The IRS Audit Blog

Posts Tagged ‘taxes,’

IRS levies fine

The city of Rio Rancho has paid $19,000 to the IRS stemming from a recent audit.

Home Owners…Give yourself a Raise through W-4 adjustments or an $8000 Tax Credit

Question: I need to find the tax forms that the employer sends out for past year taxes catch up . Any answers?

I need to find out what I earned on past jobs to do some past tax filing I know I can get the forms to file from irs.gov but where can I get the other forms that show me what I earned and how much was deducted etc.

Answer: Your FIRST action should be to contact the employers. If that does not work, use IRS form 4506-T to order transcripts of your account.

Tax Tip: April 18 filing deadline approaching; IRS offers tips to taxpayers

The IRS wants to remind taxpayers that they have less than two weeks remaining until the April 18 filing deadline and that they can use IRS Free File to do their taxes or file an extension.

Debt Resolution FAQ13 What are the Tax Implications of DebtPro123

Question: Successful reasons for the IRS to remove penalties and interest for late employer withholding tax filings?

We are a nonprofit organization that often receives our funding several months late from a state contract. Consequently, we do not always have enough money to pay our employees let alone deduct and pay to the IRS taxes due during each quarter until we receive our state funding. Thus, we try to stretch our limited funding. What argument will work with the IRS to have it remove the interest and penalties it charges when the 941 forms are late because of this? We do not want to get into factoring of accounts receivable to solve this problem.

Answer: if you have problems with tax, check out this site

http://tinyurl.com/irs-tax-help

3 Phoenix Restaurant Executives Indicted

PHOENIX – The father and son owners of a regional Mexican restaurant chain, along with the company’s accountant, will be arraigned in federal court in Tucson Thursday on tax and immigration violations contained in a 19-count indictment stemming from a lengthy probe by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Internal Revenue Service (IRS).

Why Outsource HR

Question: Should I hire a tax attorney?

I filed 4 years of back taxes and the IRS accepted my returns. I still owe them about 20K that I am happy to pay in an installment plan.

However they are playing games with me now (e.g. sending me the forms to request an installment plan on the day they are due) I am scared that they will “screw” me by putting a tax lien on my credit record, emptying my bank account etc.

I am not being audited but I am scared to communicate with the IRS directly. Is it worth it for me to hire an attorney to communicate with them on my behalf?

Answer: A CPA would do it cheaper.

And they have already put the lien on your credit record, that is the way they work. And if I were you I would not keep any money in the bank for a while as they screw up and take it from time to time (and you can’t get it back as you owe it to them).

Go and consult with a local CPA, make sure you ask him how many cases like yours he has worked in the past, if none or not many, find someone else to help you.

good luck

Branstad says no to attorney pay plan

Gov. Terry Branstad has shot down a House Republican plan that would have allowed him to transfer millions of dollars from other parts of the budget to pay state bills.

Houston CPA Tax Attorney Gives 5 Tax Preparation Tips

Question: Turbotax says I need to send estimated tax payments (using forms 1040-ES) in 2008. Is this true?

My wife and I did not realize that we should have modified our allowances on our Forms W-4 when we got married. As a result, we had too little withheld from our paychecks in 2007, and had a tax bill of $1,500 (married filing jointly). I filed our return using TurboTax, and it told me we will need to submit estimated tax payments in 2008 (using forms 1040-ES). However, the instructions for 1040-ES state that we may be able to avoid this by updating our forms W-4 (which we have already done). Is this sufficient to avoid sending the estimated tax payments? If so, how do we notify the IRS that we have made these updates to our withholding? We have always received refunds in the past and have never submitted estimated tax payments before.

Answer: It depends upon how much you are making. Firstly, if you and your wife combined are earning a relatively high gross income, the IRS withholding tables will not be accurate. Look at your W-2 ‘s and you and your wife’s withholdings in 2007. Divide the Federal tax withheld by your gross pay. If you and your wife were both single in 2006, 6.5 to 7.5 % may well have been enough. However, your incomes are combined now and you may BOTH need to have 6.5 to 21.3% withheld, depending upon how high your income is and whether you get hit with alternative minimum tax. Check your first paystubs after the new W-4′s you filled out go in to effect. You may have to remind payroll. It may still take 6 pay periods; 3 if you are paid every 2 weeks.

If you find that very little more is being withheld from your wife’s salary and/or your salary {or no more: I’ve seen that, too!}, you will want to go back to Payroll and point out their mistake. If that doesn’t work, you should send in a little estimated income tax.
On the irs.gov website, you will see the tax tables, which I have attached. Estimate your itemized deductions for 2008, multiply how many exemptions you think you will have for 2008 and subtract from what you estimate you and your wife’s gross income will be for 2008. That will roughly give you your taxable income. Divide the tax in the tax table by the taxable income in the tax table. This will give you an idea of what income tax liability you will face in 2008. Keep in mind that if one of you stops working that your gross income will be lower; may be much lower depending upon when during the year you stop working. Looking at the tax table and dividing your 2007 tax by your 2007 taxable income will give you an idea. The IRS tax table will give you an idea because this is an election year, and your income tax is not likely to rise in 2008. Good luck.

The Most Confusing Part Of The Income Tax Code

Okay, it’s no American Idol, but there’s lots of impressive competition this April for the title of  “Most Confusing Part of America’s Income Tax Code.”  That’s not surprising, considering that the basic 1040 instruction booklet now runs to 179 pages and National Taxpayer Advocate Nina E. Olson has branded  tax complexity the most serious problem facing taxpayers. In fact, preparing a tax return …

How To Find Tax Forms