The IRS Audit Blog

Archive for November, 2010

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Question: Do online casino owners pay tax on [any of] the money the gambling site acquires from gamblers?

Who do they report their earnings to?

What taxing entities audit their financial activities?

Do financial institutions cooperate with whatever government entities serve as ‘home bases’ for the sites so’s to compare actual incomes with reported incomes?

For example, if an online gambling site owner is a resident of the US or UK, but the gambling site is located offshore somewhere, do the banks provide information to the US government or UK government the way they would for other citizens earning incomes from working employment inside the boundaries of the country where they reside?
Thanks LegFuJon: I’ve never played at an online casino so I’m just trying to learn. You and a lot of other top contributors here appear to be experts on the subject holding intimate knowledge of the workings, so I figured you’d know.

Gracias,

Answer: In spite of what you appear to believe, there is no reason not to think that most of these companies are totally legit companies, operating whereever it is they operate.

An online casino based in Antigua would report their revenue to the same place that someone operating a restaurant in Antigua would. I’m sorry that I don’t know all of the tax laws in every country in the world… if the company isn’t a public company… maybe no one audits their financials, maybe they have external auditors, maybe they have internal auditors.

Why would the banks report anything to the US Goverment? I doubt that’s their job.

I’m sure the company pays their taxes in Antigua… I’m also sure the tax laws are favorable, otherwise they wouldn’t set up shop there.

Egypt Trust UK Regulatory Announcement: Half-yearly Report

LUXEMBOURG–(BUSINESS WIRE)–THE EGYPT TRUST Société d’Investissement à Capital FixeLuxembourgR.C.S. Luxembourg B 55 584 Unaudited Half-Yearly Report September 30th, 2010 THE EGYPT TRUST Table of Contents Organisation of the Fund General Information Responsibility Statement Investment Policy Manager’s Review Statement of Net Assets Shareholders’ Equity Statement of Operations Statement of …

The Future of Manufacturing – Skills and the UK Government

Do I Have to File a Tax Return?

Do I Have to File a Tax Return? IRS Tax Tip 2011-02 You must file a federal income tax return if your income is above a certain level; which varies depending on your filing status, age and the type of income you receive.  Check the Individuals section of the IRS website at http://www.irs.gov or consult the instructions

How to Complete a 1040A Tax Form : 1040A Tax Refund Tips

Question: Do U believe $250,000 fine is right when lawyer made over $ 35 million over six years from immigration fraud?

NORFOLK, Va. – A Chicago Immigration attorney has pleaded guilty to helping a Virginia Beach man make millions by bringing illegal immigrants to the United States to work.

Beth Ann Broyles pleaded guilty Thursday to conspiracy charges in Norfolk federal court.

Prosecutors say as an attorney for Viktar Krus, Broyles prepared and submitted fraudulent Immigration petitions. Once approved, the documents allowed Krus to bring about 1,000 illegal immigrants from eastern Europe and Jamaica to the U.S. to work, earning him more than $35 million over six years.

Krus recently was convicted of conspiracy, visa fraud and tax evasion charges and sentenced to more than seven years in prison.

Broyles faces up to five years and a $250,000 fine during a Dec. 14 sentencing.

http://www.chicagotribune.com/news/chi-ap-va-immigrationattorn,0,3908337.story

Answer: SHould have been fined at LEAST 10% which would have been $3.5 MILLION. And the real joke is, with such overcrowding in prisons, this “nonviolent” offender will probably do 1 or 2 of his 7 year sentence.

I’d rather stone him publicly kidding

County to trim services

Nassau County residents may soon feel the effects of county budget cuts as some services are either eliminated or reduced.

Accountant, Income Tax in Virginia Beach VA 23452

Question: i have an irs question?

i am filing an amended tax return form 1040x. i am not changing anything. i am just adding the first time home buyer’s credit and the form 5405. do i have to fill in every line or just put $8000.00 on line 15 of 1040x (for single first time home buyers) and then fill out part 2.

Answer: Technically, you are supposed to fill it all in. However, the IRS knows that a lot of people are just amending to add the credit, so they will process the form as long as you sign it, put the credit amount on the form, put an explaination at the bottom of page 2, and include the Form 5405.

It may even help you to write “Homebuyer Credit Only” across the top of the 1040X. They are trying to give these special processing (much like was done with the stimulus check last year).

Certain conditions require repaying $8,000 tax credit

Q: I’ve lived in Philadelphia for most of my life. When I bought a house there in 2009, I received the $8,000 first-time homebuyer tax credit. The IRS website says you have to pay it back in “certain circumstances.”

Answers to two questions about the First Time Home Buyer Tax Credit.

Question: IRS sweating me?

I’ve become the lucky chosen victim of an audit for the year of 2006. I think my donation deductions may have tipped them off or something. Anyway, they want proof of my deductions and questioning my head of household status. Well, I can prove my deductions but I’m concerned about the head of household issue. They want to see a copy of my townhome lease agreement but my lady is on there too. Since we’re not married we of course file seperately and she files head of household also. Would that bring her in the picture to be sweated by the IRS because I don’t know if two people can be head of one household. I’m gonna just take one behind the bushes on the head of household issue and just pay that portion back if she’s at risk. What’s the JettMan to do??
Sorry for being so vague. My lady and I have a son together so she files him. I file my two other children from a much much previous relationship, which I have done for years now in agreement with the mother.

Answer: I don’t see any problem.
You and your lady both rent a townhome, and share the rent. (It is always better economically to rent a bigger apartment than renting two small apartments).
You are not married.
Each one of you supports a qualifying child. You support your two children and she supports her son. Both of you have paid more than half of the expenses of keeping a home.
So both of you can put your status as Head of household.

Clark Atlanta defends million-dollar presidential payout

Clark Atlanta defends million-dollar presidential payout

Bruce Hacker, CPA – Advice for REALTORS – S Corp