The IRS Audit Blog

Posts Tagged ‘IRS Audit’

Question: What to wear to an IRS audit????

A man who was called to testify at the IRS, asked his accountant for advice on what to wear. “Wear your shabbiest clothing. Let him think you are a pauper,” the accountant replied.

Then he asked his lawyer the same question, but got the opposite advice. “Do not let them intimidate you. Wear your most elegant suit and tie.”

Confused, the man went to his Rabbi, told him of the conflicting advice, and requested some resolution of the dilemma.

“Let me tell you a story,” replied the Rabbi. “A woman, about to be married, asked her mother what to wear on her wedding night. ‘Wear a heavy, long, flannel nightgown that goes right up to your neck.’ But when she asked her best friend, she got conflicting advice. “Wear your most sexy negligee.”

The man protested: “What does all this have to do with my problem with the IRS?”

The Rabbi replied, “No matter what you wear, the results are ineveitable…….”

Answer: that sounds like the witty hampsters rednek joke. im blond and computer inept..but I’ll try to find it and copy it 4u..hope you like it…..

Relative of Michael Jackson? (joke)?

A long-haired youth was hitchhiking through the deep South.
He got a ride from a mean-looking redneck trucker.
After riding about 30 miles in silence, the youth finally said, “Well, aren’t you going to ask me?”
“Ask you what?” replied the trucker.
“If I’m a boy or a girl,” answered the youth.
“Don’t matter,” replied the trucker. “Gonna f*ck ya anyway.”

well?????
he’s pretty good eh?

Capacity Building: ICE/HSI Form I-9 Audit Fusion Center—Open for Business

The IG report states that “DHS has made progress in its efforts to improve information sharing with fusion centers . Fusion center personnel indicated that information sharing had improved over time and the information received from the Department met their needs primarily due to the deployment of DHS intelligence officers to the centers.

IRS Tax Audit – IRS Tax Audit Help CPA

Question: How many years back can the Irs audit a taxpayer?

Answer: 7 years

Selling mutual funds

Q: I just sold a large chunk of my mutual funds to help my son buy a house. I bought the funds many years ago and reinvested all my dividends. How do I calculate my tax basis and capital gain? A: Mutual funds have become one of the more popular vehicles for stock market investments.

Question: How long can the IRS audit a closed business for back sales tax that may be owed in Florida?

for back sales tax that may be owed in Florida.

Answer: oh, man, the IRS can do anything in this country….and they will take there sweet old time!! and don’t get them mad!!

IRS looking to tax San Bruno victims’ money from PG&E

The IRS is planning to tax the money San Bruno fire victims received from PG&E.

IRS Audit of Tax Returns

Question: An opposing lawyer is proposing to use Black-Scholes valuation on 4,565 of stock options?

The stock is COP Connocophillips stock that has increased from $42 per share in 12/2004 to $67 per share today. He states that the fair market value of the stock options will equal the option spread (the difference betweeen the fair market value of the stock option at exercise less the exercise price) E.G. (Transfers of compensatory stock options to related persons audit technique guide) (IRS 02-2003)

These shares will be sold in next two years.

Opinion??

Fred

Answer: This is definitely the minimum theoretical value. The Black-Scholes equation will give you a value that is probably at least equal to this value. In fact if these options can be exercised at any time they will have a value which could be higher (but may not be) than the stock price minus the strike price. This will come from the COx-Ross-Rubenstein binomial model. But this is a detail that may not be totally relevant.

I guess as he is the opposing lawyer, you probably want to find a way he could be wrong. Maybe you are a guy who is going thru a divorce and the assets are being split up?

Well, if you have to hold the options until the expiration date, it may be hard to find an argument. But if you are strapped for cash and are able to exercise the options early, you might argue that you could be forced to exercise the options “irrationally”. This notion of “rational exercise” along with the notion of “risk neutral valuation” are assumptions that are made if the Black-Scholes model is to be assumed to be correct. Risk neutral valuation is OK for a bank but doesn;t realy apply to an individual. Tell your lawyer to pick up a book by John Hull called “Options, Futures and Other Derivatives (6th Edition)” – in there will be stated the exact assumptions for the Black Scholes equation to be applicable. Right or wrong, he can probably find some argument to say that one of the assumptions is not applicable in your case. Good luck!

Nine Ways Independent Filmmakers Can Fight the IRS

Are you an independent filmmaker? Wondering if the IRS will eviscerate your already precarious financial status? (For more on that, click here.) Wonder no more: Not only can you take the nine-factor test right now in the privacy of your home, we’ve also provided a study guide to help you pass with flying colors. (Note: Of course, this is only relevant if you intend to file for deductions related …

Appeals – IRS Audits, from the Taxpayer Advocate Service

Question: Is anyone in need of legal representation and cannot afford a lawyer?

When you need an attorney who will you call?
Have you.. thought about writing your will?
been audited by the IRS?
purchased a home?
recieved a moving traffic violation you thought was unjustified?
had any type of legal question?
signed a contract of any kind?

Answer: I got a public defender. It cost me a total of $25.00 and the sentence was reduced by over half.

Tax Strategies for Charitable Giving

Five tax-friendly ways to give to your favorite causes

IRS Problems Houston: IRS Harassing You? Get FAST Relief