Audit Feed

The coronavirus has affected the U.S. Tax Court again. Last week, the federal court that presides over taxpayer disputes with the Internal Revenue Service announced that it was going back to mail and other deliveries only. "Effective Friday, October 30, 2020, and until further notice, the United States Tax Court will be suspending its in-person acceptance of hand-delivered documents," according to a press release by the court. Timely mailings only: The announcement noted that in addition to the "timely mailing" of petitions or notices to "comply with statutory deadlines … of appeal," the Tax Court's eAccess and eFiling systems remain... Read more →


Robert Smith surprised the 2019 class of Morehouse College graduates with a pledge to pay off their student loans. Watch the happy moment via Bloomberg Quick Take on YouTube. It was one of last year's best feel-good stories. On May 19, 2019, billionaire entrepreneur and philanthropist Robert F. Smith promised graduates of Morehouse College listening to his commencement address that he would pay off their college debt. The approximately 400 grads at the historically black college in Atlanta were stunned. Then delighted. And the country cheered Smith's benevolence and commitment to making at least a little bit of the United... Read more →


John McAfee's banner image on his Twitter account. If you've waiting until the upcoming October extension deadline to file, chances are you wanted the extra time to ensure that you got your filing right. That's smart. Making mistakes or overlooking tax breaks could cost you, not only money but also time if you end up having to answer Internal Revenue Service questions about your filing. And when an audit — or examination as the IRS likes to call the process — definitely doesn't go your way, you could end up in more trouble. That's what happened to John David McAfee.... Read more →


The Tonight Show host Jimmy Fallon tousles Donald J. Trump's hair during the Republican candidate's Sept. 15, 2016, appearance on the late-night television program. That hair. He spent $70,000 on that hair. Yes, I — and you and everybody — is talking about that $70,000 tax deduction claim by Donald J. Trump on his taxes, which were obtained by The New York Times and detailed in an expansive story this past weekend. Trump's hair has long been a point of curiosity and comedy. He knows it. He even has played it up with voters and on non-Apprentice television appearances. I... Read more →


If you live in Ireland and are thinking of playing a little fast and loose when it comes to taxes, make sure no one is looking. That could be harder than you think. Judging from government statistics, tax evasion reports from the public continue to increase. Last year, nearly 6,000 people filed so-called good citizen reports with Irish Tax and Customs, that nation's version of the United States' Internal Revenue Service. More reports in last five years: These alerts of suspected (or known) tax evasion or other illegal activity have grown exponentially since mid-2015. That's when Irish tax officials began... Read more →


The coronavirus pandemic has not only affected sports leagues, athletes and fans, but also gamblers and the state tax collectors that have come to rely on that related tax revenue. Shortened seasons, revised playoff rounds, cardboard fans in stands. Still, Americans' love of sports and boredom with COVID-19 self-isolation, along with the events being televised, has helped the seasons continue. But the actual reduction in the games mean fewer events on which to place bets. Unless bettors make that up by betting more on the remaining games, associated revenue, tax and otherwise, is likely to fall. And now a new... Read more →


It's been almost a week since Tax Day 2015. That's why today's Tax Form Tuesday is celebrating Form 1040. Actually, this week's feature includes not just the actual tax return you recently sent to the Internal Revenue Service, but also the many forms and schedules that accompanied your return, plus all the associated documents you used to complete it. Yep, we're talking tax record keeping. There's no federal tax law or IRS regulation detailing a preferred way to keep your tax records. That's because every taxpayer situation is different. But the one constant is that you do need to hang... Read more →


You're working on your tax return and discover that you are that close to shaving a few more dollars off what you owe Uncle Sam. Many in this situation are tempted to get creative. Don't. The Internal Revenue Service has seen it all. OK, most of it. The bottom line is that sketchy tax deduction claims are invitations to IRS auditors. Crazy and possibly costly tax break claims: Earlier this year before Tax Day got pushed to July 15 by coronavirus precautions, Washington Post financial columnist Michelle Singletary talked with some tax professionals about the wild write-offs they've seen. Singletary... Read more →


Tax notices are among the pieces of mail delivered by the U.S. Postal Service in recent weeks. Due to COVID-19 complications, those documents detailing IRS questions about earlier filings have later due dates. The deadline for some is this Friday, July 10. It's the first full week of July 2020, meaning that the countdown clock over there in the ol' blog's right column (shameless plug) shows that we're just single digit days away from this year's July 15 filing deadline. And some folks have an even earlier due date. If you recently received an Internal Revenue Service notice, you might... Read more →


One of the reasons the Internal Revenue Service has called more of its staff back to their offices is so they can deal with the backlog of tax notices. When the agency sent most personnel home earlier this year as a coronavirus pandemic precaution, some previously-printed balance due notices didn't get mailed. Now with some IRS operations restarting across the county, these notices will be delivered to taxpayers by the U.S. Postal Service in the next few weeks. Original notices, old dates: These notices, however, won't be updated versions produced by staffers who now are back at their desks. They... Read more →


Looking for some weekend or beyond tax reading? Then check out the latest Internal Revenue Service Research Bulletin. Notice that I didn't say light tax reading. This collection of papers presented last June at the 9th Annual Joint Research Conference on Tax Administration, an event cosponsored by the IRS and the Urban-Brookings Tax Policy Center, is 252 pages. And some of the topics can be dense. The presenters and attendees at the 2019 conference, both in persona and online, included researchers from many areas of the IRS, officials from other government agencies and academic and private sector experts on tax... Read more →


Happy Pi Day 2014. March 14 is the annual celebration of pi, usually indicated by the Greek letter π, since the 3/14 calendar format is a close representation of pi's first three digits. What exactly is pi? Naturally, I went to the internet to find out, so math experts please cut me a slice of slack here. The consensus is that pi is a number that originally was defined as the ratio of a circle's circumference to its diameter. It's a mathematical constant, meaning it isn't changed by the size of the numbers it is used to equate. It's also... Read more →


Law schools and their students, like these at Georgia State University College of Law, are major contributors to the success of Low-Income Taxpayer Clinics nationwide. (Photo courtesy Philip C. Cook LITC) Sometimes, taxpayers encounter issues more serious that just filing their returns. They discover that the Internal Revenue Service has some questions about a prior return or an appeal of an agency decision isn't going as expected or that the federal tax collector is taking his name to heart and initiating collection procedures. What to do? Specifically, what to do if you don't have much money? Find your nearest Low-Income... Read more →


Oh, Canadians. A recent report on tax attitudes north of the 49th parallel is upsetting my idealized vision of your country. A recent Canada Revenue Agency (CRA) internal memo, first reported by Blacklock's Reporter, found that around 20 percent of Canadians believe the benefits of tax cheating outweigh the risks. In fact, the CRA said 26 percent don't think that tax officials will discover their tax evasion. The CRA also found that many Canadians did not view tax evasion on amounts less than $1,000 to be "serious tax cheating." And it classified 13 percent as outlaws who view tax evasion... Read more →


Having plenty of money apparently also has some drawbacks. Really. One is that you could soon get more attention from the Internal Revenue Service, especially if you've been, shall we say, a bit lax in letting Uncle Sam know about your how well you're doing. The IRS announced today that it will be sending agents to visit taxpayers who haven't filed returns or didn't do so in a timely manner in 2018 or previous years. These particular in-person tax inquiries, according to the IRS, will be on those whose income is $100,000 or more. Audit income disparities: These in-person audits... Read more →


I finally got the final 1099 I was waiting for yesterday. Yay! Now I can file my return. The 1099 situation for a retired Southern California dentist, however, didn't go so smoothly. David Powell, got a 1099 from MetLife insurance showing he was paid $1,500 for dental work he says he never performed. Since MetLife also sent that 1099 to the Internal Revenue Service, this meant Powell was on the hook for taxes on money he never earned. Double check documents immediately: Powell's case is why you always need to look at every tax statement — 1099s, W-2s, bank, brokerage... Read more →


You just read my post on tax filing requirements (thanks!) and discovered you don't have to file a Form 1040 this year. So, as fictional television attorney (though not a tax specialist) Jimmy McGill might say, "'S'all good, man." Right? Not necessarily. Sometimes even if you don't have to file a federal tax return, it's to your benefit to do so. Here are 10 situations when you should send the Internal Revenue Service a return: You're due a refund. This often is the case if you had federal income tax withheld. The only way to get any of that prepaid... Read more →


Yes, that could be a real IRS revenue officer knocking on your door if live in Arkansas, Texas or Wisconsin and have ignored prior notices to pay your overdue tax bill. Have you been a bit remiss in meeting your tax duties? If so and you live in Arkansas, Texas or Wisconsin, you've likely or soon could find an Internal Revenue Service agent on your doorstep. The IRS has announced that these in-person visits are part of a larger effort by the agency to, it its words, ensure fairness in the tax system. The special compliance efforts will encompass both... Read more →


Halloween is almost here. Are you still looking for a costume? Here's a suggestion. Go as the Internal Revenue Service. On this annual night of frights, Uncle Sam's tax collector offers plenty of scares. Here are four terrifying tax situations to get you in a Halloween mood. Be afraid, but also be prepared, on this Oct. 31 as well as year-round. 1. Audit: There's no need to build up to this scare, which can occur any time of the year. Fear of an IRS audit is one of the biggest tax terrors for most people, even (or maybe especially) those... Read more →


Teslas are the most popular electric vehicles (EVs) in the United States. Creator Elon Musk, however, isn't riding on his EV's laurels. The space exploration and auto impresario says some unusual custom horn sounds are coming. That's right, the honk of your high-dollar Tesla soon could replicate fart and goat noises. That should spark more potential owner interest, although the biggest market for this change, 9-year-old boys, can't drive. Still, Musk knows he needs to do something to keep interest in Teslas high since the EVs no longer qualify for the federal tax credit. Worse, a new report from an... Read more →