The IRS Audit Blog

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Question: Tax refund delayed due to owed taxes?

I am currently making payments for federal taxes owed for the 2005 year. I recently did my 2006 taxes, and I am getting a good refund. I noticed that when you check the status of the return on the IRS site, it says, “We have received your tax return and it is being processed. Unless we find mistakes or you owe other taxes, you should receive your refund by February 27, 2007.”

My refund is going to be larger than the amount I owe. So, my first question is, will they just deduct what I owe from my refund? And second, since I owe, will it actually delay me getting my refund deposited?

Answer: Yes and yes.

Marriage status affects taxes

When you file a federal tax return, you must choose a filing status, which determines your standard deduction, the amount of tax you owe and any refund.

2007 DABC Volunteer Recognition – Incredible

Question: IRS form 8880 Credit for Retirement Savings Contributions?

Is line 2 of the 8880 the amount of box 12b Code D? All the contributions from my 401(k). Line 2 states Elective deferrals to a 401(k) or other qualified employer plan,… When I use turbo tax online it says I can not take this tax credit but H&R Block allows me to take this credit. All you tax experts out there let me know if Understand this credit. It is an incentive to save using a 401(k) correct?
I guess I have to spell it out clearer…. Am I reading the 8880 correctly. All my 401(k) contributions I put on line 2 of my form 8880? I know the income rules. I am just asking if this is correct for Example If I put $1000 in my 401(k) and I made just under $25,000 single. The tax credit would be $1000 x .1 = $100 Which in turn gives me back $100 more on my refund. Turbo Tax says I don’t qualify for this credit which I don’t understand why H&R Block allows me to take it. (Both online sites no people told me this)

Answer: “Internal Revenue Code (IRC) Section 25B provides a nonrefundable tax credit for an eligible individual who makes a regular traditional IRA or Roth IRA contribution or defers a portion of his/her salary to a qualified employer plan. An individual or married couple files IRS Form 8880 to take advantage of the credit, which is only available through 2006.

An individual bases the credit calculation on a percentage of his/her regular IRA contribution and/or salary deferral up to $2,000 each year. The credit ranges from 10 percent to 50 percent of the IRA contributions and/or salary deferrals depending on an individual’s adjusted gross income.

As a nonrefundable credit, it is only available to the extent of an individual’s income tax. In other words, if an individual determines that he is entitled to a $1,000 credit but only owes a tax of $500, the credit will zero out his tax, but the remaining $500 of credit is lost.

Furthermore, the credit is not available to any full-time student, any individual claimed as a dependent on another person’s federal income tax return, or to any individual with adjusted gross income over $25,000 ($37,500 for an individual filing as a head of household and $50,000 for a married couple filing a joint return).”

Time for a change? New rules apply to Roth IRAs

The economy has led many to take closer looks at how their retirement savings accounts are faring and, in light of new rules that took effect at the beginning of this year, some financial advisers urge consumers to consider converting traditional Individual Retirement Accounts into Roth IRAs.

Question: Can i still file a return if im being audited PLEASE HELP!!?t would you like to ask?

i recieved a letter from the irs about my 2005 return i made just under 30000 that year and got back like 2600 i was itemzed by my tax preparer now they want me to prove it or pay back plus interest 3100. I made rougly 38000 this year and they took about 5100 from me in taxes can i still file my 2008 return get that money back and make a payment plan with the irs i havent replied to letter recieved in December from the irs please help!!! and if i do get a return i claim 0 no deductions how much of that 4900 can i get back o and im also in FL

Answer: Something is wrong with this picture. IRS should not be auditing ordinary 2005 returns because the statute of limitations for assessment expires in less than three months. What is really going on?

AZ oversight agency eyes SEABHS action

The agency designated by the state to manage publicly funded behavioral health services in Santa Cruz, Cochise, Graham, Greenlee and Pima counties is on the verge of issuing a corrective action plan to the embattled Southeastern Arizona Behavioral Health Services.

IRS Help From IRS Practitioner Service

Creating a standard audit trail in Oracle Database 11g

In this article we set up and create a standard audit trail through the use of Oracle’s Enterprise Manager.

Duante’ Abercrombie: JonMChu LXD Step up3 Audition