The IRS Audit Blog

Posts Tagged ‘government’

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Question: Should I have included the 1098-T on my 1040X form?

I had read one of the IRS publications that scholarships can be taxable. The general rule was if my scholarship/grant money was greater than tuition+fees, then the difference was taxable. I used the data on my 1098-T (Boxes 2 and 4).

I did that and filed an amended return. $19,000 in aid – $8000 in tuition = $11,000 taxable. I wrote down on the explanation how I calculated it (equation above).

The IRS has this information right? I am not claiming any other expenses, so the 1098-T form has the exact information I wrote down on the form.
tro: that is because they have the 1098-T already correct?

Answer: you don’t send a copy of the 1098 T with any return

When are taxes due on sale of inherited house?

How to handle the sale of a parent’s home is a question many baby boomers face. Here are two different situations answered by Internal Revenue Service specialist Jesse Weller and estate planning attorney Tracy Potts.

Tax Help : IRS 1099 Forms Instructions

Question: Should I include my college history on this background check form for this job with the IRS?

I am completing the E-quip form for the background check on my trustworthiness for a federal government job with the IRS and it asks for school history in the past 7 years. Well back in 2003 I went to college but didn’t finish and there were no federal government loans or anything but there is a bill of over $4,000 that I wasn’t able to pay and is still on the school account. This has never come up in an interview before and I never use it on applications because it was so long ago. I’m reallly torn on if I should include this in the E-quip form to avoid the risk of having it hurt me by them finding out down the road and firing me or if I should just not worry about it since it was so long ago? I really want this job and don’t want to do anything to jeopardize my chances with it either way. Somebody please help!

Answer: If you don’t tell them, they will find out anyway. Doesn’t matter how long ago it was, and you STILL owe the money. Trust me, the school has not forgotten. You need to contact the school and make payment arrangements. It will look so much better on you if you are proactive about this.

Many deckhands lack documentation for spill claim

In the fallout from the BP oil disaster, they’re almost invisible: deck hands and other day laborers who get paid in cash, don’t receive W2 forms, may not file tax returns and have little or no way of proving they…

To Hell With The IRS!*

Question: How does one get a printout of what was garnished from past taxes?

My brother just got a notice stating that a city owed bill was being garnished from his taxes however the same bill was garnished from his taxes last year. Is there a way to get a print out of what both federal and state taxes were garnished for in years previous and who the money went to? I tried calling the IRS Local Office but got a recording saying there is no live help available at the office. Thanks

Answer: First he has to know what taxes were offset. For IRS, he can call 800-829-1040 or use form 4506 to request a transcript of his account for the year(s) in question. Your state tax agency should be able to provide a similar document.

Seeing red: Local tanning salon owners feel burned by new tax

he first tax under the health care reform law went into effect July 1, and local tanning salon owners say it will harm their businesses. The “tanning tax” levies a 10 percent tax on tanning bed use and is predicted to raise $2.7 billion nationwide over 10 years.

Community Tax Center 2008

Question: Audited, owe the IRS, now what?

My husband and I underestimated 1099 income on our 07 taxes. SSN’s hit in their system? Point is, we owe. Can I simply file an amendment at the time I go to have our 08′s filed, taking along the paperwork, and have the amount we owe deducted from 08 return? Or do I have to ante up prior to?

Answer: If there was an error on your 2007 return that can be corrected that will reduce the debt then you should amend the 2007 return. If you agree with the assessment, just let the IRS know and they will proceed with the normal collection actions.

You can set up a payment plan if you cannot pay the amount in full. If they have already assessed the tax it will be withheld from any refund due on your 2008 return, however they give you 30 days to respond to the initial letter so it’s very possible that they will not offset your refund this year if your return is processed before the 30 days expires.

Francine McKenna: Will Auditors Ever Answer to Investors for Aiding and Abetting?

Urge your Senators and Congressmen to support a repeal of Stoneridge and a restoration of the private right of action for aiding and abetting of fraud, in particular by third parties such as auditors.

How to Avoid an IRS Tax Audit : How to Avoid IRS Audit Flags

Question: Where can I get the 1040 Extension form?

I can’t download it from www.irs.gov!
I can’t view it from http://www.irs.gov/pub/irs-pdf/f4868.pdf

therefore, I can’t download.

Answer: go to website www.turbotax.com
you can efile an extension for free. just type in Extension @ the search icon.
Good Luck!

Reader Mailbag: Tips on handling a debt snowball

A look at a reader’s debt snowball and how to go about paying it off.

IRS TAX TIPS: All About IRS.gov (ASL, CAPTIONS,& AUDIO)