The IRS Audit Blog

Posts Tagged ‘income’

Question: how can i claim the Earned Income Tax Credit using the online irs e-file?

e-file the irs notice 9 or form w-5 to caim EITC

Answer: Depends on what software and what company you are using, but all should give you some way to file for EITC.

Newly revised tax guide features recovery tax breaks

Publication 17, “Your Federal Income Tax,” features details on taking advantage of new tax-saving opportunities, such as the making work pay credit for most workers, American opportunity credit for parents and college students, energy credits for homeowners going green, first-time homebuyer credit, sales or excise tax deduction for new car buyers, and the expanded child tax credit and earned …

Take It or Leave It Interactive Video

Tax season: What’s new for 2010

New ways to cut your tax bill Last year, 1.1 million Floridians received unemployment checks. Which makes for more than a million people with some tax-free income. Congress made the first $2,400 of unemployment benefits exempt from federal income tax for last year.

Former IRS Agent and Ron Paul say Federal Income tax is illegal

Question: If you get a tax form for mortgage interest paid on a loan and then claim it, but find out later…..?

The past couple of years we believed a Line Of Credit to be a Home Equity LOC (which the issuing company believes it to be also) and claimed it on taxes.
We are looking to sell the house and found out the company never recorded it with the Registerer of Deeds so as far as the county believes there is only one mortgage.
Will the IRS come back at us in the future even though we have the proper tax form for the interest?

Answer: You’re fine. The IRS looks at the tax forms that are issued by your mortgage company. The IRS does not check with all 3,077 counties in the United States to make sure that each loan and HELOC are recorded properly. As long as you and your mortgage company are in synch, that’s all that matters.

Even if IRS does find out, it wasn’t your responsibility to ensure that the loan is recorded properly with the county. You filed your taxes based on the information provided to you by the mortgage company.

Good luck!

IRS wants paper for tax credit

With the electronic tax filing season under way, the Internal Revenue Service is touting faster service at a lower cost if taxpayers take the online route.

How To Find Tax Forms

Question: my tax refund was returned to the irs by the post office.How long will it take to be sent my current address?

Answer: Be sure to send you new add. to the IRS. Nothing like 2 government agencies to screw things up@

Be ready to wait for IRS talk

Got a question for the IRS? Get ready to try — and try again — if you want to talk to someone on the phone. If you’re lucky enough to get through, you’ll likely have to wait more than 10 minutes.

Making WI Business Tax Payments and Printing Returns-My Tax Account

Question: IRS Audit for Amended Return?

I have a small business (restaurant).

My 2005 tax returns were totally off. Gross sales and COGS were off 110% ($50K to110K and 26K to 55K), and lots of deductions were not included. This is a family business and my brother did the returns and totally screwed up. The old 2005 return paid the IRS $350. With the amended returns, I’m going to be paying them $1300. The amended return numbers are pretty similar to my past returns.

I’m really paranoid because I’m afraid this might trigger an audit

Answer: You will be paying them $950 more with the amendment and they may want some interest. That is likely the last you hear about it. If you can support the numbers on the amendment why worry about an audit. In most cases if you are not trying to do something wrong an audit is no big deal other than the time it take to prepare.

Nett: New tax rules now in effect may affect your preparations

There weren’t any big, sweeping changes in the federal tax law for this year, but there were a few tweaks here and there – things to have in mind when you meet with your tax preparer about your 2009 Form 1040, and things to know, or at least think about, as you do business in 2010.