The IRS Audit Blog

Archive for December, 2008

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Question: What would you pay for a home energy audit if it included an HVAC tune-up, CFL’s and a heater blanket?

This proposed Energy Audit is a high end service that immediately reduces the customers energy costs. Most audits only produce a specific checklist of things for the customer to change.
My proposed service includes a blower door test (to find air leaks), a furnace/gas appliance combustion test and adjustment, an Air conditioner inspection and freon top-off, Free to you CFL bulbs in all lighting locations, an installed Water Heater blanket and the report all energy auditor give.
I need an honest answer form the community of what he would pay for this service. Freelance Energy Auditors charge from $350 too $500 for a basic service. The free audits aren’t free, there refunded by tax incentives as is my service. Homeowners can through State taxes recover up to $2000 over 2 years.
You have the info, now what would you pay?

Answer: That sounds a little high in my opinion. I know that in my state the gas company offers a truly free energy audit as long as you implement the recommendations they give you. Check into whether your utilities company offers a progfam like this.

eSmartTax.com, Powered by Liberty Tax, is All New for 2010

Now more than ever, online tax filers want their refunds fast and easy. eSmart Tax’s newly redesigned website, available at www.eSmartTax.com, does just that, and more.

IRS Tax Relief Tax Help for IRS Tax Problems Wage Levy Release

Question: Is it possible to check whether an application to the IRS has been approved online?

My newly formed company applied for 501C3 nonprofit status with the IRS. where can I check the status online?

Answer: either irs.gov or enroll to taxslayer.com both are good for filing and checking the status of your ssn.

Community Calendar

Franklin Park Herald-Journal with news of Northlake 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 them to (708) 383-3678 or send them by mail …

How To File An IRS 501c3 Complaint

Question: HAS ANYONE RECEIVED THEIR STATE REFUND IN THE STATE OF NY YET?

I LIVE IN NY I EFILED 1/16 ACCEPTED1/18 IRS CHANGED MY DATE FROM 1/30 TO 2/24. WHEN I CALL THE STATE HOTLINE IT JUST SAYS MY RETURN IS BEING PROCESSED AT THIS TIME CALLL BACK IN A WEEK. IF THE IRS DELAYS RETURNS DOES THAT MEAN THE STATE WILL ALSO?

Answer: No, Federal and State are separated, but chances are if your Federal return was pulled for an error, the state may catch on to the error and try to fix it is well. Best thing to do is call the NYS Dept. of Taxation and Finance and try to get ahold of an actual person.

I’m still waiting for my NY return as well. I filed on 1/24. It’ll be two weeks tomorrow and I’m getting a little worried. Let me know if you find anything out. Good luck

ezTaxReturn.com Offers Online Tax Filing and Free e-File

ALBERTSON, NY–(Marketwire – January 15, 2010) – According to the IRS, over 31 million taxpayers used a computer to prepare and e-file their returns in 2009. This growing trend towards self-preparation and e-file of tax returns comes with many benefits including lower cost, greater accuracy and faster refunds. Do-It-Yourself e-filers also get quick confirmation of their returns (usually within …

Question: Do you need to file an IRS Change Of Address Form whenever you move, or does form 1040 automatically update it?

Answer: I agree with Wayne. I worked for the IRS for over 14 years with about 5 of them in Taxpayer Service working the Walk-In Counter in North Dallas. I can’t tell you the number of times a taxpayer would be issued a letter on a prior tax year using the address that was reflected on that year’s tax return.

Usually, the IRS will not instigate an address verification until they have a need to send a Certified Letter. They don’t want to spend the $13 on an old address.

File the 8822 form. It’s simple to complete and you KNOW it’s done. If you don’t like giving out your personal residence, then go get a PO Box at a mailbox store and use that.

I am including a link to the Form 8822.

G’Luck…

Mike Womack, Sr. Partner
Zero Degrees Tax LLP
Moore, OK

Overnight Averages

Even if your tax situation isn’t complicated, there’s still documentation the Internal Revenue Service demands. But filing your taxes doesn’t have to be an ordeal. And it can be less frustrating and less time-consuming if you have all the material at your fingertips.

How to Complete and File a 1040EZ Tax Form : How to File a Joint Payment 1040EZ Tax Form

An enrolled agent is a federally-authorized tax practitioner who has technical expertise in the field of taxation and who is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for audits, collections, and appeals.

But the more important question is not what an enrolled agent is, but rather what an enrolled agent can do for you. It’s very obvious that most people get anxious when someone even mentions tax preparation, so I want to get straight to the point.

Who They Serve

Enrolled agents serve as advisors and representatives to a variety of people or establishments filing taxes, including sole proprietorships, corporations, non-profit organizations, or any legal business entity, including international businesses, non-resident aliens, resident aliens and new immigrants.

They can prepare tax returns for an array of filers such as individuals, partnerships, corporations, estates and trusts. Because the taxation process changes every year, they must continually be trained on new strategies and procedures. Simultaneously, they are required by the IRS to have 72 hours of professional education every three years to retain their status as an enrolled agent.

What They can Offer

Tax preparations are not the only element that enrolled agents may be able to help you with. They can also help with IRS audit responses, collection matters, levies, liens and other IRS procedures.

We’re talking about trust, convenience and credibility. For some, it would be like we are handing our yearly migraine off to someone else to handle and it’s worth the price we pay for it. However, this process has also turned out to be quite a double edged sword with the potential omission of very important information. At that point it becomes a “blame-game” and things could get real ugly, real fast.

Trust and Insurance

It’s not that having an enrolled agent will solve all of the taxation problems and headaches you may have, but they are held to a higher standard than those who may be internally trained by companies or individuals that have no affiliation with the government. It’s can be a much more comforting feeling knowing that there is accountability between the US Department of the Treasury and enrolled agents.

However, even with the safeguards that Enrolled Agent Agencies and the government can set up, it is still a good idea to protect themselves as tax preparers from slip-ups that occur. Enrolled agents and agencies are able to protect themselves from litigation by purchasing professional insurance policies that protect them from accidental tax preparation errors.

How to Survive a Tax Audit

If you think there’s nothing more frightening than getting a letter from the IRS, you’re not alone, especially these days. In 2005, the IRS estimated the difference between the amount of tax money that is paid each year and the amount of tax money that should be paid, also known as the tax gap. The figure they came up with was $345 billion annually, and their concerted efforts to close that tax …

Appeals: The Appeals Examination Process December 2009