The IRS Audit Blog

Archive for April, 2009

Question: Is there a maximum charitable tax contribution limit?

We moved this year & I discontinued my home daycare and donated a lot of clothing, toys and furniture to a charity. Since we do have receipts, is there a limit, I estimated anywhere from 50-200 per trip, but I thought I had heard a few years ago there was a $500 limit, I have receipts showing 6 trips and items donated, yet I don’t want to flag an audit either. Does anyone know if there is still a maximum or advise on what I should claim.

Answer: If you contribute in total more than $500 in noncash charitable contributions, then you need to report the contribution on Form 8283. Your total charitable contributions (both cash and non-cash) is limited to 50% of your adjusted gross income. The amount above that is carried over to future years.

City of Waukee audit filed with state

Bob Eschliman, Editor Denman & Company LLP of West Des Moines has released an audit report for the City of Waukee, which showed the city’s revenues totaled $27.9 million for the fiscal year that ended June 30, a 26.5-percent increase from the previous year.

How to Avoid an IRS Tax Audit : File Accurate Return to Avoid Tax Audit

Question: IRS Rules about substantially equal premature IRA withdrawals???

Hypthetical situation: I’m 45 and have enough money in my Roth IRA to retire. Is it really as simple, as using the life expectancy table and dividing my balance by that number each year to withdraw from my Roth so I can never work again? No penalty for early distribution, and no taxes since it is a Roth?

Answer: That is generally correct. Of course, with IRS rules there are additional hoops to go through.

Read the details in IRS Publication 590 (Individual Retirement Arrangements), Roth IRAs, starting with “Are Distributions Taxable?” (starting on p. 65)

http://www.irs.gov/pub/irs-pdf/p590.pdf

Roth IRA Rules

Kim Lankford responds to more questions about converting a traditional IRA to a Roth and opening an account for a child.

Gold and Silver IRA Conversion 2009

Lawmakers push for mediation to save Minnesotans from foreclosure

There is another push to help Minnesota homeowners facing foreclosure. On Wednesday, the state’s attorney general and

Wrongful Death Attorneys in Brooklyn, New York Tax Liability Overview

Question: Can I send in a blank 8453-OL when I e-file my Federal Income taxes?

I used turbo tax to e-file my Federal and I was told a few days later that I needed to sign form 8453-OL and mail it in to finish my filing. I couldn’t print my report at the time I sent the forms through turbo tax, so when I was given this message I printed a blank form 8453-OL from the IRS website, filled in my DCN (declaration control number) and signed as instructed. Although the IRS has my information through turbo tax, is it necessary that I fill out the details of 8453-OL before I send it in?

Answer: yes it is, your signing it to verify your return…. if you used turbo tax online why dont you just sign back in to your acct and they’ll have the form for you already filled out just ready for you to print and sign

1099 MISC Software Helps Businesses Meet 2009 / 2010 1099 MISC Deadline By Providing Tools to Print, E-Mail And E-File …

With the release of W2 Mate 2009, businesses and 1099 preparation professionals now have the right tools for 1099 MISC compliance in tax year 2010. The 1099 MISC Software , from Real Business Solutions, provides all the capacities users need to create, prepare, import, share, e-mail, e-File and print 1099 MISC forms.

Blank printable 1040ez form

Question: Started a web site design company…how to pay taxes?

Hello. I started an LLC for a small web site design company. Basically, it’s just me designing web sites under this company that I created. I don’t know the first thing about how to handle the taxes for this company. Is it better to pay myself as a contractor or as an employee? Does the entity have to pay some tax on the revenues first, and then when I pay myself I have to pay income tax on those earnings? I won’t make more than $5000 per year I don’t think at this point. I read through IRS publication 15 and was more confused after I read it…any help you can give to get me started would be greatly appreciated!! I don’t know how to handle taxes at all in this situation.

Thanks,
Ben
Actually, after reviewing my documentation, I believe that I am a corporation, not an LLC. Does that change how taxes are handled?

Answer: As an LLC, at least for this year, you can pass through all of the income to a Schedule C and treat your income as if the LLC did not exist. That will have no effect on any liability protection that LLC may offer. There are other options but that is the simplest and least expensive. There may be some additional twists depending on the state in which you operate the LLC.

Dobson 2.0

The Dobson dynasty reboots with Colorado Springs’ latest conservative Christian ministry. by Bill Forman There may be no second acts in America, as F. Scott Fitzgerald famously claimed, but that’s clearly not the case in the Colorado Springs evangelical community. Last year, exiled New Life Church founder Ted Haggard returned to Colorado Springs and later began holding prayer meetings in his …

Eli Noam Ph.D (Part 2) Original air date: 11-15-96