The IRS Audit Blog

Posts Tagged ‘reference’

Question: REVISED: Mom passed away leaving my daughter as beneficiary on an Annuity?

Here is more specific information on my previous question: My daughter could not have the money until she turned 18. When she turned 18 she cashed out the annuity being a death benefit inheritence and took the money and put it away in a savings account for college. At the end of the 2009 year she was sent a 1099-INT form with gross disb. being $50, 219.00 (box 1) and taxable amount being $27,525.00 (2a). This was the only income she had and we paid over $5,000.00 in IRS taxes. Now after talking with others (not accountants) I’m being told that since this was an inheritance it was supposed to be tax free up to $100,000.00. We all are in Calif.

Answer: Only the portion that already existed when the death occurred is an inheritance. That is the only part that is tax-free. The taxable amount is the portion that was added during the years between the death and now, which is not an inheritance and is not tax-free.

Early income-tax filing not the best deal

The early bird doesn’t always get the worm. Moreover, said a consumer-finance expert in Penn State’s College of Agricultural Sciences, being in a hurry to file your federal income tax forms in pursuit of a quick refund isn’t always the best idea.

Free Minds TV July 23, 2010 (EP 166)

Question: how much do minors have to earn in a year to get tax returns?

she’s 16 and earns 13/hr at her job. she’s been there four months. anyone a tax attorney out there?

Answer: The threshold for 2005 is $5,000 of earned income for a minor. Anything below that and she is not required to file, assuming she is being paid as an employee (receiving W-2). The threshold is much less if she is receiving a 1099.

As orf1943 pointed out, if she is having taxes withheld from her paycheck, she will want to file anyway in order to get those back as a refund.

Marysville contractor gets over 6 years, ordered to pay $2.5 million for sales tax theft, workers comp fraud

A 54-year-old Marysville drywall contractor who admitted reporting less than one-half of one percent of the sales tax he collected on jobs has been sentenced to 75 months in prison Friday after repaying only $500 in restitution, according to a release from the state Department of Revenue.

IRS Tax Help Attorney Lucy Ludwig

Question: I need my w2′s & 1040EZ forms for the past 3 years but I can’t find them?

I was wondering how fast could I get them if I go to an IRS office to request them and how much does it cost?

Answer: Going to your local IRS office is a smart thing, but the wait maybe long, the IRS employee will print out the w2 wage information transcript and a return transcript, for FREE, if you need the actual F1040EZ and the w2 then you need to download form 4506 and pay $52.00 or $57.00 for each year you need. If you need these copies for bank, school etc the transcript are accept for proof of income and proof of filing. But if you have not filed your tax return and are needing the Form 1040 EZ to file then visit irs website www.irs.gov and keyword forms and then go to more forms and publications then previous years.

Good luck.

Tax Increases Expected in Aurora

Aurora taxpayers with property outside the Village of East Aurora were warned to expect a 33 percent tax rate increase in their “town outside the village” tax bill in 2011, primarily reflecting the cost of police service. Aurora Supervisor Jolene Jeffe previewed a tough budget year at Monday’s regular board meeting.

Progressive Reaction to Joe Stack IRS Suicide Plane Attack – Take Back Talking Points ep 11 part 7

Question: Upon the advice of my tax attorney, was told to open a new checking acc’t, (IRS) problem: I owe other banks!

Had my own business, fell through, lost everything. IRS states I owe 6 figures, my lawyer said I should get a new bank acc’t as it would take 8-10 months for them to get to the new account information. I’m on the “checksystems” and don’t think I can open a new checking account with another bank. Can I have a family member open one under their name and be listed as well? I’m worried the IRS will empty out my bank account! Please help with valid ideas? Thank you kindly!
****The intent to wait 8-10 months is to have time to work out details regarding the moneies owed to the IRS.

Answer: Hmmmmmmm, Im not so sure if I would listen to that attorney!!! If you owe other banks, it is on your credit bureau. Just because you change banks does NOT mean your cash is safe. Your social security number immediately alerts the IRS of where you are banking and they will seize that money immediatley……
Think this one thru…..your attorney is WRONG!

Take Care,
Darlene M

Lovell Joins nexAir as CFO, General Counsel

Having entered the legal profession as a means to develop a long-term business career, Milton Lovell realized his goal recently when he was named the …

New York Tax Attorney – Sean Chi offers advice on Reducing Your Tax Debt

Question: if one is being audited by the state, does the state also notify the irs?

the lady who does my parents’ taxes is being criminally investigated for fraud. because of this, the state is auditing their taxes, along with all her other clients. because of the nature of this investigation, will the state eventually notify the irs, leaving them (my parents and her other clients) open to be audited federally?

Answer: State and Federal authorities frequently exchange notes so they should plan on it. Most states base the state tax liability on the Federal return as a starting point so any changes will have to be reported to the IRS as well.

Karzai’s brother says he will amend US tax returns

The eldest brother of Afghan President Hamid Karzai said he is not aware of a criminal investigation into his activities, an inquiry he claims is more about political differences with the U.S. than wrongdoing on his part.

MSNBC Investigation – Rachel Maddow Tax Shelter Crackdown