The IRS Audit Blog

Archive for August, 2010

Question: can a non-for profit in mexico which files form 990 with the IRS issue US tax exempt receipts?

if we get a donation from the US, could we issue the donor a tax exempt receipt for his/her contribution?

Answer: Why is a Mexican non profit filing a 990? You can only deduct contributions to American charities. What is normally done is that an American non profit is formed to accept contributions and uses them to sponsor some charitable enterprise in Mexico (or Africa or Asia, wherever.) For example, I support an orphanage in Mexico by sending money to the American charity the sponsors it.

Chamber: Several county organizations at risk of losing their charitable status

Holley Urbanski, Altus Chamber of Commerce President recently heard from Christy Elkins, of the Oklahoma Department of Commerce. Both Elkins and Urbanski were surprised to find that many charitable…

501(c)(3) Compliance & Form 990 Preparation

AuctionBytes Soundoff: Letters to the Editor

In every issue, readers soundoff about issues important to them. From feedback to payment services, from fees to posting policies, AuctionBytes Soundoff gives you a chance to air your views.

6/24/09: White House Press Briefing

Question: $8000 new home-buyer tax credit applicable if buying from deceased family member’s trust?

My grandmother passed away and I am looking to purchase her house. The house now belongs to her trust, ‘the estate of …’. I will need to take out a $185,000 loan even with a down payment of over 20%.

IRS tax form 5405 states: “Who Cannot Claim the Credit” “You acquired your home from a related person. A related person includes: Your spouse, ancestors (parents, grandparents,
etc.), or lineal descendants (children, grandchildren,
etc.).”

It sounds pretty clear that if she was alive, I would not qualify. But by my interpretation of the wording, I am not buying this from my grandparent, a person; I am buying it from her trust/estate, an entity.

Do I qualify for the credit? If possible, please reference your answer. Thanks in advance!

Answer: The underlying tax law includes 267(b) and 267(c). 267(c) was limited to lineal relationships. 267(b) is below. It appears trust/estate relationships are listed every which way possible. So, no, you don’t qualify.

(b) Relationships
(1) Members of a family, as defined in subsection (c)(4);
(6) A fiduciary of a trust and a beneficiary of such trust;
(13) Except in the case of a sale or exchange in satisfaction of a pecuniary bequest, an executor of an estate and a beneficiary of such estate.

Credit Purchase Deadline Extended

WASHINGTON — Eligible taxpayers who contracted to buy a home, qualifying for the first-time homebuyer credit, before the end of April now have until Sept. 30, 2010 to close the deal, according to the Internal Revenue Service.

Applying for the New Extended Tax Credit. Michael Ackerman Seattle Real Estate.

Question: How quickly will the IRS cash my check if I mailed it on April 17th?

I sent it to the Fresno, CA office.

Answer: The checks are processed electronically now. It will usually clear the same day your return is opened at the service center or the next day at best. If your account is with a small-town bank or very small credit union it may take 2 or 3 more days.

Kids, education inspire woman to turn life around

Teresa Simmons’ life was filled with drug abuse, a five-month stint in jail and an abusive rela

National Lampoon Presents SEX TAX comes to Fresno!

Question: For Form 4506-T (IRS), what exactly is question 9 asking? ?

“Year or period requested. Enter the ending date of the year or period, using the mm/dd/yyyy format. If you are requesting more than four years or periods, you must attach another Form 4506-T. For requests releating to quarterly tax returns, such as Form 941, you must enter each quarter or tax period seperately.”

I’m not sure how I am suppose to answer this question. Is this question asking for the date(s) that I have requested for tax returns in the past? And if so, if I had never filed a form for tax return before, would I leave this question unanswered?

Here is the link just incase: http://www.irs.gov/pub/irs-pdf/f4506t.pdf

Thanks for your help.

Answer: If you’ve never filed a tax return, why are you asking for a transcript?

Put whatever year you want a transcript of the tax you didn’t file. 12/31/2007 for example.

The Work Number Bundles Services to Assist Small-Mid Tier Mortgage Banks

ST. LOUIS, Aug. 17 /PRNewswire-FirstCall/ — The Work Number®, announced it has expanded its presence within the small-mid tier mortgage banking industry. Within the last six months, more than 450 small-mid tier financial institutions have implemented The Work Number’s suite of automated verification services – allowing lenders to access pre-funding identity verification, employment & income …