The IRS Audit Blog

Archive for January, 2011

Question: Is there any way to delay repaying money to the IRS? ?

I got a notice in the mail today from the IRS that I made a mistake in my taxes last filing and I owe them some money. Its not tons, but its a whole lot to me. This comes because of an honest mistake (got forms late in the mail that I didn’t know were coming, and I had already filed that year). I always meant to sent in an amendment, but just kept forgetting. Anyway, they say I have to respond by February. I can’t dispute it, but is there any way to put it off so they don’t take my refund this year? I really need the money to catch up on bills.
Sorry, didn’t think about this..no state taxes, I live in Texas. Thank goodness, one less thing to screw up.
1 more thing: be kind. I made an honest mistake due to a rather complicated year (bought a house, exercised stock options, etc). I had no intention to defraud. It sucks, but it can happen to anyone.

Answer: First of all, as long as there is a balance due on your account, your refund will be used to pay down that debt. Also, penalty and interest will continue to accrue until the balance is paid in full. Unless you full pay the balance before you file your tax return, don’t count on getting your full refund.
To set up an installment agreement, there is a one time user fee of $105.00 (See IRS Form 9465). The IRS does offer an extension of time to pay of up to 120 days, without having to pay the fee.

Senate Republicans Fail in Attempt to Repeal National Health Care Law

Feb. 2, 2011 – Senate Minority Leader Mitch McConnell, R-Ky., introduced an amendment to an unrelated bill today that would repealed the health care law. Senate Republicans, however, failed to muster enough votes to repeal the law.

$8000 Home Buyer Tax Credit

Question: Misuse of social security numbers linked to debts?

I have a friend who attended nursing school funded by a local city agency. She last attended school in 1986. Sometime in 2001 she was contacted by a debt collection agency trying to collect on a debt for someone with the same name, social security number, but different school as well as different date of attendance being 1991. Because the debt was about the same amount, she thought it was hers and didn’t demand verification. Also, she wasnt’ at that time very consumer savvy on her rights. Because she made a payment, the agency attached her tax return on subsequent filings thereby involving the IRS at this point. She is on welfare and cannot afford legal counsel, but I know she’s entitled to free advocacy through the system. Who should I hit up first? There are about a thousand choices out there.

Thanks,

Debra

Answer: Debra:

It’s difficult to answer this question, because it’s not clear who funded this loan. If the US Department of Education was involved, as either the maker of the loan, or the guarantor, they would be the first choice for your appeal, starting, perhaps, with the Ombudsman’s Office at the Department.

However, you mentioned that she attended school “funded by a local city agency”, so that makes it sound like the Department of Education had no role in the financing. If that’s the case, the Department would most likely refuse to get involved.

Obviously, you’re going to run up against additional obstacles related to the age of this loan – I’m wondering if this “city agency” is even in existence any more, let alone the program that the loan was made under.

There are a lot of issues here, and to really identify the right resource, anyone trying to help you would really need to know more of the details.

For example, there is a statute of limitations on the collection of many kinds of debts – at most, it’s 20 years if the creditor obtained a judgment. However, changes in the bankruptcy laws a few years back made student loans a whole different kind of animal from other forms of debt. I imagine that this debt qualifies as student loan debt, but I’m not sure, without knowing the details.

For one thing, by now, your friend should have filed a police report. You’ll need documentation to “fight” this misdirected claim, and that’s the first step. Given the complexity and the lack of details, I suppose the next logical step would be to contact the Consumer Affairs Department for your state. Lawyers at that agency should be able to provide you with the best possible advice about how to substantiate your fraud claim, and how to most effectively work with the collection agency to call off the sharks.

I’m sorry I couldn’t give you a more specific answer, but I wish you the very best of luck. With enough perseverance, I am confident that you will get this resolved. Thanks, also, for being such a good advocate for your needy friend.

IRS Issues New Phone App To Track Refunds

For people who just can’t enough of the Internal Revenue Service, the federal tax collection agency is coming out with a new phone app.

Crazy Debt Collector Answering Machine Message

Question: Tax, easy,read it perhaps you know the solutions.?

This person paid me in buisness checks instead of empolyee check so therefore i was not able to see what kind of taxes i have paid. Also in W4 form when i filled out i claimed either 0 or 1. Thats what i was doing for any of my past jobs and the employers were dedacting the right taxes. Now two years later IRS has sending me a letter saying that i have to pay 1000 dollars for not filing the tax for that job plus some penalty. I never received W2 from the guy so i thought he never claimed me as an employee. What should i do . This guy is fraud also , recently he sent me W2 by my request and i asked him to send my W4 as well . He said he sent it and it’s lost in the mail. That was 2 days ago.
I wanna be nice to him cause he helped me , giving me job when was no jobs. Also what if he took advantage of the situations. he never reports his taxes for the store the right way . he lies to IRs and makes most of his money from that. In only one year he was able to buy two other stores

Answer: Why be nice to this employer when in reality he wasn’t nice to you, he took advantage? Employers are required by law to provide a detachable check stub or separate document detailing payroll deductions. If he did not do this, file a complaint with the labor board. They will require him to pony up the info and this will provide you some pretty good documentation for the IRS that in good faith you trusted taxes were withheld and remitted and they need to go after the employer.

I had a similar problem with someone who helped me out a great deal and to whom I am grateful, but he just didn’t do the payroll correctly, and he didn’t pay overtime, he only paid “a little extra” and didn’t detail deductions. Stand up for your rights. This isn’t a mess of your making.

Payroll Form 941, 940 Filing to IRS and Mailing of Form W-2, 1099-misc to Recipients are Due January 31st, 2011

http://www.eSmartPayroll.com provides flexible, convenient, online preparation and filing of payroll forms to the IRS, SSA and States. Users pick and choose any applications to prepare and efile payroll returns. No software to buy and print on plain paper. Milpitas, CA (Vocus/PRWEB) January 24, 2011 C&S Technologies, Inc., an IRS and State authorized online payroll and …

Question: i am recieving the stimulus rebate check. can i track it useing the where’s my refund on the irs website?

Answer: no they dont even issue this check till may and then it will delivered to you in the way you got your tax refund..and here is the website that says the same thing basically

http://www.irs.gov/app/espc/

TaxWatch: Tax tips for February

Here’s what you need to get done this month, to be sure you’re ready to file your tax return on time.

SONG COVER Hana Project Naichau Kamo 2010 Ver.

Question: Need help to choose the area of choice for KPMG Graduate Recruitment Programme?

i have recently completed my degree in accountancy, and want to apply for the graduate recruitment programme. i am very confused about career choices…like i need to choose a specific field which could be either auditing or business performance services or tax or internal auditing….i am not sure what kind of future opportunities they hold. i have been an above average student,like i have a few HDs and Ds and some credits…..i am really confused and if someone can guide me. i will appriciate the valueable suggestions. i have checked the kpmg website but still could not decide. plz help!

Answer: Give the HR people a call and ask them about the different streams. Put your name through and speaking to them will enable them a better chance of remembering your name down the line.

I know this might seem a bit scary but trust me, HR people in big companies are usually very friendly and would be very impressed and happy to give you more details about their programs.

Also, KPMG attends annual career fair days. They should be holding them now (if you are in Australia). Check their website as they should have all the dates up. Go to them and speak to their reps.

Either way a quick 5 min call will go a long way.

Very best of luck – i know it is a confusing time in your like. Relax – you can always move cross function within a big company after you’ve got your foot in the door.

Russ is Chosen as Acting Superintendent for East Aurora Schools

The East Aurora School Board voted 6-0 on Wed., Jan. 12 to named Brian Russ as acting superintendent effective Feb. 19. Russ, who has been serving as the district’s chief information officer, will take over for Superintendent James Bodziak, who has accepted a post at the Frontier Central School District.

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