The IRS Audit Blog

Posts Tagged ‘government’

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

U.S. offers special homeowner benefits to military personnel

Servicemen and women have an extra year to qualify for tax credits for buyers. The government also helps owners who must sell their houses for less than what they owe. The United States tries to take care of its warriors, a tradition that Congress has continued in little-known sections of the latest home buyer tax credit legislation and one of the government’s main programs to help military …

Are You A Human Guinea Pig? (3/3) Population Reduction Agenda

Question: i went to irs.gov and where’s my refund and it says it had been deposited directly to bank account on 3/2 but

its not there and my bank says they have not recieved it?

Answer: If you do not see it first thing Monday, ask the bank why not. There is no excuse for it to be delayed at all and certainly no excuse for it to be delayed beyond tonight’s processing.

This, btw, is a bank issue not an IRS one. The IRS is very good at sending moeny out on time. Some banks seem to think it is their money to be released at their whim.

Ga. refunds from paper tax returns may be delayed

State budget woes mean Georgians who don’t file their tax returns electronically could again face long delays receiving refunds, the state’s revenue commissioner said Tuesday.

IRS TAX TIPS: e-FILE (ASL, CAPTIONS & AUDIO)

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: What should I expect in a Texas Sales Tax Audit?

We are going thru a irs audit. The auditor contacted the state, and now they are auditing us too. I went to the first state audit meeting where I gave them our books. We owe. The person called us twice. I have not heard from him since. I’m afraid to call them to see what the hold up is. Its several months. The irs audit is not over yet. Would the state be waiting for the federal findings or what.

If you work for the State of Texas Comptrollers office, please reply.

Answer: I don’t work for the State of Texas but you should call them if you are worried.

Another approach is to forget it. Sometimes with staff turnover and the various audits going on, you could be forgotten. The statue of limitations may run and they will have to audit you in a latter year.

When you say that you owe, did you get a notice? If so you really need to follow up on it so you can resolve it and stop interest from running.

IRS places tax lien on Doc Anderson

The Internal Revenue Service took action against state Rep. Charles “Doc” Anderson, R-Waco, and his wife for failing to pay federal income taxes for 2003, 2006 and 2007.

Community TAx Center-Shadow Brook VITA