The IRS Audit Blog

Posts Tagged ‘reference’

Question: Widow of IRS employee killed by Joseph Stack’s plane is suing pilot’s widow?

AUSTIN, Tex. – The widow of the Internal Revenue Service employee killed when a Texas man crashed his plane into the agency’s office is suing the pilot’s widow.

The lawsuit against Sheryl Stack seeks to determine if her husband, Joseph Stack, left behind insurance policies or other assets, attorney Daniel Ross says.

Ross represents Valerie Hunter, whose husband, Vernon Hunter, 68, was killed last week when, authorities say, Joseph Stack deliberately crashed his single-engine plane into the IRS office.

The pilot left behind a lengthy anti-government Internet posting blaming the IRS for his problems.

The lawsuit, filed Monday, says Sheryl Stack should have warned others about her husband.

http://www.nydailynews.com/news/national/2010/02/24/2010-02-24_widow_of_texas_irs_attacker_sued.html

What do you think of this ???

Answer: It seems like a greedy woman and an ambulance-chasing lawyer got together to try to sue for more than the deceased would have made in 10 lifetimes. This is a perfect example of the need for “loser pays” tort reform. A counter-suit would be in order against both the plaintiff and her attorney. If I were on the jury, the case would be dismissed out of hand. If anything, a monetary award would be made to the defendant in compensation for grief and suffering caused by the plaintiff and her attorney.

America 2.0: How to create a true ‘new deal’

My recent column suggesting Congress should make a down payment on restoring our trust by returning the excess employment taxes workers have paid since 1984 hit a nerve. Reader mail carried messages of frustration and anger — a sense of futility a …

The Disaster At The General Accountability Office

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

Question: When you apply for a job with the IRS as a field agent or special agent…..?

they do a tax audit that you agree to be performed for employment. How far back do they go, and should unreported ebay income from a few years ago be a worry in this process?

Answer: Anyone applying for Employment with the IRS has their Tax filing history reviewed. They look that all returns for up to 10 years are filed, whether you left income off of a return, Basically were you compliant in filing your returns. They also do a detailed background check and you are required to be fingerprinted.

Demand for financial services pros expected to grow

Reforms in industry, expansion of banks’ products and services to spur hiring, experts say.

IRS will expand by 16000 jobs and $10 Billion Due to ObamaCare

Question: I refiled my taxes with the assistance of an attorney. I only $448. But they still say I owe 38Gs on 70Gs.?

I have sent this paperwork to the IRS. They have taken my returns consistently since the audit in 2005 and again this year. Can I get my money back?
Rephrase: In 1999, I file my own taxes on a 1040ez form. I wasn’t familiar with how to report my stock option earnings at the time. In addition, the company I worked for lumped all earnings into one W2 – the total earnings for that year was 70,000. Base wage + Stock Options. Taxes were automatically taken out when I cashed in the options. However, my filing gave the IRS the impression that I had additional earnings. In 2005 I was audited due to a mistake on my return. The result was – I owed 42, 000 in taxes in 1999. I refiled with the assistance of a CPA / Tax Attorney.
The result was that I only owed 440.00 in taxes for 1999. My attorney submitted the appropriate tax forms in 2006. This year I received a letter that my stimulus and tax return was taken again for 1999. Which now states I only owe $38,000

Answer: Okay, new sequence.

You exercised (and sold?) stock options in 1999. These were NSOs where the spread is included in the W-2 in box 1, after which, your basis in the stock was the FMV on the day you got the stock. If you resold the stock the same day, your capital gain would have been ZERO.

Unfortunately, you didn’t file a schedule D showing the sale of the stock until recently. Without knowing your basis, the IRS used $0 and taxed you not only on the spread, but the ENTIRE FMV of the stock.

This caused you to appear to have considerably more income. With the under-reporting statute being 6 years, you could get hit with tax (say 35%), an accuracy penalty (20%-25%) and interest. This could easily cause you to owe $38K if the FMV had been, say $60K.

When you refiled, the tax return had to be sent to the statute group. They had to verify that your return was still within statute and how much of the additional tax had been incurred/paid in the previous 24 months. This adds weeks to the 1040X process, which was already 8-12 weeks to begin with. If you did this recently, there hasn’t been time to process it.

So…in the meantime, the IRS thinks you still owe and it’s still grabbing refunds. When the dust settles, if you were able to show enough paperwork to show it was in fact a same day sale of an NSO, you’ll be okay and the excess refunds will be returned to you.

Intuit TurboTax Home & Business: Comprehensive Help for Sole-Proprietor Taxes

TurboTax Home & Business’s attention to detail and excellent data-import features make it the package of choice for sole proprietors with complex tax situations, but it’s expensive and it might be overkill for some sole Schedule C filers.

Prepaid Legal Services

Question: Can you request W-2 forms from employers on the IRS website?

We live in Alaska, my guy works for Wal-Mart and in the middle of our move has lost his W-2 form. Is there a place on the web that you can download W-2 forms instead of going to the IRS office? I appreicate the help!

Answer: No.

For this year, you will first have to deal with Wal-Mart to try to get a copy of your W-2 form. Ask them to send a duplicate. I don’t know if Wal-Mark also posts W-2s on a website for employees or not, but if they do, that is a possibility.

The IRS will not have a copy of your W-2 until about May or June (they get them from the social security office).

Watchdog group criticizes U.S. Rep. Tim Walberg, other members who sleep in their D.C. offices

The Citizens for Responsibility and Ethics in Washington has asked the Office of Congressional Ethics to look into whether members of Congress who sleep in their offices are violating House rules.U.S. Rep. Tim Walberg, R-Tipton sleeps in his office and…

★★★★★ Plane Crash In Austin Texas – Suicide Attack On IRS Offices – VLOG