The IRS Audit Blog

Posts Tagged ‘government’

Question: What is the minimum income to report it to the IRS?

Sorry, the question is pretty vague. I primarily work one job, in 2006 I took on a new job just to make a few extra bucks, I worked there for two hours then quit. After Social Security and Medicare were deducted, I made a total of 13.85 on the one paycheck I earned from them. No Federal or State taxes were deducted from my check.

The question is, do I need to report this income to the IRS? I need to file a tax return NOW and I’m tired of waiting for this W-2 to come in the mail. I have to file quickly because I am starting school and need to file a FAFSA.

Answer: Technically you don’t have to file because it’s such a low income. As far as your FASFA they want the tax returns of your parent or whom ever claims you as a dependent. If you are independent then you woul need to file that 13.00 and to include other sources of income(they know you can’t live on $13 alone).

Seniors can’t bank on jobs

This story was originally published on April 9 as seniors in Tony Plath’s commercial banking class were preparing to graduate and hunting for jobs.

Custom Paint job for my 2003 saturn ion

Question: would like to know if I need to file Form 5500?

I am looking for answer on whether I need to file form 5500 for my company.

The company only has 1 employee, me and I am the owner.
I have 401k plan which the company contributes to. The account is less that the 250K ceiling.

The document on the irs website is confusing.

Please, can someone help me out? Thanks.
This is a new company. So far its just 1 employee. In the future, if the company expends, then we need to re-visit this.

So, from the reply so far, it looks like I do not have to file F5500 for this FY. Please correct me if I am wrong. Thanks.

Answer: It really depends on the situation like does the company hold assets for ex employees, total assets and what not. Its sounds like you can definately file the form 5500 EZ which should make it easier.

As a practical matter you shouldnt be doing any of this. so long as you dont intend on having any more employees you should be doing a single member 401k which is just in addition to your SEP (Self employed Pension Plan) It lets you put in 15.5 K on top of approx. 25% of your net income up to 42K which requires no filing.

How To Implement a Profit Sharing Plan

A smart CEO understands that employee performance is tied directly to how vested they feel to the company they work for. That’s why many companies have begun to consider profit sharing plans, because they can be a powerful incentive for employees to work harder for the company and gain a sense of satisfaction from knowing they’ll all get a cut of the profits. It’s also likely that the added …

Question: Need help with 2009 filing options?

So I went on IRS.gov and there’s so many pages of information that seems like it would take years to read. This is my second time filing taxes but first time looking at others forms then the 1040EZ. Does anyone have suggestions for what other forms and filings and I should look for? I’m going to a Private College and taking out loans for it. I drive (I’m not sure if that mileage is tax-exempt). I made about $20,000 last year. I just had a child but am not married. I live under my parents house but am over 18. I bought a car earlier this year and paying off the loan.

Answer: The college issues:

You may be eligible for the Hope Credit, the Lifetime Learning Credit, or student loan interest (read the qualifications first, Chpt 19, p133 on the Pub 17, link below).

The other issue is who can legally claim your exemption. If you are a full time college student and are under 24, it is possible that your parents can claim your exemption. You will need to do a dependency worksheet (on Pub 501, or Pub 17, or several other places http://www.irs.gov/pub/irs-pdf/p17.pdf Worksheet 3-1 p33 on this link) to calculate if you supported yourself more than 50%. If you made more than $20K, and you took out loans in your name for college, it is likely that you can, but do the worksheet to be sure.

With the child, you may be eligible for the earned income tax credit and/or the child tax credit and/or the additional child tax credit and/or child and dependent care credit. Four more things to look up.

Forget the car.

Tax Tip: choose the simplest tax form for your situation

To file your 2010 individual tax return, you’ll have to decide which form to use… unless you e-file.

Question: Finding out my irs collections district?

How do I find this out based on my past 3 years tax returns? I need this for an application.

Thanks!
What 800 number? I need it for an application, not for my return. Anyone actually know how to get it rather than just talking for the sake of talking haha?
Exactly what I stated. It’s a federal government application so it’s obviously does exist.

Answer: There is no such entity as an IRS Collections District. Even if there was, it would be a pointless piece of information for an application for anything. What does the question really state?

All Dates for this Event:

DEFENSIVE DRIVING COURSE: Preregistration is being taken now for a Defensive Driving Course Feb. 8 from 6 to 10 p.m. in the Minot Adult Learning Center, 1609-4th Ave. NW. The course is offered by the North Dakota Safety Council, Bismarck. The cost is $45 per person.

IRS SSA Stimulus Fraud in Philadelphia Judge Matthews Caplan Possenti DHS Ambrose Child Abuse

Undisclosed Offshore Accounts are being hunted down with FBAR (Foreign Bank Account Reporting) information requests of U.S. Taxpayers suspected of hiding assets in the wake of the UBS AG fallout and IRS Offshore Settlement Initiative.

What is in store for undisclosed account holders?

In 2009, the IRS and U.S. Department of Justice commenced a highly publicized investigation into Swiss bank UBS AG and U.S. account holders who essentially hid their assets from the U.S. Government. However, the investigation did not conclude with UBS. To entice taxpayers to come clean and disclose their foreign assets in exchange for lesser penalties, the IRS instituted the Offshore Settlement Initiative Voluntary Disclosure Program (the Initiative). Although the deadline to participate in the Offshore Settlement Initiative is long gone, it is clear that offshore tax evasion will continue to be a top IRS enforcement priority. Now, what can U.S. taxpayers with undisclosed offshore accounts who did not make the October 15, 2009 Offshore Settlement Initiative deadline expect coming up?

The IRS will be ramping up their Information Document Requests or IDRs targeting offshore bank accounts.Taxpayers may receive a Form 6564, Information Document Request, to obtain necessary books, papers, and other information relevant to the IRS examiner inquiry into the truthfulness of a tax return. The Information Document Request is a proper and structured process for the IRS to request and get information from taxpayers, including information regarding offshore bank accounts. Although not as formal as a subpoena, an IDR carries with it consequences for failure to comply and can lead to further inquiry and possible sanction.

The IRS will focus Information Document Requests on U.S. taxpayers with offshore assets and accounts that failed 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, Foreign Bank Account Reporting 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 taxpayers foreign assets. Additionally, taxpayers could be subject to criminal prosecution and jail time for tax evasion.

The issues surrounding these IDRs are extremely delicate and should be approached with considerable caution. Taxpayers who have been sent an Information Document Request by the IRS are best served by getting in touch with a tax attorney who is experienced at resolving disputes with the IRS quickly. An attorney can direct the taxpayer how best to answer an Information Document Request and will be able to talk with his attorney the most appropriate course of action. Otherwise the Internal Revenue Service can seek formidable fines and possible criminal prosecution against those U.S. Taxpayers believed to be hiding assets in undisclosed offshore accounts.

Board holds true to levy, looks ahead to 2010-2011

Monday night’s regular school board meeting capped off with their annual Truth in Taxation meeting. The meeting discussed only the school district’s effect on property taxes.

Surviving an IRS Tax Audit : Causes of IRS Audit