The IRS Audit Blog

Archive for December, 2008

Question: Afriend of mine won’t give me his ss# for me to file form 1099 Misc.?

During Holiday season (Dec. 2006) a friend of mine worked for me in my small restaurant. Since the amount is about $2000.00 i would have to file IRS form 1099 misc.. But over the past month i tried to contact him to give me his ss# (he doesn’t have tax id) so that i can file 1099 misc. and he would not answer my calls or return my calls. What should i do? what can i do? Am i basically screwed.?

Answer: Judy is right, classification as an employee (W-2) vs. an independent contractor (1099) is determined by the the employers control over the work. It is NOT a choice. In a restaurant, they were probably an employee, not and independent contractor. In either case, you should have had the appropriate tax documents completed BEFORE they started working. Yes, you are basically screwed.

Volunteers offer free tax preparation services

DAYTON — The Earned Income Tax Credit Coalition will again offer free tax preparation services this year at locations around Dayton and Montgomery County.The service is offered to encourage workers to apply for the federal Earned Income Tax Credit and Child Care Tax Credit.

Million Mom March: Clinton Creative Campaign Financing

Question: Is it true law enforcement officials have access to sealed criminal records?

If so, maybe you can answer this – a convicted felon was able to seal most of his criminal records except for drug dealing & gun possession charges. during past 5 yrs has relocated to another state & has new conviction writing bad checks & 3 warrants for tickets. Has been with his baby’s mother 4 yrs & during this time they both have defrauded Section 8, welfare, food stamps, medicaid, IRS, Unemployment out of a lot of money, there is more fraud too only have so much space to write here. When someone has A LOT of evidence to prove these facts to be true and makes phone calls to these agencies & a federal investigation is launched – won’t his sealed records & past criminal history be held against him along with his new charges? I was told it would be. How much trouble are these 2 people in for committing fraud against these government agencies? And what happens to her 4 kids if she goes to jail

Answer: Yes, to some extent. If preparing a new pre-sentence report for a new crime, then the report writer will certainly have those records and the judge imposing sentence will know of his entire record. There are other ways in which an investigating cop can access records as well. Furthermore, the feds have their own data base and that is not sealed by any order of any state court.

A little fiscal responsibility on everyone’s part would go a long way

A little fiscal responsibility on everyone’s part would go a long way

Rockefeller – The New World Order & Obama 1 of 2

Question: if a legal u.s. resident commits a first degree felony and is given like 10 years probation, they manage to?

stay out of trouble, keep a job the whole time during those 10 years, can they still eventually become an american citizen proving that even though they made a mistake they had a rock solid and stable work history paying taxes every single year, keeping out of trouble and hiring the very best immigration attorney that money can afford? or is it just simply a lost cause for that individual? assuming of course that they did not face prison time and that the charges were somehow dismissed. can anyone help me with this complex question? RSVP ASAP! THANK YOU.

Answer: so that how bush ; illegally got in the wight house.

Financial record of 6 Council candidates include liens

Six of the nine active candidates seeking Brian Davis’ vacant seat on the Common Council have financial histories that include one or more liens filed against them for failure to pay their taxes, bills or fines, a Buffalo News investigation has found.

The Roni Lynn Deutch Firm, America’s Best Tax Lawyers.

H&R Block, Jackson Hewitt Must Register With U.S. IRS (Update3)

The Internal Revenue Service said it will regulate the tax-preparation industry for the first time, requiring companies including H&R Block Inc. and Jackson Hewitt Tax Service Inc. to register and pay a fee.

Southwest Airlines Opens the Information Superskyway

Question: How many years does the IRS go back on Tax Audits?

My understanding is 7 years is the max due to avalibility of financial records.

Answer: My understanding is if they suspect fraud–forever. Rule of thumb is if you haven’t heard from them within 3 years from date of filing, chances are they are okay with your tax return. Usually if there is an issue and you filed your return on time, you will received a letter during the second summer after the filing of the return. In other words, letters are going out this time of the year for 2005 returns. If you made a mistake that is very obvious to the IRS, (ie wrong SS #, addition error), they will make the correction while processing your return and send you notice about that and adjust your refund accordingly or send a dunning letter.

Business license tax change takes effect today

Beginning today the state department of revenue will collect the business license tax on behalf of local jurisdictions.