The IRS Audit Blog

Posts Tagged ‘taxes,’

Question: Do i need to reportthe amounts paid to subcontracting conmpanies? If so How?

Registered S-corp (Computer consulting services) in IL state. We get payments from Vendors and pay to the sub contracting companies for the resources they provide apart from our own company employees. So now what kind of tax filings i have to do? How do i report the amount we paid to Subcontracting companies and How do we report to IRS?
What are all IRS Tax Forms i need to file as a corporation taxes? profits/income? Thanks

Answer: Yes, you would want to. If you own a business, and you reported 1099s to your subcontractors, you would want to include these amounts on your Schedule C as outside services, and report these 1099s to the IRS likewise.. this only benefits you with a larger refund.

2011 Payroll Software for QuickBooks Users from Real Business Solutions Updated with 2011 Federal Tax Tables, 2 …

Payroll Mate payroll software releases new payroll withholding calculator with support for the 2011 tax tables, that were developed as a result of the recently passed Tax Relief and Job Creation Act of 2010. Payroll Mate helps payroll departments and small businesses using QuickBooks implement the new changes by the IRS due date of January 31, 2011. [PR.com]

iRS- Manifestazione per denunciare il prezzo delle bombole del gas in Sardegna (servizio di Telegì)

Question: Has anyone recieved their second letter from the irs????

I called the irs hotline for the rebate and it said that they was sending out letters one week in adcance to those who was getting their rebates. It said that it would tell you the amount and when you should get it. Any one get a letter yet???

Answer: I talked to the IRS today and she said that the 2nd letters got mailed out late last week….

Catching up on tax laws

Tax documents should start appearing in your mailbox soon. The income tax filing season has begun — with a few firsts — and representatives of the Internal Revenue Service are encouraging taxpayers to get an early start rather than postponing fili …

Economic Stimulus Package Rebate check from the IRS

Question: If I file a form 4506 with the IRS, will the return I get back have their filing date on it-when they got it?

Answer: Yes if you are requesting a tax return and pay the $57 fee for a copy of a tax return, it will have the IRS received date stamp on the return. If you request the transcript for any year it will also show the date IRS received the tax return.

Fannie And Freddie’s Managers Bought Nonprime Paper For The Same Reason Merrill Did

The Republican members of the Financial Crisis Inquiry Commission have conducted a preemptive strike.

Question: Contructive Sale Tax Rule? If I open a long and short position at the same price, what are the conseqences???

I’m new to investing and opened up a long position and a short position at the same price of 54 per share. 300 shares both ways. Knowing that most likely the stock was going to drop I would eventually get it at a lower price if this happens because every dollar loss in the long position is a gain in the short position making it even out. It has gotten down to 45 and I want to buy to cover and close out the short position, since I think this is a bottom. My hope was to gain when the stock goes back up, but I was unaware of this contructive tax rule I have been reading up on the IRS website http://www.irs.gov/publications/p550/ch04.html#d0e8897 it is very confusing and if someone can help clarify my position or give advice on what to do it would be greatly appreciated. Because it seems like if I do the wrong thing the tax consequences could be killer. Thanks!

Answer: My understanding is:

(1) You do not have a constructive sale because one position had not appreciated before you opened the other.

(2) Assuming you opened the positions after October 22, 2004, you do have a “straddle” and the “straddle rules” apply. (See page 57 of

http://www.irs.gov/pub/irs-pdf/p550.pdf )

(3) If you close the short position you will realize a profit. That profit will be a taxable capital gain.

(4) If you close the long position you will realize a loss, but that loss cannot be claimed on your taxes as long as it is offset by an unrealized gain in the short position.

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Warning! I am not a tax professional. I did spend a long time learning about taxes and straddles some years ago, but the rules have changes since then.

I suggest you repeat your question on the message board at

http://www.fairmark.com/

which has some tax professionals posting.

What stocks should I sell when I rebalance my portfolio?

I’ve read a lot about the benefits of rebalancing your portfolio annually, but I’ve never seen the answer to these questions: How do I decide which stocks to sell? And when should I “wait it out,” assuming that a good stock will rise back to its pre-crash price, as opposed to pulling the trigger and accept a loss? — Chris, Long Beach, Calif.

QQQQ Trading

Question: Tax Attorney in Florida Reccomendations needed!?

Dear Friends,

I plan to hire a Tax Attorney or Criminal Defense Attorney with expertise in Tax Law in order to meet with an IRS Criminal Investigation Officer, since my friend was requested by this officer to meet him in his office.

Any recommendation of experienced attorney in Florida, preferably in Miami area, will be greatly appreciated.

Kevin

Answer: I don’t have a true reference, but I just went and searched on “tax attroney miami florida” and here are the results.

http://www.google.com/search?sourceid=navclient&ie=UTF-8&rls=DAUS,DAUS:2006-11,DAUS:en&q=tax+attorney+miami+florida

Will corruption grand jury bring charges, change or just hot air?

Interim report reads as a plaintive cry of frustration When a grand jury issues a report instead of indictments, it can be seen as running a white towel up the flagpole.

Miami Criminal Tax Attorneys White Collar Crime FL