The IRS Audit Blog

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Question: what do i do if i missent my federal tax forms to the state treasury, and the state tax forms to the IRS?

do i need to re-send my tax forms to both agencies?

Answer: you need to send them to the right taxing agencies and make sure that you get them to the right places the second time

Tax Tip: 6 facts about choosing the standard or itemized deductions

When filing your federal income tax return, taxpayers can choose to either take the standard deduction or to itemize their deductions. The IRS has put together the following six facts to help you choose the method that gives you the lowest tax.

Removing IRS & Federal Tax Liens

Question: OID, original issue discount, how to report on 2009 tax form from expired CD?

Bought a 3 year resources CD from a bank and it reached maturity in 2009 so I had to cash it out. It only made $26 in realized interest, although I had to declare a cumulative $200 in potential interest for the tax years 2007 through 2009 from the 1099 i received and I correctly filed each year. The question is where on the tax form do I enter the loss or the difference between the $26 and the cumulative unrealized tax of $200 reported in each of the three tax year forms? Or is this a loss that’s not recognized by IRS at all?

Answer: If you got a $1000 CD for a discount, that’s the source of the OID. As you paid income tax on the OID’s interest income, you added it back to the amount you paid so that when it reached maturity, you had declared all the interest.

If you bought the CD after it had been issued (eg, original discount price was $800, you paid $950), you were to adjust the interest to reflect that. It sounds like you overreported your interest income in the past 3 years.

IRS Warns of This Year’s Dirtiest Tax Scams

The Internal Revenue Service issued its annual list Thursday of the “Dirty Dozen” tax scams it has seen this tax season.

1099 MISCLASSIFICATION: It’s Time to Play by the Rules

Question: Widow of IRS employee killed by Joseph Stack’s plane is suing pilot’s widow?

AUSTIN, Tex. – The widow of the Internal Revenue Service employee killed when a Texas man crashed his plane into the agency’s office is suing the pilot’s widow.

The lawsuit against Sheryl Stack seeks to determine if her husband, Joseph Stack, left behind insurance policies or other assets, attorney Daniel Ross says.

Ross represents Valerie Hunter, whose husband, Vernon Hunter, 68, was killed last week when, authorities say, Joseph Stack deliberately crashed his single-engine plane into the IRS office.

The pilot left behind a lengthy anti-government Internet posting blaming the IRS for his problems.

The lawsuit, filed Monday, says Sheryl Stack should have warned others about her husband.

http://www.nydailynews.com/news/national/2010/02/24/2010-02-24_widow_of_texas_irs_attacker_sued.html

What do you think of this ???

Answer: It seems like a greedy woman and an ambulance-chasing lawyer got together to try to sue for more than the deceased would have made in 10 lifetimes. This is a perfect example of the need for “loser pays” tort reform. A counter-suit would be in order against both the plaintiff and her attorney. If I were on the jury, the case would be dismissed out of hand. If anything, a monetary award would be made to the defendant in compensation for grief and suffering caused by the plaintiff and her attorney.

America 2.0: How to create a true ‘new deal’

My recent column suggesting Congress should make a down payment on restoring our trust by returning the excess employment taxes workers have paid since 1984 hit a nerve. Reader mail carried messages of frustration and anger — a sense of futility a …

The Disaster At The General Accountability Office

Question: What is the mailing address to the IRS office in Austin, Texas?

I live in Texas and am needing to send my 8822 form (change of address) to the Austin location but do not know the address in which I should send the 8822 form to. Can someone give me the address? Thank you very much!

Answer: IRS
Austin, TX 73301-0023.

It’s on the form.

Do NOT use the address on Rundberg. That’s an IRS walk in office. Just mail to the service center.

Watch your wallets for tax season scammers

It’s tax time, and this year, for the first time ever the number one target for scam-artists is your tax refund.

AsiaBSDCon 2009: Internet Mail — Past, Present, and (a bit of) the Future

Personal Finance: 401(k) : Changing Jobs With a 401(k)