The IRS Audit Blog

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Tax time! How to hire the right tax pro

Angie’s List offers advice for getting the right tax help, plus 7 more tips if you’re doing your taxes yourself

Stuart Smalley cheats on TAXES! R u going to tell me Geither, Daschle, Killefer, Solis cheat

Question: Tax forms confusion for small business owners! need help! ?

We own a small business in maine. He has 2 employees and one subcontractor. Is it correct that he needs to give the sub a 1099 for the year? Do we send the 1096 form (got it in the mail) to the IRS with the 1099?
Also we have someone do our payroll, they sent us copies of W-2s from the employees. Do we need to send them in somewhere or does the payroll companies usually do that?

Answer: Yes – you give the subcontractor his copy of the 1099, and you keep a copy, and then you mail the IRS copy of the 1099 in along with the 1096.

If they payroll company just sent you the employer copies of the W-2′s – then they’ve already mailed the W-2′s to the employees. The payroll company has taken care of the reporting to the IRS. That’s what you pay them for.

You could ask your employees to let you know if they don’t arrive.

Small-business resources

Tuesday Business Money Management: Workshop hosted by SCORE. 6:30-8:30 p.m., Palm Center Business Technology Center, 5330 Griggs Road. Cost: $10 online registration or $15 at the door. Registration: 713-845-2400 or online at www. scorehouston.org. Wednesday

Tax Tips from the IRS – PIN to be required for electronic filing (American Sign Language)

Question: I never got a form mailed to me stating the qulaifications for the irs rebate check, what doesa that mean ?

I just want a clearer understanding because i dont want to expect something and then get let down. Because my largest income was from self-employment and my total amount from federal taxes (refund) was only 1683.00 and majority was from the child tax credit from my daughter, which was 1100.00 by itself, any thoughts on this?

Answer: The fact that you didn’t get the first letter is meaningless. They’re still sending them out — my neighbor got his yesterday but I still have not.

Any rebate is based upon your tax LIABILITY before credits and (maybe) qualifying income. The amount of any refund is meaningless to the calculations.

Go here for full information, straight from the horse’s mouth: http://www.irs.gov/newsroom/article/0,,id=177937,00.html

Tax cut puts dual-earners in a pickle

Some may have to pay up when they file their 2009 income taxes.

Calculating Taxes : How to Calculate Your 2008 IRS Tax Rebate Checks

Question: How shuld i deal with this situation? thanks for all answers! ?

I have an inheritance and a trust fund. However, even though I am competent, my uncle Charles Loya travis, is over my trust fund. He made changes to my father’s will in 2001, got himself appointed as trustee and administrator of this trust. I don’t care for the family except Brett, who is a Christian and not about money. He has violated some federal, state, and local laws and used my own money to pay fr his mistakes–which he did on purpose. What should I do now? I have 2 sttorneys working on this, and they could also use some suggestions. He has evaDED TAXES, SIGNED MY NAME ON TAXES IN 2005 AND 2007-this is a feeral charge. And in addition, he has also cashed a few checks after my father died, although I warned him I woul;d reort him to the Irs, us attorney steve pence at the time. etc.Suggestions!

Answer: Hire a lawyer and report the possible crimes to the police.

Offer to Purchase up to 4,545,454 Units in AP Alternative Assets, L.P. for up to a Maximum Value of $25 Million

GUERNSEY, Channel Islands—-Regulatory News: NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION TO ANY ITALIAN PERSON OR ADDRESS IN THE REPUBLIC OF ITALY

Cash Gifting Tax Law

The drop dead date to apply to the IRS Voluntary Disclosure Program came and went, however U.S. taxpayers still can file a voluntary disclosure under the IRS regular procedures.

In 2009, the IRS and U.S. Department of Justice launched a highly publicized investigation into Swiss bank UBS AG and U.S. accountholders who failed to disclose these assets to the U.S. Government. However, the investigation did not end with UBS. It is clear that offshore tax evasion remains a top IRS enforcement priority. The Department of Justice has gone after taxpayers regardless of their assets—even those taxpayers with assets of $20,000 or less in offshore accounts

U.S. taxpayers with offshore assets and accounts are required to disclose these interests to the U.S. government on their Form 1040, U.S. Individual Tax Returns, and file a corresponding Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR). If IRS agents discover that a taxpayer has not reported an interest in an offshore account or income accruing on such accounts during the course of an audit, the IRS may impose steep penalties—including the greater of $100,000 or 50% of the offshore account balance for willful failure to file an FBAR for each account. These penalties, compounded with interest and fraud penalties, can essentially wipe out the taxpayer’s foreign assets. Additionally, taxpayers could be subject to criminal prosecution and jail time for tax evasion.

In March 2009, the IRS announced the creation of the IRS Voluntary Disclosure Program to encourage taxpayers to come forward and disclose previously undisclosed offshore accounts in exchange for reduced penalties and the promise not to refer the case for criminal prosecution. As a result of pressure on UBS and other offshore banks, thousands of U.S. taxpayers with previously undisclosed offshore accounts sought amnesty in the Voluntary Disclosure Program and applied before the October 15, 2009 deadline.

While it may be too late to apply to the IRS Voluntary Disclosure Program, it is not too late to file a voluntary disclosure under the IRS’s normal procedures. There are a number of advantages to filing a voluntary disclosure as it is far better to disclose to the IRS than to have the IRS discover you. Like the Voluntary Disclosure Program, a traditional voluntary disclosure provides taxpayers with previously undisclosed foreign accounts with a way out—potentially avoiding the most severe civil penalties and criminal prosecution.

However, care must be taken in determining whether to file a voluntary disclosure with the IRS. For example, if a taxpayer has already been investigated and contacted by the IRS, it may be too late to file a disclosure. The voluntary disclosure process is complex and sensitive, thus, taxpayers are best served by contacting a tax attorney who is skilled at resolving disputes with the IRS as soon as possible.

School foundation receives good audit report

The North Platte Telegraph After undergoing a formal audit for the first time, the North Platte Public Schools Foundation received a good report on its financial status. Details of the audit were presented Tuesday to the North Platte Board of Education.

Tips for Filing Taxes : How the IRS Selects Audits