The IRS Audit Blog

Archive for April, 2009

“Fur Ball” More Glamorous Than it Sounds

A big, extravagant event drew in thousands of dollars for some of our smaller friends.

Country Club Creek For Rent – AUSTIN, TX

Question: IRS Tax Question?

for the 330 day exemption rule, what happens if you only stay out of country 300 days. Does the IRS communicate with Customs?
I basically lost my job after 10 months. So, now I have to pay taxes on what I made. Being that I lost my job, am now living off the little I had.

I know the IRS is necessary, but I don’t think people should be put in prison if they can’t pay taxes.
I basically lost my job after 10 months. So, now I have to pay taxes on what I made. Being that I lost my job, am now living off the little I had.

I know the IRS is necessary, but I don’t think people should be put in prison if they can’t pay taxes.
I basically lost my job after 10 months. So, now I have to pay taxes on what I made. Being that I lost my job, am now living off the little I had.

I know the IRS is necessary, but I don’t think people should be put in prison if they can’t pay taxes.

Answer: You talking about the Foreign Earned Income Exclusion Rule? The IRS may never contact with the Customs in your lifetime. Then you’re lucky. However, in case, if you’re audited, can you back up the info you provided? Business expenses, home office expenses, foreign income and EIC are some of the popular triggers of the IRS audit. If I were you , I would just do things according to the IRS Rule! The result would be a peaceful life.

http://www.irs.gov/businesses/small/international/article/0,,id=96968,00.html

Two Years Of Better Ghana Agenda

Its two years since the Better Ghana Agenda and a time to take sober reflections of the stewardship of President John Evans Atta Mills and his Government. The good people of Ghana trusted the National Democratic Congress (NDC) and so voted it in 2008 into power.

Question: Everyone needs to read this…….what the hell?

In the health care reform bill-Section 431(a) of the bill says that the IRS must divulge taxpayer identity information, including the filing status, the modified adjusted gross income, the number of dependents, and “other information as is prescribed by” regulation. That information will be provided to the new Health Choices Commissioner. Is this not a violation of the Privacy Act? Thousands of Federal employees will have access to these records. That’s alot of opportunity for abuse. And what the hell is a “Health Choices Commissioner”?
Check out the link:

http://www.cbsnews.com/blogs/2009/08/26/taking_liberties/entry5268079.shtml

bash—cbs is no legitimate source? did you even read the article?….it names the SPECIFIC pages and sections of HR 3200.

Answer: I think “Health Choice Commissioner” sounds like a bureaucrat who would soon morph into a Death Panel Czar.

Requiring the IRS to provide a Health Choice Commissioner with sensitive personal information would be an egregious violation of our privacy rights. It would be a violation of the Constitution, not just some statute. If a woman’s right to have an abortion is based on her right to privacy, then a person’s right to live or die is also a privacy right.

If a proposal like this is reduced to a bill in Congress, there will be hell to pay. It will create a firestorm of anger and protest among every segment of the population. There will (IMO) be no division of liberals and conservatives, rich and poor, or black and white et al.

Obama recently said there will be nothing in any health care reform bill that will provide any government bureaucracy with the ability to make life and death choices for our citizens.

If Obama tries to slip this proposal through, or if he signs an executive order to permit death panels after the fact, he will be toast.

If Obama wants to save money by eliminating the elderly who no longer make a positive contribution to society, why doesn’t he also eliminate all infants and welfare recipients, neither of which make a positive contribution to society? I am being facetious, but no one seems to know where this guy will draw the lne.

Americans slow spending on health care

A decades-long boom in spending on doctors, hospitals and drugs slowed in 2008 to its lowest level, even as health care costs accounted for a greater share of the nation’s economy, the federal government said in a report released Tuesday.

IRS will have access to your health care information

Question: IRS Determining “contractor vs employee”?

I worked for a company for 15 months as an Independent Contractor. No taxes were taken out and no insurance was offered.

In that time, I was treated and represented to everyone inside and outside of the company as an employee. I even had managerial responsibilities. Reading up on the issue, I was definitely ‘a common-law employee’

I’m looking to hear from others who have successfully challenged their classification – from Contractor to Employees -by filling out the IRS SS-8 form.

How long did it take to resolve the issue? How long did it take the IRS to render a verdict? What were your next steps after the IRS ruled in your favor? Was other legal remedies considered to right this wrong?

What can I expect?

Thank You

Answer: I think this is one you chalk up to experience. If you did not know the tax consequences attendant on status as an independent contractor, shame on you for not exploring the question sooner. You had 15 months!

In general I would prefer to be an independent contractor, the tax benefits are better, especially the way deductions for expenses are determined for contractors versus employees. But you have to take into consideration the fact that you receive no employee benefits and must cover your taxes from your gross income. Adjust your rates accordingly to provide for the things you don’t get as an employee.

That said, if the IRS does determine you were an employee you would be entitled to a refund of the self-employment taxes you paid if the determination is made and your claim for refund is filed within the statutory time frame (generally, three years from the due date of the subject return).

You might precipitate that determination by filing an amended return (Form 1040X). In that return claim a refund of the self-employment taxes and give a detailed explanation of why you think you were an employee and not an independent contractor. Do a little research at www.irs.gov for information on how the IRS looks at the question and tailor your explanation accordingly.

If you’ll feeling real aggressive you could also claim a refund of the income taxes you paid claiming that what you were paid should be considered as your net income after withholding for income, FICA, and Medicare taxes. And, since you were an employee, payment of those taxes were the responsibility of the employer.

Have fun! You could pull it off with determination and perserverance.

IRS will begin regulation of paid tax preparers

Paid tax preparers will have to register with the federal government, pass competency tests and follow ethical standards under rules that will take effect sometime after the current filing season, Internal Revenue Service…

1099 MISCLASSIFICATION: It’s Time to Play by the Rules

Communities to businesses: Pony up jobs or return tax breaks

CHICAGO — Cash-strapped communities have a message for corporations that promised jobs in return for tax breaks: A deal’s a deal.

Audit paints mixed job creation picture