The IRS Audit Blog

Archive for August, 2009

New York prowling for tax cheats

New York tax officials have stepped up enforcement efforts, resulting in criminal cases against tax scofflaws in the Rochester area and across the state.

Comprehensive Annual Financial Reports Exposed [Alex Jones] YT LINK – 2:04:12]

Question: classic moive, irs, bartering father, daughter that falls in love with irs man?

please, does someone know this movie
the father of this family barters for everything…then the neighbor alerts the IRS, who come to audit and collect taxes, the girl falls for the IRS man, and together they are able to save the family house by showing that the government owes the family money for horses which where taken for them during a war period…? ok i hope that included enought details

thank you so much!!

Answer: The Mating Game (1959). Debbie Reynolds and Tony Randall.

Guest Contributor Dawn Ross: No shortage of new laws for 2010

Each year brings a new set of laws for employers to comply with, and this year is no exception. Below is a summary to assist employers in negotiating the maze of new laws and to give you a preview of what else to expect in 2010.

Ron Paul You Created This Crisis

Question: IRS 1040 how to file taxes when occupation is unemployed (by choice)?

I’m not retired. But I have not worked in a number of years and every year around this time I am paralyzed by the question on my tax return about my occupation. I guess I could just write in what I last did for a job, but when I held a job, it wasn’t an occupation so much as a way to spend the day. I AM NOT A DEADBEAT! I have never received or applied for any assistance- period. My lifestyle is modest middle class. My income is derived from some smart choices I made when I was younger. My wife is employed full time and makes around $80k/yr. We do pay taxes of course, and would like to avoid being audited if for nothing other than not knowing what to write and leaving a question blank. Do I write unemployed, disinterested, unknown?!? None? Can this be left blank?
Thanks.

Answer: I work at a VITA (Volunteer Income Tax Assistance) Site and we use unemployed quite a bit with no problems.

Tax preparers are not all the same

Do you pay someone to prepare your annual tax return? If so, you’ve got plenty of company.

Question: I have received a letter from the IRS that says: We’re sending your claim, FOrm 1040x, to the Area Office for?

for review. That office will contact you within 90 days. what should I expect?

Answer: Your amended tax return is going to a human to look it over. Something was flagged by the computer as being a bit out of line, and they will check it.

Three possibilities: the human (revenue agent) will decide that the expense/social security number/deduction/exemption/whatever is OK, and you will be informed of that.

They will ask for further information to make a determination.

They will disallow whatever claim you are making, and you will be informed of that.

Tax credits for home purchases

Mortgage Minute By Delores Reeves iServe Residential Lending, LLC, Fortuna It’s the time of year for tax return filing. If you were one of the lucky homeowners who were eligible to take advantage of the $8,000 and $6,500 tax credits for the purchase of a home, I wanted to share information from a tax preparer to help you when you go to file for your credit.

Question: Do mortgage lenders verify tax documents for income proof with the IRS?

I want to try to qualify for a palm harbor manufactured home and was wondering if when I bring in my SE Tax forms from last year if they would verify them with the IRS. Is it a normal practice of mortgage lending? Or if there is even a way to do this?

Answer: Yes, they make you fill out IRS form 4506 and it may be verified with the IRS. With all the mortgage fraud in the last few years, they are verifying more and more tax returns with the IRS.

Ask real estate pro: Can I get a mortgage after foreclosure?

Louis Spagnuolo of WCS Lending in Boca Raton answers questions from readers. To ask a question that Louis may answer next week, click here.

Hope for Homeowners IRS Sting Operation