The IRS Audit Blog

Archive for October, 2010

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Question: First time home buyer credit denied.?

I have been denied first home buyer credit since I claimed a mortgage interest on a time share owned by me in 2008. However I never owned a main home and claimed the credit in 2009 tax return, for property purchased on February 2010. IRS denied it but send the original denial letter to the previous apartment address which I never received. After few months I called the IRS, they verbally told me that the credit was denied. However they were unable to provide me with a copy of the denial letter which was not available with the IRS. However second amended return was send to them claiming the credit. They send me a letter saying the credit was denied due to the mortgage interest claimed in the year 2008. I was wondering whether the dateof last date for appeals should be considered for filing an appeal. The letter is dated August 2, 2010. Any inputs would be highly appreciated.

Answer: The latest denial is the date you use. Use the information in the letter to submit corrected information.

As for the timeshare, produce copies of your records showing that it *was* a timeshare. Since by it’s very nature you can’t actually live in a timeshare, you can show that it wasn’t your primary residence.

As for the use of the wrong address, didn’t your 2009 tax return show the address of the home you bought?

Consumer Groups Still Concerned As Insurance Rules Are Considered By HHS

News outlets report on new rules and pending regulations for the implementation of the new health law. The Wall Street Journal Health Blog: Consumer groups are already concerned that insurers might lobby HHS Secretary Kathleen Sebelius to weaken the medical-loss ratio rules suggested by the National Association of Insurance Commissioners last week. “Today, consumer representatives sent a letter …

IRS Commissioner Evades THE Question

Question: Judgment In Texas- received letter in mail.?

I recently fell behind on my Samuel’s card for a engagement ring and only had $200 to pay before i lost my job and after late fees the amount is now $600 and I recently received a letter from an Attorney stating if i don’t pay the amount off in full in 30 days they will file a Judgment against me.
Now ive heard different things about “Judgments in Texas online so far”.
1. they cant do anything after the judgment
2. they can Garnish from your bank account.
3. they cant garnish from your pay check- only the IRS/child support can.
But the main thing is, I want to pay what i owe but i Def. dont have the $600 this very moment since i just started working again, do i Call the Attorney office and work something out or ask to speak to Samuel’s Credit dept.
This letter was with the regular mail today.

Answer: [chuckle] What would be the point of filing a court action and requesting a receiving a court order (judgment) that you owe that amount if they couldn’t do anything after getting the judgment?

After getting a judgment against you, a plaintiff normally sends a demand for payment. If you ignore the demand, the plaintiff can go back to the courthouse and can request a writ of garnishment against you. It depends on what the plaintiff wants to attach. The plaintiff can generally go after your bank account, your pay check, your income tax return, or can place a lien against property you own.

When I’ve filed writ of garnishments, I generally go after bank accounts. But I’ve had clients who have had garnishments attach their wages and had one client who had a lien placed on her house.

If you work out a payment plan and stick with it, it is very unlikely that they will take the time (and the money) to request a judgment. And this will save you quite a lot of money, because if you make them go to court they will ask that you be ordered to pay all of their costs involved in suing you. I would call the attorney’s office first and I would offer to pay them, say, $400 to resolve this debt. If you are able to make a payment right then and there and can give them a payment schedule that you can and will stick to, chances are pretty good you can make this go away.

Mental services provider closes

A Fayetteville mental health services provider with a history of financial mismanagement shut down suddenly this week, leaving hundreds of the company’s patients and employees in the lurch.

Tampa Tax Attorney, Darrin T. Mish shares years of IRS …

Question: Whil im waiting on my 501 (c)(3) application from the IRS for my non profit…?

Does anyone know if it is legal to solicit donations for my non profit organization while I am waiting for my application to be approved by the IRS? Since the bank will not allow me to set up the account as non profit before they have an IRS letter, the donation account will not be listed as non profit…. will donations that people make be tax deductible for them if they make the donation before I have received IRS approval or is it best to hold off until I have a definite ruling. Its a non profit for deployed soldiers and my husband is currently overseas, so I am anxious to hurry up and get started helping our troops and hate this waiting game.

Answer: Do you have an attorney that’s been helping you with this? If not try to contact one, preferably a tax attorney that may be better versed in this type of thing. You can always try to contact the American Bar Association for a referral that might be able or willing to help out at a reduced rate. I tried to do a little research on this and could not get anything definitive. I would think that your tax exempt status would have to approved before you can do this. Your application could be denied for some reason such as lack of information and may seem as though you are trying to defraud people if you take donations without it. That could do more harm than good because you could risk being shut down for good. I have a brother in the military and know how hard it is for him to leave his family, and I would hate to see you jeopardize the good that you could possibly do for these soldiers. I know the red tape stuff is frustrating. I work for a 501(c) non-profit agency myself, and I get so tired of the government’s demands for stupid stuff that limits our ability to help those that really need it. I hope the approval comes through soon for you and good luck with this.

Avoiding an early SEP IRA withdrawal penalty

You could have avoided paying income taxes if you’d restructured your retirement plan to allow for a loan.

CFR JP MORGAN CHASE BAILOUT THE NWO NOT NEW 1917 new world order Lehman Brothers Goldman Sachs bailout billion trillion inflation monetary policy federal reserve fed IRS Congress Ron Paul lectures Bernanke paulson AIG SEE NWO IS NOT NEW PART 1/2

Question: how much do minors have to earn in a year to get tax returns?

she’s 16 and earns 13/hr at her job. she’s been there four months. anyone a tax attorney out there?

Answer: The threshold for 2005 is $5,000 of earned income for a minor. Anything below that and she is not required to file, assuming she is being paid as an employee (receiving W-2). The threshold is much less if she is receiving a 1099.

As orf1943 pointed out, if she is having taxes withheld from her paycheck, she will want to file anyway in order to get those back as a refund.

Marysville contractor gets over 6 years, ordered to pay $2.5 million for sales tax theft, workers comp fraud

A 54-year-old Marysville drywall contractor who admitted reporting less than one-half of one percent of the sales tax he collected on jobs has been sentenced to 75 months in prison Friday after repaying only $500 in restitution, according to a release from the state Department of Revenue.

IRS Tax Help Attorney Lucy Ludwig

Question: National City Bank rejected my tax refund because of svngs/chckng error. IRS after 1 wk does not show this.?

IRS said that my deposit was made on March 30, 2007. I called my bank on April 7th and they said that they rejected it because it was marked savings instead of checking. One week later (today) IRS still says that made the deposit. IRS tells me it could be 3-6 weeks for paper check, once they get the return back. Does anyone out there no of any creative ways to locating and tracking my return? Or how to get it quicker? Thank you for taking your time to read this question! God bless!!

Answer: If there was a problem with the direct deposit information it will reject back to the IRS , once it does the computer will spit out a check to the address that was on the return. There is nothing that you can do to speed this up. If they rejected it last week, it will actually take 3 to 4 weeks once the IRS receives the refund back.. It takes time for the money to show up back in the IRS computers, it is not an overnight process

Got Tax Questions? TurboTax Has Answers. For Free!

Taxpayers who want to plan for their 2010 returns can get a free answer to a personal tax question at www.freetaxquestion.com, starting today. The answers come courtesy of the tax experts at TurboTax®, the nation’s best-selling, No.1-rated tax software from Intuit Inc. .

It Is Tax Refund Time – Consumers Beware and Be Aware!