The IRS Audit Blog

Posts Tagged ‘youtube’

Question: Are their true fans out there (see details)?

‘Blasting and bubbling, I fell on his neck with a scream,
Wave upon wave of demented avengers,
March cheerfully out of obscurity into the dream…’

Title of song and name of artist?

PS: Use Google, and Yamster commandos hidden in your local postboxes will turn your income tax returns into bedding material, then tip off the IRS that you should be audited.
‘Sheep Floyd???’ Yes, the legendary blues herder : )

Answer: Sheep: Pink Floyd

Don’t Get Scammed on Your Tax Refund

Itching to get your due from Uncle Sam? There are plenty of folks — legit and otherwise — who will happily promise to help you get a faster or bigger refund. My advice? Don’t fall for any of the come-ons, no matter how tempting they sound.

IRS Audit Myths Debunked

Question: I want to buy a GMC Acadia for my business and take advantage of the SUV/Truck tax incentive?

This is per IRS AJCA of 2004, section 280F, and section 179. The problem is the Acadia is NOT built on a truck frame. It meets the Gross Vehicular Weight of greater than 6000 pounds, but it is sketchy in the IRS rules of whether or not it is elegible for the 25% first year deduction. How can I tell if the GMC Acadia qualifies for this IRS deduction?

Answer: I’m not aware of any SUV “incentive”, especially under Section 179. Actually, there is a DIS-incentive for SUVs in Section 179 that limits Section 179 deductions on most big SUVs to $25,000 regardless of the price paid. If the Acadia is over 6,000 lbs, it’s in the restricted group.

CIGNA Reports Fourth Quarter and Full Year 2009 Results

PHILADELPHIA—-CIGNA Corporation today reported shareholders’ net income1 of $330 million, or $1.19 per share2, for the fourth quarter of 2009 compared with a shareholders’ net loss1 of $209 million, or $0.77 per share2, for the same period last year.

MeltDown #682 EMERGENCY ECONOMIC STABILIZATION

Question: When you submit your tax forms to the IRS do they go over it to make sure you did it right?

I was due a refund and got a different amount from what I calculated.

Answer: Returns are scanned and entered via computers, and maybe 10% are spot checked for accuracy by live humans.

Certain factors select you for further investigation, such as dependents you didn’t have last year, a very big difference in income (think 300% difference or more)

inclusion on any terrorist, or no-fly lists
and any other suspicious, or unusual circumstances surrounding you, or your money.

Reasons for your refund differing from what you submitted include:
user error on your part (including typos)
user error on IRS part (including computer errors)
outstanding collection orders on your IRS account, due to back taxes, child support, or other reasons.

If you feel the return was incorrect, you can contact the IRS, and request an explanation.

Cash vs. accrual accounting

There are two forms of accounting used by small businesses – cash and accrual. The basic difference between the two methods is the timing of income and expense recording.

IRS Tax Forms for 2010

Question: Real estate taxes, where to claim?

I’m using a tax prep software and during the process I’m asked to list the taxes I paid per the tax form mailed to me by my mortgage company. I don’t pay taxes by way of my mortgage, rather I have the money put aside to earn interest and then pay the taxes myself every 6 months when they are due.

The software and tax form asks the amount of taxes paid based on box number whatever of this tax form I got from the mortgage company, but as I stated, that box is empty. How do I claim these taxes on my tax return? If I list them in this box entry and yet the IRS sees that entry as zero or empty, won’t that throw up a red flag and possibly generate an audit?

Do I simply enter these taxes under the “sales taxes paid” deduction?

Answer: Even though you had your property taxes escrowed, you should still have the info of what was actually paid for your real estate taxes in 2008. Look on the mortgage interest 1098 form you received from your lender, or consult your local county tax collector to confirm the amount paid for last year.

Even if you do not have enough deductions to itemize, starting in 2008 the IRS will allow you to claim the standard deduction plus $500 property tax credit for individuals and up to $1000 property tax credit for married filling jointly couples.

Do not put this under sales tax. And don’t be concerned if the info isn’t on the 1098 your lender reports to the IRS – impounding/escrowing real estate taxes is a common practice.

Many changes in tax forms this filing year

When taxpayers sit down to file their 2009 returns, they will find plenty new to deal with as they look for refunds or get ready to pay the Internal Revenue Service by April 15.

Estate Planning : How Many Months Do You Have to File an Estate Tax Return?

IRS Made Trade-offs in Implementing Recovery Act

The Internal Revenue Service needed to scramble to implement various provisions of last year s Recovery Act to boost the economy as quickly as possible, but it now has to improve its enforcement and reporting to safeguard against abuses, according to a government report.

Cobra vs. G.I. Joe and United States – The Vortex