The IRS Audit Blog

Archive for March, 2009

Question: Why did my new car dealer require IRS Form 8300 without signature?

I bought a new Volkswagen GTI from a franchise car dealership in NJ, and one of the papers I needed to fill out was JUST my job title of IRS form 8300, for Cash Payment over $10,000. They said it was mandatory I just put my job title or they couldn’t let me drive the car away. I didn’t even have to sign it. I asked why they wanted it when it clearly says over $10,000. They insisted. What’s this about?
By the way I put $2,000 down on the car, in the form of cashier’s check. Financed the rest through a bank with their application.

Answer: IRS 8300 is used for several reasons:

1) Cash Transactions over $10,000 – this is to prevent money laundering or track those people who are engaged in illegal cash activity, ie drug dealers. Any time a dealer gets $10K from one person it has to be completed

2) The clerk of court has to fill it out if a person is on bail of $10k or more, and that bail is paid by an individual instead of a bondsman

lastly

3) any merchant must fill out the form for any transaction of ANY amount if they feel that it is a ‘suspicious transaction’. So while you only put $2k down, if they feel there is something fishy about you or the source of this money, they have the option to complete the form and bring it to the IRS attention.

So it sounds like they put you in category #3. If your down payment came from a legitimate, verifiable source (savings, bonus check, inheritance, etc) then you have no reason to worry. If you got the cash from your pimp of crack dealer, you might be scrutinized.

IRS VISITS AREA MALL TO ANSWER INCOME TAX QUESTIONS

IRS at Mays Landing Hamilton Mall – Tuesday (2/23) from 11 a.m. to 2 p.m. MOUNTAINSIDE — IRS Criminal Investigation’s Newark Field Office will be conducting an outreach initiative at several New Jersey Malls this tax season.

Major Corruption Sting FBI and IRS Press Conference Part 1

Question: How do I create Living trust without using a lawyer?

I want to understand the detailed process for creating the Living Trust and what are the Tax benefits? I’m a legal resident of the Los angeles California and have a young daughter. Want to make sure I plan for her future. I don’t have the money to go to a CPA or to an attorney. also are there any free services available?

Answer: The previous posters are correct in recommending software. However, I would suggest you give serious thought to this before you proceed. If you can’t afford a CPA or attorney, you have other issues to consider.
1) do I have sufficient assets that I need to be pursuing this now?
2) Can I afford the fees associated with following thru with this.(filing fees, transfer fees)

If you have real estate you will have costs associated with transferring it to the Living Trust. Check with your state CPA association or Attorney group and see if any free services are available. Another good source of information would be a local university. Most have knowledgeable professors on staff who could consult with you for free or at discounted rates.

Hope this helps.

Corporate Tax Returns Face Heavier Scrutiny

While the recession may be ending across much of the world, its effect on revenue collectors and corporate tax returns will last much longer.

Tax Attorney Jobs – LawCrossing.com

Question: receiving an IRS audit about stock sales?

I received an IRS letter about how stock sales were reported to them and I never filed it on my return in 2007. I just didn’t send it in because I had $30,000 in losses as a result of buying and selling stocks usually held less than a month. I am going to send them information about my losses as they requested. Since I had a big loss will I more likely owe the IRS money or get a refund or will nothing much change?

Answer: So, you got the dreaded CP2000 letter.

This is usually fixable. (Unless you got the letter months ago, do NOT do a 1040X, this just slows this down.)

Get your records showing where you both bought the stock and where you sold it.

Verify that none of these are wash sales (a wash sale is when sold the stock, but repurchased it with 30 days before or after the sale). If you have a wash sale, that loss is postponed until you finally sell the stock for good.

Then fill out the schedule D and D-1 (this is the continuation form).

Fill out the page of the CP2000 that says you don’t agree.

Send it and some to purchase records via fax to the fax number at the top of the CP2000 letter.

If you can show these are all losses, then you won’t owe anything (even if it’s a wash sale, it won’t show a gain). You might even end up with a refund.

Charles River Development Releases Version 9.1 of IMS

New version integrates OMS/ EMS into a single platform, supports high-volume wealth management accounts and unveils performance measurement module.

Surviving an IRS Tax Audit : IRS Audit: Items Not Needed

Top stories of 2009

As we ready for a new year, the Pikes Peak Courier View has taken a long look back at the year we are saying good-bye too. In no specific order, we have comprised a list of the most memorable stories of the passing year.

Colorado Springs Tax Debts Lawyer Bankruptcy CO