The IRS Audit Blog

Posts Tagged ‘federal’

Question: Paying taxes on short term disability payments?

My husband recieved about $1300.00 short term disability payments while out after surgery. we got the 1099 form that was reported to IRS. While reading thru instructions on this It says that if HE pays for the insurance-he doesn’t have to count it as income. Does anybody know anything about this

Answer: That is correct. It is not income if He paid for it.

The IRS’s ‘Dirty Dozen list of tax scams

The Internal Revenue Service issued its 2009 “dirty dozen” list of tax scams, including schemes involving phishing, hiding income offshore and false claims for refunds. The 2010 list will be out this spring.

Question: What information needs to be filled out for the new home buyer’s tax credit?

I am going to closing next week and I want to apply the first-time home buyer’s credit for my 2008 taxes, which I already have filed of course. I understand that I need to complete and send IRS form 5405 along with form 1040X. My question is EXACTLY what information needs to be filled out on IRS form 1040X. Specifically on Line 7 of form 1040X, there’s a section for adjusting credits and liabilities . NOTHING has changed for me except I bought the house. Can I just fill out the contact information, and section A and B on the top and leave the rest blank?? Thanks!
Thanks Bostonian.. I knew it wasn’t that hard.. Dr Deth you’re a retard..any other INFORMED people with any helpful answers please feel free to contribute
Thanks

Answer: Line 15, column A = $0. B & C = $8,000. Line 23 = $8,000. In part II, a simple explanation such as “Claiming the $8,000 First Time Home Buyer Credit” is sufficient. Attach a completed Form 5405. To speed things up, also attach copies of the HUD-1 settlement sheet showing the names of the buyer and seller, the address of the property, and the selling price. Also attach a copy of the deed showing you as the new owner.

@Doctor Deth: You can claim the 2009 credit on an amended 2008 return if you wish. This is a major policy change from the past and was done in order to get the money in taxpayers’ hands as quickly as possible.

What you need to know about taxes in 2010

How can you maximize your tax return…and what should yo do if you get an email from the IRS?

Recovery: New Homebuyer Credit – November 2009

Despite financial instability, United Way officials say merger not answer

These are tough times for United Ways across the country and the battered economy is causing many to reduce costs and pool fundraising efforts by merging with neighboring organizations.The United Ways in Butler and Warren counties are expected to finalize a merger on Feb. 4, making the merger the eighth in Ohio — and 95th in the nation — since 2004. The two agencies expect to save $1.4 million …

Part 8

Question: When should I get my 1099-Misc Form?

I did some contract work for a company and to date (2/13/08) I still have not received my 1099 Form…..I have called twice and the lady claims that they do not have to have them out until 2/28/08 (or 2/29/08) she claims that because they are so busy with the W2 forms that they get an extension to send these forms out. When I told her that according to the IRS website that they were supposed to have them out the receiptent no later than 1/31/08 and they were to report them to the IRS no later than 2/29/08, I am correct….should I have it already. She is telling me also that I really don’t even need the form, as long as I have the amount and their tax ID number that I can file with just that info….is that true. What else (other than reporting them to the IRS) can I do to get my MUCH needed info ASAP?????? HELP

Answer: You should have received it by now. Your employer should have sent it to you. They are supposed to have them out by 1/31/08. You are correct. You could file without it but it’s BETTER to have the correct numbers. Also, you’ll need their Employer Identification Number (EIN) in order to file.

My suggestion is to call the person for whom you did the contract work. Ask them to send you one. If not, you could try to contact the IRS and they could send you a transcript. That’s IF they reported your income.

Call the IRS.

Hope this helps!

The Guide to Tax Filing Deadlines

The IRS not only wants their fair share of your income, but they want it on time! As witnessed by the exodus of cars at the post office every April 15th, the IRS has strict regulations and deadlines regarding small business tax filings.

How to complete a tax return with TaxBrain

Question: Anyone know of a good tax attorney in San Diego, CA area?

We are in need of a good tax attorney in the San Diego, CA area. Someone with knowledge of delinquent payroll taxes at the federal and state level.

Answer: You may want to talk to a CPA or Enrolled Agent before you see an attorney. There is a guy in San Bruno, CA who is a top Enrolled Agent and former IRS Officer. His name is Steven H. Kassel, EA. His web site is www.etaxes.com. You can find other California EAs at www.csea.org. You can find a California CPA at www.calcpa.org. I myself have written an article about the Trust Fund Recovery Penalty for 941s. You can read it at www.ezinesarticles.com. It is titled: The IRS Trust Fund Recovery Penalty: What Happens if You Don’t Pay Those 941s?
I am in Texas however.

City/County Sue Wells Fargo

While many of us were away from the office over the holidays (some of us trapped in snow storms in West Texas, but that’s a story for another day and another blog), the Memphis and Shelby County governments were finalizing some last-minute business. Last week, Memphis and Shelby County filed a federal lawsuit against Wells Fargo under the Fair Housing Act. This is something local elected …

Tax Evasion the Latest Trend?