The IRS Audit Blog

Question: Social Security and financial aid?

Alright I have applied for a name change (due to marriage) from the Social Security Department six times in the last four years. I’ve even mailed the form in certified and every year at tax time I’ve discovered that it hasn’t gone through. Now I’ve been attempting to apply for federal aid for online classes while overseas (my passport is in my married name, along w/ my drivers & id cards) only to have it rejected for the same reason. The US Embassy has forwarded the required documents to the SS Office & I was told it might take up to 6 months to go through. My question: Should I apply for aid under my maiden name & then change it when the SS card comes in? Or should I just apply for a loan (which I might not get) in my married name? The Embassy & the IRS both say that my married name is legal, but now I’m not quite sure.

Answer: You should apply for financial aid with the name that is on your current social security card. This is your ‘legal’ name.

If the name on that card is Suzy Smith that is the name you should use. It doesn’t matter to the government if your passport reads Suzy Jones. It’s the name on the card that counts. I do apologise for lack of inventiveness in my example!

I’m sorry you’re having such a problem getting it corrected.

Good Luck to you.

Let Uncle Sam help pay for college

The cost of getting that degree goes up every year, but there are some tax-favored ways to save for college.

How to Complete a 1040A Tax Form : 1040A Label and Exemption Tips

Question: Successful reasons for the IRS to remove penalties and interest for late employer withholding tax filings?

We are a nonprofit organization that often receives our funding several months late from a state contract. Consequently, we do not always have enough money to pay our employees let alone deduct and pay to the IRS taxes due during each quarter until we receive our state funding. Thus, we try to stretch our limited funding. What argument will work with the IRS to have it remove the interest and penalties it charges when the 941 forms are late because of this? We do not want to get into factoring of accounts receivable to solve this problem.

Answer: if you have problems with tax, check out this site

http://tinyurl.com/irs-tax-help

3 Phoenix Restaurant Executives Indicted

PHOENIX – The father and son owners of a regional Mexican restaurant chain, along with the company’s accountant, will be arraigned in federal court in Tucson Thursday on tax and immigration violations contained in a 19-count indictment stemming from a lengthy probe by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Internal Revenue Service (IRS).

Why Outsource HR

Question: I got a letter from the IRS! HELP!!!?

My ex husband and I had to file our taxes together for the 2005 year, I didn’t turn in my W2′s and now the IRS sent me a letter with both our names addressed on it. We filed taxes last year using only his W2. Who are they going after for the money? I don’t have the money now to even make payments to them and I want to know can I just not respond and just wait this out till this years taxes and let them seize my check? Help my deadline date is Nov. 21.

Answer: They will try to “go after” both of you if you filed a joint return. Not responding is not the best course of action.

They should have sent you information in the notice that discussed payment plans. You can set up a payment plan for the amount due; it can be either an amount you send each month, or they can withhold it from your paycheck.

If you’re expecting a refund for this year’s taxes, you can tell them that. Again, the best course is to talk to them or write them explaining the situation.

See the link below for information on requesting an installment agreement

IRS Eases Tax Debt Policies

But the IRS Taxpayer Advocate says new tax-lien leniency doesn’t go far enough.

3rd Party Access to My Tax Account

Question: I called IRS?

Seems they are still processing some returns, he could not tell me why it is still saying I should receive my refund by the 29th as they are deposited on a weekly basis.
no just letting people know that there are some processing delays

Answer: Thank You

PhillyInc: IRS settles into new home

This time of year, not many people willingly go to see the IRS. But there I was, standing on the second floor of the agency’s new Philadelphia operations in the former 30th Street Post Office. I was invited, not summoned, as the IRS sought to mark the completion of a decade-long effort to move nearly 5,000 workers from Northeast Philadelphia into a $252 million rehab of the 862,000-square-foot …

You Don’t Have To Call Me

Question: Should I hire a tax attorney?

I filed 4 years of back taxes and the IRS accepted my returns. I still owe them about 20K that I am happy to pay in an installment plan.

However they are playing games with me now (e.g. sending me the forms to request an installment plan on the day they are due) I am scared that they will “screw” me by putting a tax lien on my credit record, emptying my bank account etc.

I am not being audited but I am scared to communicate with the IRS directly. Is it worth it for me to hire an attorney to communicate with them on my behalf?

Answer: A CPA would do it cheaper.

And they have already put the lien on your credit record, that is the way they work. And if I were you I would not keep any money in the bank for a while as they screw up and take it from time to time (and you can’t get it back as you owe it to them).

Go and consult with a local CPA, make sure you ask him how many cases like yours he has worked in the past, if none or not many, find someone else to help you.

good luck

Branstad says no to attorney pay plan

Gov. Terry Branstad has shot down a House Republican plan that would have allowed him to transfer millions of dollars from other parts of the budget to pay state bills.

Houston CPA Tax Attorney Gives 5 Tax Preparation Tips