Have you been wondering about your chances for an IRS audit this year? There’s a good chance you might see the tax man at your front door. But, if you really wanna know your percentage chances for an IRS field examination; IRS correspondence audit; or an IRS office audit, go to the following website: http://www.smbiz.com/sbfaq29.html
Very Interesting. The audit of tax returns on all levels appears to be going up.
Our Economy is broken and this is what our Government is spending money on?
“Incredibly, Washington is spending $2.6 million training Chinese prostitutes to drink more responsibly on the job. This is the kind of wasteful spending that President Obama and Congress have stubbornly refused to cut. Instead, they planned to raise taxes on families and entrepreneurs by trillions of dollars! Only action by citizens like you will break the Washington liberals of this kind of frivolous splurging.”
If you use an S.U.V. more than 50% of the time in a business related activity, ( and it’s not just for Self-Employed, either! Remember, being an “employee” is a trade or business too), then you may claim the Section 179 write off.
But, there are a couple of more requirements:
1. It has to have a gross vehichle weight, (G.V.W.), of more than 6,000 lbs
2. There seems to be a limitation on depreciation of vehicles for heavy vehicles guidelines, see GVW of 14,000 lbs.
Are you unsure of your vehicle’s GVW? Hop on the interent and go to www.intellichoice.com and www.carsdirect.com/research.
So, you’ve worked hard for a number of years; you own a Corporation; you’ve paid your taxes; and you’ve managed to save some cash in your business. Ah yes, everything’s right with the World.
Hold everything! Wait for it….; If you’ve saved too much and you haven’t paid a “Dividend”, and you don’t have plans for expansion, capital purchases, or other meaningful changes for your retained earnings, the IRS will come calling. The IRS can impose a penalty for excess accumulations of earnings.
General working capital requirements are set at $150,000 for personal service corporations. In short, the IRS can impose a penalty on a taxpayer for failure to pay dividends to the owners.
If you paid more than $600 for Contract Labor, you must file Form1099-Misc by February 28, 2012.
Form 1040 tax filing deadline is on April 17, 2012. There is a new tax form for reporting Capital Gains, see Form 8949, (irs.gov).
To have your tax refund direct deposited to your banking institution go to http://www.treasurydirect.gov/ . Could save you the hassle of a lost refund check.
For parents of college age children, check this out on education expenses http://www.irs.gov/pub/irs-pdf/p17.pdf Use the chart for Education Expenses.
The Standard Mileage Rate for Medical travel went up to 23.5 cents per mile. Cost of traveling to receive medical care, by car, plane, boat, etc… are deductible expenses.
See IRS Publication 502 for Medical and Dental Expenses.
You may be able to take a “child adoption credit” for a child you adopted during the year. see http://www.irs.gov/pub/irs-pdf/p17.pdf
Medical Expenses are tough when it comes to newborns. You can’t deduct the cost of a Nurse unless it’s for an illness or other malady. Baby sitting is not allowed, but see Childcare Credit http://www.irs.gov/pub/irs-pdf/p17.pdf .
If you live in an old home or rent one, the cost of removing “lead based paint” is a deductible expense. Yummy!
If late term abortions are illegal where you live, then you are not allowed to deduct the cost of the procedure. In addition, if you do have it done, and it is illegal, then you should turn yourself into the police because you are considered a murderer.
Damages from personal injury suits are generally non-taxable. But… Whoops; Don’t slip up. If part of the settlement includes payment of medical expenses, and if you previously deducted those expenses…. Income Baby! This is a tricky one.
Check Back on this site. I’ll be adding more in the days to come
Let’s face it. If you are audited you’re going to want the know “the bottom line”. If you’re not going to jail, (and very few do), you’re going to want to know your options. With every audit letter that goes out, the pamphlet, “Your Appeal Rights” go with it.
No matter how long your audit takes, no matter how many turns it may take, in the end you have appeal rights. It’s important to keep that idea in mind. The revenue agent is not the final word, (even though they try to make you think so). Knowing that you can have a set of impartial eyes looking at your case, more specifically, the revenue agent’s work, gives hope. Raw Deal? Go to Appeals.
Another really great part of the audit process goes beyond Appeals and to District Council. Another set of eyes and a different objective. District Council is where it all comes to completion. Settlement and a clear eyed evaluation of chances. Your chances of winning versus the IRS chances of losing.
If you’re being audited and need advice, give me a call. 972-839-0456. Wayne Parsons, Jr., CPA
http://www.taxquips.com/index.php?cat=TaxQuips Great tax information
Owing the IRS back taxes can be one of the most stressful times of your life. But, tax debts can be negotiated in a number of ways that don’t leave you living under a bridge. Let’s talk about settling with the IRS tax man.
1. Installment Agreements can be negotiated with the IRS over the telephone. If you’ve received an IRS notice or IRS demand letter, you will will find a telephone number to call for assistance. Now to prevent excessive time waiting on an IRS employee to assist you, there some preliminaries that you should have before you call the IRS.
a. A copy of the tax form from which the tax arose, ie your form 1040 or 941 payroll return;
b. A financial form, filled out. For individuals that would be Form 433-F and for businesses form 433-B. You can get these forms at irs.gov . Be sure to read the instructions carefully. It will as for copies of your Wage Statements, Utilities Bills, etc. Have it ready.
c. Copies of bank statements should be available.
Having these items can save you hours of grief.
If you owe more than you can ever hope to pay, you’re going to need professional help. An offer in compromise can be a very useful settlement tool to pay less than you owe to the IRS.
For additional help, please call my office at 972-839-0456
Remember, being audited is like standing trial for a crime. Guilty or not, some folks go to jail for tax crimes they didn’t commit.
In my career dealing with the IRS, I’ve run into my share of self-righteous pricks, assholes, do-gooders, tax crime fighters, and general dumbasses. No, really, this is no hype. My idea is that you don’t take chances when you get your IRS audit letter. Sure, it’s okay to call and make an appointment. But you be the judge of the IRS demeanor. Sometimes it’s hard to judge. I think it’s always best to get a qualified representative. Go to IRS.Gov and search taxpayer rights. Taxpayers don’t have to be present for IRS interviews. If you or your representative needs my help: 972-839-0456 here in Dallas, Highland Park, University Park and the areas surrounding SMU (Southern Methodist University). We’ve been in the Dallas area for over 30 years.
