The IRS Audit Blog

Posts Tagged ‘finance’

Question: What all is involved with the form W-2 complaint?

When the IRS issues a complaint to an employer about not sending a W-2 by Feb. 15th, what exactly do they do to the employer?

I haven’t received my W-2 from my former employer, and their phone is disconnected (they rarely paid the bills when I was there, phone, water.. and this is a Subway restaurant!!) so I have no way of contacting them. So, I have a feeling that on the 15th I will be contacting the IRS.

Answer: I would also contact Subway headquarters. They need to know what’s going on at their franchises. Include the part about lack of water!!!!

To deduct cellphone, be sure to have proof

Q. I take the cost of my cellphone and service as a tax deduction since I use it primarily for business. A colleague said I may not be able to do that any more because of some IRS rules. What’s the story on this?

RP2012 – Daily HR1207/S604 -7/15/09 – Email/Fax/Phone Bomb! – Contact List

Keeping the taxman at bay

JUDGING by the numbers in the tax authority’s latest annual report (2008-2009), the taxman had indeed been busy auditing and collecting. Across the board, there were increases in the number of cases dealt with and the amounts collected from back taxes and penalties.

Tax Deduction Tips & Advice : How to Keep Vehicle Mileage Tax Records

Question: What tax forms do I need independent contractors to fill out for my small business?

I am starting an online tutoring business and hiring my tutors as independent contractors. Do I need them to fill out an IRS forms with me when I hire them? What do I have to do accounting-wise for my employees?

Answer: 1099 R

Hospital shakes up top post

New Lower Bucks Hospital CEO Albert Mezzaroba has no formal health care administrative experience. One health care strategy expert called that unusual.

Tax Tips: Careers at the IRS – January 09

Question: How do I comply with tax and employment laws when hiring a full time housekeeper?

My father-in-law needs to hire a full time housekeeper and he wants to know if there is a resource out there that can help him comply with all IRS tax laws and department of labor laws. Also, he’s like to know if he needs insurance or any other things he should be concerned about. Thanks for the advice!

Answer: IRS Schedule H Instructions describe Household Employment Taxes:

http://www.irs.gov/instructions/i1040sh/index.html

Usually the person hired as you describe would be an employee, so your father would have to do as instructed on Schedule H. If your father hires someone from a service, he would just pay that service, no 1099 would be issued. It is unlikely that a full-time housekeeper would be considered an independent contractor/sole proprietor.

If your father needs a full-time employee to help him because of a medical condition, some of those expenses may be deductible as medical expenses. Read about medical expenses here (see Nursing Care, Home Care):

http://www.irs.gov/publications/p502/ar02.html#d0e1858

Beware of IRS’ “dirty dozen” tax scams

The IRS has issued its 2010 “dirty dozen” list of tax scams, including schemes involving return preparer fraud, hiding income offshore and phishing.

NO INCOME TAX LAW FORMER “IRS” AGENT JOE BANNISTER PART 3

Question: Filing taxes using power of attorney?

do you have to use the PoA from the IRS website or can you use a regular PoA?
Also- if I use the one from the IRS website how do i go about doing that? does it have to be signed notarized and sent back to the IRS for review? Ive read on it but its confusing….
Once I have the check after all this is settled will I be able to just cash the check myself with no problem showing proof of POA?

Answer: The IRS prefers their POA with the added wording that you were given the authority to sign the return. The POA is signed by the taxpayer and then filed with the IRS. Then you attach a copy of the POA to the tax return. If you have a different POA, you *may* be able to attach a copy to the tax return if necessary.

The refund check will still be made out to the taxpayer, sent to the taxpayer and the POA does NOT give you the right to cash it.

Arkansans Urged to Gets Facts before Buying FEMA Traile…

Arkansas Attorney General Dustin McDaniel is warning the state’s consumers about predicted efforts to resell the more than 100,000 FEMA surplus manufactured homes and travel trailers which are being auctioned by lot to brokers and other resellers.

Corporate Tax Attorney, Marilyn Barrett, Launches New Website