The IRS Audit Blog

Posts Tagged ‘nonprofit’

Question: Employer showed additional $40,000 in income, which i did not earn.?

I worked for the employer and initially earned $13,000 and i received the W-2 form for the income and i filed the taxes for $13,000. Received letter from the IRS that the employer showed addition income for fishing income $12,790, another income $12,790, rental loyalty $13,990.
I don’t understand the additional income showed by the employer and how can is dispute. ( The employer never gave me any document regrading the addition income shown on the IRS). I NEVER RECEIVED THE ADDITIONAL INCOME SHOWN IN THE IRS DOCUMENTS BY THE EMPLOYER

Answer: Go to the Human Resources Department of the company where you work. They can help explain what is going on. Also, call the person who does your taxes. You don’t by chance work on a boat? Are you sure somebody else isn’t using your Social Security Number? Identity theft can cause strange things to happen with your taxes. Call the IRS to see if anybody worked for a different company using your SSN.

Yakshna Solutions, Inc. Adds More IRS Forms to its Tax Product Series to Help Tax Payers to E-file their Returns and …

Tax2efile is an exclusive tax e-file service from Yakshna Solutions, Inc. Tax2efile provides e-file service to individuals, business and non-profit organizations to complete the actual tax returns and extensions timely, accurately to avoid interest and penalties. Tax2efile helps to file IRS extension forms 4868, 8868,7004 to defer the actual returns, in some cases to defer the payments for 6 …

Association Form 990 Database Demo

Question: Workers Comp and Taxes -Never paid question?

In 2005 i was in an accident at work. i was on workers comp throughout 2005. Filed my taxes for 2005 but i didn’t file my workers comp wages. In 2006 I was on workers comp. Got a small settlement 6250 after lawyer fees. Then was on unemployment for 1 month while i searched for a job. I never received any sort of tax information from either workers comp and unemployment so i never filed. I didn’t know better at that point.

My question is What should i do to cover my butt with the IRS?
Please ask for any additional information i will provide it.

Answer: If you had no other income in 2005 or 2006, it appears you are not required to file a federal tax return. If taxes were withheld from your payments, you may want to file to get a refund. You can still do that for 2005 or 2006.

Your state may require a tax return, you have to check that out with your state. Some states have filing requirements lower than the federal filing requirements, and some states tax unemployment.

If you have other income for either of these years, take everything to a tax preparer for review.

It’s never too late to overcome debt

Q. I turn 60 this year and I’m single. I owe the IRS $75,000 and the state $8,000 in state. I also have a student loan of $40,000. I have a degree in business management. I make about $30,000 annually, but have no savings and no retirement. I liquidated my 401(k) when I was unemployed — a big mistake. I need advice on how to turn this situation around.

TMP Government Wins Four Telly Awards for IRS Seasonal Spot

Calendar

Submissions for “Community Calendar” are required two weeks preceding the date of publication. Send to: Mary Ann Bottari, Pioneer Press, 3701 W. Lake Ave., Glenview IL 60026; mbottari@pioneerlocal.com. Information may be faxed to (847) 486-7495.

Important Tax Law that must be understood and adhered to.

Question: Change my EIN to a non-profit?

I started a new Non-Profit corporation, but while filling out the IRS online application for an EIN I chose “corporation” instead of “non-profit”. The letter with the EIN states that we have to file form 1120. Do I need to take any steps to change the official status to that of a Non-Profit, which files form 990?

Thanks!

Answer: If you have not received IRS exemption determination, it may be treated by the IRS as a regular for-profit entity, which means that it would need to file annual returns, for example for 1120 for corporations. It may be exempt from filing, though, if it is merely a club. The IRS explains that, when applying for the Employer Identification Number, the club may check the line for “banking purposes only”
Please visit www.irs.gov/instructions/iss4/ch02.html for further clarification.

ECFA Forms Commission in Wake of Prosperity Probe

Since Sen. Charles Grassley concluded his report on six Christian ministries Thursday, ECFA has announced that it will form a committee to address eight key concerns noted in the report.

WageWatch Non-Profit Compensation Survey

10 fees that can wreck your retirement savings

It’s said that what you don’t know can’t hurt you. Not so. What you don’t know can cost you, and sometimes cost dearly. Case in point: Advisers and others said there’s a host of unknown costs and fees lurking inside your 401(k) plans, IRAs and other such retirement accounts.

Henry & Horne, LLP – Not-for-Profit Services