The IRS Audit Blog

Archive for September, 2008

Question: How much does an EIN cost if I apply through the IRS?

I believe it’s free but I want to be sure. And is it risky? I do plan on starting a business and the sba.gov thing told me to get an EIN number first. But what happens if I fail?

I plan on applying over the phone.
I forgot to mention I don’t have the business yet I’m just starting everything now..

Answer: Yes, it is free. An EIN is basically for the purpose of recording your business taxes. Just like an individual has a social security number, a business has an EIN.
If you never end up starting the business, then no worrries. It would just be like a person who did not work for that year, they do not pay taxes either.
You do need the EIN when you apply for a business bank account as well, that is probably why the SBA told you to get that first. You should pay for everything you need for your business through your business account. Keeping good records is very important.
Hope that helps in clearing things up for you.

900 Vermont nonprofits lose tax-exempt status

The Internal Revenue Service has announced that about 900 nonprofits in Vermont — out of about 275,000 organizations nationwide — have lost their tax-exempt status because they failed to file required reports. That means donations to those nonprofits are no longer tax-deductible.

America – Freedom to Fascism (Deutsch) 8von11

Question: IRS Penalties & Interest on 1040X?

I filed my taxes for 2008 before the filing deadline and received a refund. Then received another W-2 after filing deadline had passed (wife’s company changed names mid-year and sent the W-2 from old business name to an address we had 2 years ago – we did not realize we were missing a W-2). Can’t find any guidance on interest/penalties under these circumstances. Help would be appreciated.

THX
Thanks for the quick replies. My original withholdings were still enough to get a refund even with the new W-2 income added – just less than the amount of refund the IRS sent on Original filing. I double check all other information and it was correct.

Answer: There’s no way out of the interest if more tax is due but you can ask for an abatement of the penalty. Your situation is reasonable to ask for for an abatement of the penalties and if you have not requested on in the past few years the IRS will probably accommodate your request.

Tip: You should always double-check the numbers on your W-2s and compare them to the totals on your pay stubs. In fact, you should do that NOW before you file the amended return as it’s possible that the income was properly reported on the W-2 that you already received and some accounting troll somewhere screwed up and cut them again under the old company name. If that did happen — and things like that do happen all too often — the company should cancel the W-2.

Sour tone set at SEC trustees meeting

Hope that the tenor of Socorro Electric Cooperative Board of Trustees meetings might become more harmonious with three newly elected trustees on board were quickly dispelled on Tuesday, Jan. 12 — before the meeting even started.

Don’t expect businesses to change their business

Question: Did IRS Change 1040 mailing addresses?

does anyone know if IRS changed NJ’s mailing address for 1040s for 2007? I just got a document with 2 MO addresses on them and can’t find anything else anywhere. Anyone else seen this

Answer: Look at the link below. If you are going to be filing your own return yourself, you need to look in the middle column.

Don’t wait to check W-2s for accuracy

W hen it comes to W-2s and 1099s, I must admit that — like most people — I just collect these forms and stuff them in a corner until it’s time to tackle those pesky taxes.

Recuperación: Crédito Tributario de Energía – Reclámelo Enero 2010

Question: What address do I mail my 1096 form to the IRS I am located in Texas?

I have part of the address that states:
IRS center
Austin, TX 73301
I need the actual phys add or PO Box

Thanx

Answer: Internal Revenue Service Center
Austin, Texas 73301-0215 USA

What’s News for Jan. 6, 2011

Get your non-profit organization’s fundraisers and other events in the Daily Progress’s What’s News calendar free of charge by e-mailing event information to living@jacksonvilleprogress.com. The newspaper reserves the right to edit any submission for space and content. Please note religious events are only published in Friday’s Church News section.

Ron Paul on “The ED Show” MSNBC 8/12/09 – RP2012 – “Live FREE or DIE”

Question: Mailing address for 1040X along with Form 5405?

I live in Iowa, and would like to confirm the IRS in Fresno, CA address is the correct one to send the 1040X form with the 5405 form for the First Time Homebuyer tax credit?

Answer: The Fresno address and correct 9 digit zip code is *in* the 1040X instructions.

http://www.irs.gov/pub/irs-pdf/i1040x.pdf

Since it has been an issue, you did close already on the house, right?

Tax Tip: points to keep in mind when choosing a tax preparer

If you pay someone to prepare your tax return, the IRS urges you to choose that preparer wisely. Taxpayers are legally responsible for what’s on their tax return even if it is prepared by someone else. So, it is important to choose carefully when hiring an individual or firm to prepare your return.