The IRS Audit Blog

Question: Why did we not get our 2009 house buyers tax credit?

My husband and I filed Married filing Jointly. We also bought a house last year, but it was only in my husband’s name because my credit was bad. He has not owned a house in over 3 years. We just received our tax refund, minus the $8,000 tax credit. Was told by the IRS that we would receive a letter explaining why in a couple of weeks. I would really like to know now. Any help would be great…THANKS!

Answer: The letter you receive in a couple of weeks will do the job better than any of the guesses you can expect here.

IRS worker from NH, others face tax fraud charges

Associated Press – March 24, 2011 5:54 PM ET BOSTON (AP) – A longtime IRS worker from New Hampshire is among 14 people that federal authorities accuse of filing false tax returns in a bid to…

Federal Home Insulation Energy Tax Credit 2010, 2011

Question: what is a good back tax company?

I received a Notice of Levy, both form 8519 to my residence, and form 668-W(c), with an unpaid balance of over $7,200 from my 2006 taxes. I assume that a great deal of that balance is just interest. I make less than $25,000 a year. How can I decrease this amount? Does seeking professional services really help in lowering my overall balance and payments? Do i go ahead and fill out part 3, 4 and 5 and send it to the IRS?

Answer: You can find the below information by going to the www.irs.gov website and maybe get some help with your past due income tax problem and now other problems as the IRS proceeds to try and collect the past due amounts that you now owe.
The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving problems with the IRS, or who believe that an IRS system or procedure is not working as it should. Here are seven things every taxpayer should know about TAS.
1. TAS is your voice at the IRS.
2. TAS service is free, confidential, and tailored to meet your needs.
3. You may be eligible for TAS help if you’ve tried to resolve your tax problem through normal IRS channels and have gotten nowhere, or you think an IRS procedure just isn’t working as it should.
4. TAS helps taxpayers, whose problems are causing financial difficulty or significant cost, including the cost of professional representation. This includes businesses as well as individuals.
5. TAS employees know the IRS and how to navigate it. They will listen to your problem, help you understand what needs to be done to resolve it, and stay with you every step of the way until your problem is resolved.
6. TAS has at least one local taxpayer advocate in each state, the District of Columbia, and Puerto Rico. You can call your local advocate, whose number is in your phone book, in Pub. 1546, Taxpayer Advocate Service — Your Voice at the IRS, and at www.irs.gov/advocate
You can also call our toll-free number at 1-877-777-4778 or TTY/TDD 1-800-829-4059.
7. You can learn about your rights and responsibilities as a taxpayer by visiting the TAS online tax toolkit at www.taxtoolkit.irs.gov. You can also check out the TAS YouTube channel at www.youtube.com/tasnta.
Go to www.irs.gov and use the search box for the below referenced item.
*.Taxpayer Advocate Service
*.Publication 1546, Taxpayer Advocate Service – Your Voice at the IRS (PDF 902K)
*.Tax Topic 104, Taxpayer Advocate Service — Help for Problem Situations
*.Form 911, Request for Taxpayer Advocate Service Assistance (PDF 126K)

Question: I want a job with the IRS?

I am want to work for the IRS eventually I am looking towards a tax examiner or revenue officer. I want to help people with their taxes, check to make sure they are doing it right.. I am getting ready to take tax classes so I can get some experience if they hire me part time.When I have enough classes I will take my Enrolled Agent exam. I do plan on going back to school so, I can earn my BA in accounting. I am 31 now going on 32, but I feel my plan is going to take too long and it might be too late.. Am I on the right path or am I way off? Any advise you can give me will be greatly appreciated..

Answer: It is good that you have set a goal. Taking a tax class to learn tax preparation is a good start. Going to college and taking accounting is also a positive part of the plan. The Enrolled Agent exam is not bad but it may be step down a different path than your original goal to work for the IRS. You might attempt to talk to someone that has worked for the IRS and get a good understanding of the type training and experience that would be helpful.
You must understand that the IRS is a compliance agency and your idea of helping people might not be the way most people see that agency. I have dealt with some very pleasant people there and at other time pleasant would not be the best way to describe them.

Who steals from your business? Those you trust the most.

Employee theft spiked as the economy fell apart. Victims of embezzlement say the crime is as emotionally devastating as it is financially damaging.

Transparency Through Technology: Evaluating Federal Open-Government Initiatives (Part 1 of 3)

Question: Will filing an ‘out of business’ form for my small business trigger a tax audit?

I haven’t had any business to report in over a year (I have another full time salaried job) and want to file a going out of business notification to the dept of revenue, but I am afraid that it will increase my chances of being audited, and I have not been fastidious with my bookkeeping in the past few years. I don’t write anything off and have just been reporting ‘zero sales-tax due’, but if i dissolve the company, will this be an audit trigger?
What happens if, in the future, I sell merchandise to friends or family? (my business was jewelry repair.) I still would have my wholesale accounts, so how do I report that? What about sales tax? Also, I think the word ‘jeweler’, as a profession, is a red flag, correct? Will I be more likely to be audited?

Answer: Dear Kat26: I wish all my clients were like you “fastidious”. Bravo! Do not be afraid to report items you have maintained records on and have complied with the law. I believe many people go out of business and never report anything. Remember also this year many business’s will close their doors and will never be seen again.

This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provide. Click on my profile to read more.
Errol Quinn Enrolled Agent Master Tax Advisor

Huelskamp constituents want change in DC

U.S. Rep. Tim Huelskamp, R-Fowler, doesn’t plan to start impeachment proceedings against President B …

House Session 2011-02-18 (18:02:48-19:03:56)

Question: IC taxes…?

Im currently working for a company that has me as an IC, they will be sending me a 1099 at the end of the year, even though i should be an employee. I plan to file an ss-8 later on becuase i know for a fact i’ll get fired if i do it now and i plan to be here a few more months. I wanted to what i’m supposed to do about the quarterly taxes. i only make 300/week but I dont want to have to pay a bunch of penaltys and interest come next april, and will some of the money i pay this quarter be refunded to me if the irs rules in my favor?

Answer: Put about 25% aside. You are liable for income tax and employee FICA/Medicare tax. As an employee it should be withheld from your compensation. If it is not withheld, you are still liable for it. An IRS determination in your favor means you would owe employee FICA/Medicare tax of 7.65% of your wages instead of aproximately 14% in self-employment tax.

If you get fired, take your IRS determination with you when you file for unemployment.

Sen. Debbie Stabenow addresses farming issues during Adrian visit

U.S. Sen. Debbie Stabenow said Tuesday that Lenawee  County has a “great stake” in the upcoming Farm Bill due to it leading Michigan in total number of farms and in revenue from corn, soybeans and wheat. Stabenow, D-Lansing, spoke to a group of about 30 people Tuesday at the Adrian Public Library. She is chairwoman of the Senate Agriculture, Nutrition and Forestry Committee. The gathering was …

Enter For A Chance To Win-Win With The Big Check Video Contest