The IRS Audit Blog

Posts Tagged ‘irs form’

Question: How to file Tax Extension Form 7004 Part 3?

Please help i have 5 days to send this form to IRS.
Part 3
Please explain line 6-8 and what document to use to file those
Thanks

Answer: Just go to FileLater.com (http://filelater.com) and file it electronically. You’ll get an email confirmation that it’s approved by the IRS (and if you get rejected, FileLater will tell you why and let you resubmit for free).

You won’t have to worry about different fields on the form… and they’ll give you instructions specific for your state extension if applicable.

It’s way easier than trying to print & mail, and you get peace of mind that it was received and approved by the IRS.

How to get an extension on your taxes

Need more time? You can try for a “no-questions-asked” 4-month extension. (©iStockphoto.com/Amanda Rhode)

Question: what do i do now? taxes?

I already filed my taxes on-line and today i got this paper in the mail it was a cancellation of debt form 1099-C, what do i do with it and how is it going to affect my taxes ? is the IRS going to come after me if i don’t amend my taxes? it is for a car loan about 3500.00 i read the form and am unclear as to what it means it says something about reporting this as income? i don’t get it, i wasn’t paying on it so i don’t know?????
should i amend now or wait? we need the money to catch up bills! will this delay our return? could i possibly file the amendment next year?

Answer: You have to amend. You don’t want the IRS coming after you because you didn’t include the 1099-C. That is far more of a hassle than amending your return.

Yes, the 1099-C amount is considered income for tax purposes. Think about it this way, imagine you paid that 3,500 that you owed, and then they gave it back to you- that’s income. You were responsible for paying the full amount, so by not having to now, it’s like money in your pocket.

So, when you amend the return, you’ll have to add the 1099-C as other income, which will likely increase your tax liability. If you received a refund, you may have to pay some of it back. If you owed, you’ll likely owe more.

Sorry. :0(

Equifax Reports Fourth Quarter and Full Year 2009 Results

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Taxes on Short Sale, Loan Modification & Mortgage Foreclosure 3 Nov08 Cancellation of Debt Income

Question: When using IRS Form 8880 can a deduction be taken if a spouse recieves distributions from his IRA?

Answer: If you are filing separately, each will file a separate 8880. If filing jointly, then it is combined on the same form, but each is listed in separate columns. You can receive distributions from an IRA and still be able to claim the credit, but you reduce the contributions by the amount of the distributions received, so if the distributions exceeds the amount of the contributions made, you will have nothing to calculate the credit with. Note however, that the taxpayer and spouse is calculated separately, so if the spouse receives distributions from his IRA, while his wife doesn’t, his distributions doesn’t get deducted from HER contributions for purposes of the credit.

Tax tips for 2009 from Missouri CPAs

The Missouri Society of CPAs (www.mocpa.org) is the largest professional group dedicated to advancing certified public accountants in Missouri.

Stay Rich Forever & Ever with Ed Slott on WMFE-TV!

Question: IRS Form TDF 90-22.1 – Reporting Foreign Bank Acct.?

If you have a Goldmoney.com account, is that considered a Foreign Bank Account requiring completion of the TDF 90-22.1 form?

Answer: Yes, since they are incorporated in Jersey in the Channel Islands. If the aggregate value of your foreign holdings is $10k or more at any time during the tax year you must file the TD F 90-22.1 report by June 30th of the following hear.

Finance and Banking

This updates our March 17, 2010, In Brief Tax client alert discussing new proposed regulations governing the reporting of foreign bank, brokerage and other foreign financial accounts (“FBAR”) on Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts).

Question: What tax form do I need to file to dispute a claim that I was a subcontractor?

A company that my boyfriend worked for a while ago listed him as a subcontractor when they filed their taxes, causing him to owe money to the IRS (since he filed as an employee and did not have any “write offs”). The thing is, he showed up at the company, used their uniforms, equipment, etc…clearly falling short of what a subcontractor is defined as…
I guess there is a form he needs to file to dispute the company’s claim that he worked as a sub, but I’m not sure what it is called, and can’t find anything on google.

Any help appreciated; sources a plus!

Answer: Get IRS pub 1779 and read it carefully.

Then have your boyfriend submit an SS-8. The IRS will review his side of the story and the payer’s side of the story. If the IRS agrees with your boyfriend, he can amend his return to move the money to the wage category and get back the 7.65% that was the employer’s share of fica/mc. This could reduce the amount he owes.

Letters to the Editor

Reban Tranter, a former director of ABAG (Association of Bay Area Governments) accuses Steve Martinot of demonizing ABAG “in the fashion of the Tea Party brigades” and Sarah Palin, thus name-calling in exactly the fashion he deplores.

Commerce Secretary Locke