IRS must provide taxpayers with a summary record of assessment made on a Form 23C, “Assessment Certificate-Summary Record of Assessments”, before overdue taxes may be collected.

Income is not subject to taxation when the taxpayer declares that he is not a United States citizen because he is a citizen of an individual State or claims he is not a person as defined by the Internal Revenue Code.
The revenue rulings emphasize the adverse consequences to taxpayers who fail to file returns or fail to pay taxes based on an erroneous belief in any of these frivolous arguments.

Additional information about frivolous positions is available on the IRS website at IRS.gov. “The Truth About Frivolous Arguments” is a 64-page document updated in December 2006 that addresses false arguments about the legality of not paying taxes or filing returns. The document includes citations from numerous cases decided by the courts and responds to 40 frivolous contentions.
The courts have not only rebuked these arguments numerous times, but also have imposed thousands of dollars in fines on taxpayers or their representatives for pursuing frivolous cases.

“Our rulings on frivolous arguments emphasize that the IRS and the courts reject these arguments about the validity of the income tax and ‘too good to be true’ schemes to eliminate tax liability,” said IRS Chief Counsel Donald L. Korb.

The IRS continues to investigate promoters of frivolous arguments and to refer cases to the Department of Justice for criminal prosecution. In addition to tax and interest, taxpayers who file frivolous income tax returns face a $5,000 penalty, and may be subject to civil penalties of 20 or 75 percent of the underpaid tax. Those who pursue frivolous tax cases in court may face an additional penalty of up to $25,000.

Related Items:

Notice 2007-30
Revenue Rule 2007-19
Revenue Rule 2007-20
Revenue Rule 2007-21
Revenue Rule 2007-22
IR-2007-30, Fraudulent Telephone Tax Refunds, Abusive Roth IRAs Top Off 2007 “Dirty Dozen” Tax Scams

FYI

good luck

IRS Offers Last Minute Tips For Filing Taxes

With the April 15 tax filing deadline right around the corner, the Internal Revenue Service offers Tennesseans who have not yet filed a few last-minute tips.