The IRS Audit Blog

Posts Tagged ‘nonprofit’

Reducing the Cost of IP Law

How should the IP system be reformed? For those with a principled, libertarian view of property rights, it is obvious that patent and copyright laws are unjust and should be completely abolished.

Local Origination Movie1 Chapter35 Gross Negelgence $5.4 Million, Want Pay Back

Question: Do I have to do anything special to report tips to the IRS?

I work for Domino’s and was wondering if when tax season comes I have to fill out anything special in regards to tips. Domino’s reports all of my tips to the IRS and takes taxes directly out of my paycheck for tips. Will I have to pay additional taxes on my tipped earnings or has Domino’s taken care of everything for me? Obviously I have kept all of my driver’s slips for each delivery which include the amount of the delivery, tip received, and whether it was a credit card transaction in case I get audited, but is this all I have to do? Thanks.

Answer: If you reported all your tips to your employer, you don’t have to do anything. The tips will be included on your W-2.

Forensic Audit Report Released

Your taxes could have been affected due to poor record keeping in the Elmira city school district.

How to Avoid an IRS Tax Audit : How to Report Business Losses on Schedule C Tax Form

Question: Tax-exempty status – Examples of Package 1023?

I am in the process of forming a non profit in NC. Since I was able to view completed Articles of Inc. on the NC Secretary of State site I was wondering if there is a website where I could view the paperwork (1023, 990, etc) involved in the 501(c)3 process.

I am interested in viewing completed applications. Assuming that a tax-exempt organization is open to scrutiny, because of its status, I would think that one would be able to view these forms in their entirety, as opposed to instructions and blank forms provided by irs.gov.

Past incorrect answers have been:

Form 990
www.irs.gov/pub/irs-pdf/f990.pdf
instructions
www.irs.gov/pub/irs-pdf/i990-ez.pdf

See Application for Exemption
www.irs.gov/pub/irs-pdf/f1023.pdf

explanation of requirements:

IRS Publication 557 “”Tax Exempt Status for Your Organization”
www.irs.gov/pub/irs-pdf/p557.pdf

These are blank not completed forms.

Answer: Public disclosure FAQ from the IRS: http://www.irs.gov/charities/article/0,,id=96430,00.html

Ordering copies on CD/DVD from the IRS: http://www.irs.gov/charities/article/0,,id=150268,00.html Note that the (significant) costs here are waived for requests from the media as well as from other governmental agencies.

You can also subscribe to GuideStar.org though their website: http://www.guidestar.org/services/ds.jsp?gclid=CISf2aXDr40CFQIpFQodyR280A It’s not free, but it’s cheaper than buying the DVDs from the IRS.

Turner, Jones top SMU salary lists

June Jones, left, and R. Gerald Turner, right, are the highest paid employees at SMU with total compensations more than $1 million.

Internal Revenue Service (IRS) Form 990 – Are You Ready?

Question: Can you help me report tax fraud of an unethical business?

If anyone needs the general information for reporting fraud here is the link: http://www.irs.gov/individuals/article/0,,id=106778,00.html. My question is the form asks for the business taxpayer identification number which I have no idea how to find. Any clues?
The business is an housing complex and therefore a corporation. Many people in my building have been told their payment was lost or misplaced because reciepts are not given and monies such as money orders are easy to lose proof of.

Answer: I am a Former IRS Attorney that assists individuals obtain rewards from the IRS for reporting tax fraud or any under payment of tax by a taxpayer. A new law went into effect two years ago requiring the IRS to pay between 15% and 30% of the amount of tax determined and/or collected based upon the information provided. There are a number of good web sites to find out more this program. Ours is located at www.rewardtax.com . (Note, the tax, penalty and interest must exceed $2,000,000 to qualify for the reward)

However, if you just want to report tax fraud you can simply complete IRS form 3949A. Here is a link to the form http://www.irs.gov/pub/irs-pdf/f3949a.pdf . If you are concerned about your identity, see instructions on page 2 for line 6. The IRS says that you do not need to identify yourself if it is a concern of yours.

As to the identification number, if it is a public corporation you will find it on the SEC website in the Form 10K. Otherwise it will be on a Form 1099 or Form W-2 that will be issued to you…hopefully.

Judge gives UBS client probation for tax evasion

By Jonathan Stempel

US CPS Victims Use Free Form Submit Child Slaughter State of Emergency Evidence Obama USDOJ MLK Bday

Question: In California what would it cost to prepare an ’08 Form 990-EZ?

Just taking the numbers off the trial balance and putting them onto the right lines and making everything balance? This is for fiscal 08/09 so the deadline is 11/15/09. We are looking for an EA or CPA. Probably should mention the cost for the state return too.
Could someone give me a guesstimate please? Ballpark is fine.
Is the IRS estimate of 15 hours to prepare and assemble a reasonable time frame? (Seems pretty long to me.)
Thanks Judy, but I was looking for a hard number or at least a range that it might cost. Does anyone do and charge for preparation of the 990-EZ Not for Profit Corporation return?

Answer: I think the other responder who says 20 minutes is thinking of a 1040-EZ and has probably never been involved with a 990, EZ or otherwise.

I’ve done all versions of 1040, 990, and 990-EZ this year since who can file one rather than the full 990 has changed for a couple years. A fairly straightforward 990-EZ, when I’d done the 990′s for that organization for several years, probably took somewhere in that 15 hour vicinity, maybe a little less.

So getting it done won’t be cheap, unless you can find an EA or CPA who is interested in your non-profit and cuts you a break on cost.

Is the Internet full? AT&T’s dire warnings sound a too-familiar theme

In public policy, there’s a concept known as the “Statue of Liberty ploy” (not to be confused with the Statue of Liberty play ): Faced with any sort of budget cuts in a given area, officials say sorrowfully that they will be forced to shut down the Statue of Liberty, counting on the huge public outcry that ensues to restore funding.

501(c)(3) Compliance & Form 990 Preparation