And from what I see in your posts, a very perceptive college student, apparently one of the few not brainwashed by their professors.I agree.
You have more insight into the Stimulus than most and are asking the right questions about it. Originally Posted by eccielover
- SpeedRacerXXX
- 04-17-2020, 09:05 AM
- Sienna91
- 04-17-2020, 09:06 AM
Well my philosophy is to always be learning
- Sienna91
- 04-17-2020, 09:07 AM
Thanks guys
- oeb11
- 04-17-2020, 10:13 AM
lifetime Learning is a very good philosophy of life .
Taxes - I went to Intuit turbotax - pay under $100 - v accountant at 1$K. For the last 3 years.
Got my taxes in online with refund check in under two weeks in the first week of March.
They covered everything i needed .
for those considering their taxes - take a look - it works well for me!
Taxes - I went to Intuit turbotax - pay under $100 - v accountant at 1$K. For the last 3 years.
Got my taxes in online with refund check in under two weeks in the first week of March.
They covered everything i needed .
for those considering their taxes - take a look - it works well for me!
- SpeedRacerXXX
- 04-17-2020, 10:58 AM
lifetime Learning is a very good philosophy of life .I never used an accountant to do my taxes. Mine were rather simple. I have used Turbo tax for many years and I too swear by it. A few years ago the on-line version stopped telling you what your percentage of being audited was, which I liked seeing.
Taxes - I went to Intuit turbotax - pay under $100 - v accountant at 1$K. For the last 3 years.
Got my taxes in online with refund check in under two weeks in the first week of March.
They covered everything i needed .
for those considering their taxes - take a look - it works well for me! Originally Posted by oeb11
- oeb11
- 04-17-2020, 01:42 PM
Folks with simple- verifiable returns are rarely audited - and the IRS has a shortage of auditors.
They have a set of "high-risk" criteria they use to separate out returns for closer inspection.
Why the IRS audits people
The IRS conducts tax audits to minimize the “tax gap,” or the difference between what the IRS is owed and what the IRS actually receives. Sometimes tax audits are random, but the IRS often selects taxpayers based on suspicious activity.
We’re against subterfuge. But we’re also against paying more than you owe. As you walk the line this tax season, here are seven of the biggest red flags likely to land you in the IRS audit hot seat.
1. Making math errors
When the IRS starts investigating, “oops” isn’t going to cut it. Don’t make mistakes. This applies to everyone who must file taxes. Don’t accidentally write a 3 instead of an 8. Don’t get distracted and forget to include that final zero. Mistakes happen, but make sure you double- and triple-check your numbers if you’re doing your own taxes. You’ll be hit with fines regardless of whether your mistake was intentional. If your math is a little shaky, using good tax preparation software or a tax preparer near you can help you avoid unfortunate errors that can lead to an IRS audit.
2. Failing to report some income
Easy way to score an IRS audit? Don’t report part of your income.
Let’s say you’re employed herding sheep for Farmer Joe and you pick up a little extra cash writing articles for a sheep-shearing publication on a freelance basis. You may be tempted to submit only the W-2 form from your herding job and keep the freelance writing income on your Form 1099 under wraps.
A 1099 reports nonwage income from things like freelancing, stock dividends and interest. One type of 1099, the 1099-MISC, typically reports amounts paid to independent contractors.
Well, guess what? The IRS already knows about income listed on your 1099 because the publication sent it a copy, so it’s only a matter of time before it discovers your omission.
>>MORE: Check out our guide to taxes for freelancers
3. Claiming too many charitable donations
If you made significant contributions to charity, you’re eligible for some well-deserved deductions. This bit of advice is common sense: Don’t report false donations. If you don’t have the proper documentation to prove the validity of your contribution, don’t claim it. Pretty simple. Claiming $10,000 in charitable deductions on your $40,000 salary is likely to raise some eyebrows.
>>MORE: See a list of IRS customer service phone numbers to call for help
4. Reporting too many losses on a Schedule C
This one is for the self-employed. If you are your own boss, you might be tempted to hide income by filing personal expenses as business expenses. But before you write off your new ski boots, consider the suspicion that too many reported losses can arouse. The IRS may begin to wonder how your business is staying afloat. IRS Publication 535 has details.
>>MORE: Learn how Schedule C works and whether you have to fill one out
5. Deducting too many business expenses
Along the same lines as reporting too many losses is reporting too many expenses. To be eligible for a deduction, purchases must be 1) ordinary and 2) necessary to your business. A professional artist could probably claim paint and paintbrushes because such items meet both requirements. A lawyer who paints for fun and doesn’t turn a profit on the works may have a problem. The questions to ask are: Was the purchase common and accepted in the trade or business? Was it helpful and appropriate for the trade or business?
6. Claiming a home office deduction
Home office deductions are rife with fraud. It may be tempting to give yourself undeserved deductions for expenses that don’t technically qualify. The IRS narrowly defines the home office deduction as reserved for people who use part of their home “exclusively and regularly for your trade or business.” That means a home office can qualify if you use it for work and work only. Occasionally answering emails on your laptop in front of your 72-inch flat screen TV probably doesn’t qualify your living room as a deductible office space. Claiming a home office deduction may be more defensible if you have set off a section of your home strictly for business purposes. Be honest when you report expenses and measurements.
>>MORE: See some other tax deductions for self-employed people
7. Using nice, neat, round numbers
In all likelihood, the numbers on your 1040 form and supporting documents will not be in simple, clean intervals of $100. When making your calculations, be precise and avoid making estimations. Round to the nearest dollar, not the nearest hundred. Say you’re a photographer claiming a $495.25 lens as a business expense; round that to $495, not to $500. An even $500 is somewhat unlikely, and the IRS may ask for proof.
Who gets audited?
According to IRS statistics, people in higher tax brackets and people who report no income at all get the most attention. Adjusted gross income% of total returns filed in 2016% of these returns examined in 2017 No adjusted gross income1.692.55 $1 to $24,99936.470.71 $25,000 to $49,99923.330.49 $50,000 to $74,99913.260.48 $75,000 to $99,9998.590.45 $100,000 to $199,99912.190.47 $200,000 to $499,9993.600.70 $500,000 to $999,9990.581.56 $1,000,000 to $4,999,9990.263.52 $5,000,000 to $9,999,9990.027.95 $10,000,000 or more0.0114.52 All returns100.00.62
Ramona Paden contributed to this article.
FYI
They have a set of "high-risk" criteria they use to separate out returns for closer inspection.
Why the IRS audits people
The IRS conducts tax audits to minimize the “tax gap,” or the difference between what the IRS is owed and what the IRS actually receives. Sometimes tax audits are random, but the IRS often selects taxpayers based on suspicious activity.
We’re against subterfuge. But we’re also against paying more than you owe. As you walk the line this tax season, here are seven of the biggest red flags likely to land you in the IRS audit hot seat.
1. Making math errors
When the IRS starts investigating, “oops” isn’t going to cut it. Don’t make mistakes. This applies to everyone who must file taxes. Don’t accidentally write a 3 instead of an 8. Don’t get distracted and forget to include that final zero. Mistakes happen, but make sure you double- and triple-check your numbers if you’re doing your own taxes. You’ll be hit with fines regardless of whether your mistake was intentional. If your math is a little shaky, using good tax preparation software or a tax preparer near you can help you avoid unfortunate errors that can lead to an IRS audit.
2. Failing to report some income
Easy way to score an IRS audit? Don’t report part of your income.
Let’s say you’re employed herding sheep for Farmer Joe and you pick up a little extra cash writing articles for a sheep-shearing publication on a freelance basis. You may be tempted to submit only the W-2 form from your herding job and keep the freelance writing income on your Form 1099 under wraps.
A 1099 reports nonwage income from things like freelancing, stock dividends and interest. One type of 1099, the 1099-MISC, typically reports amounts paid to independent contractors.
Well, guess what? The IRS already knows about income listed on your 1099 because the publication sent it a copy, so it’s only a matter of time before it discovers your omission.
>>MORE: Check out our guide to taxes for freelancers
3. Claiming too many charitable donations
If you made significant contributions to charity, you’re eligible for some well-deserved deductions. This bit of advice is common sense: Don’t report false donations. If you don’t have the proper documentation to prove the validity of your contribution, don’t claim it. Pretty simple. Claiming $10,000 in charitable deductions on your $40,000 salary is likely to raise some eyebrows.
>>MORE: See a list of IRS customer service phone numbers to call for help
4. Reporting too many losses on a Schedule C
This one is for the self-employed. If you are your own boss, you might be tempted to hide income by filing personal expenses as business expenses. But before you write off your new ski boots, consider the suspicion that too many reported losses can arouse. The IRS may begin to wonder how your business is staying afloat. IRS Publication 535 has details.
>>MORE: Learn how Schedule C works and whether you have to fill one out
5. Deducting too many business expenses
Along the same lines as reporting too many losses is reporting too many expenses. To be eligible for a deduction, purchases must be 1) ordinary and 2) necessary to your business. A professional artist could probably claim paint and paintbrushes because such items meet both requirements. A lawyer who paints for fun and doesn’t turn a profit on the works may have a problem. The questions to ask are: Was the purchase common and accepted in the trade or business? Was it helpful and appropriate for the trade or business?
6. Claiming a home office deduction
Home office deductions are rife with fraud. It may be tempting to give yourself undeserved deductions for expenses that don’t technically qualify. The IRS narrowly defines the home office deduction as reserved for people who use part of their home “exclusively and regularly for your trade or business.” That means a home office can qualify if you use it for work and work only. Occasionally answering emails on your laptop in front of your 72-inch flat screen TV probably doesn’t qualify your living room as a deductible office space. Claiming a home office deduction may be more defensible if you have set off a section of your home strictly for business purposes. Be honest when you report expenses and measurements.
>>MORE: See some other tax deductions for self-employed people
7. Using nice, neat, round numbers
In all likelihood, the numbers on your 1040 form and supporting documents will not be in simple, clean intervals of $100. When making your calculations, be precise and avoid making estimations. Round to the nearest dollar, not the nearest hundred. Say you’re a photographer claiming a $495.25 lens as a business expense; round that to $495, not to $500. An even $500 is somewhat unlikely, and the IRS may ask for proof.
Who gets audited?
According to IRS statistics, people in higher tax brackets and people who report no income at all get the most attention. Adjusted gross income% of total returns filed in 2016% of these returns examined in 2017 No adjusted gross income1.692.55 $1 to $24,99936.470.71 $25,000 to $49,99923.330.49 $50,000 to $74,99913.260.48 $75,000 to $99,9998.590.45 $100,000 to $199,99912.190.47 $200,000 to $499,9993.600.70 $500,000 to $999,9990.581.56 $1,000,000 to $4,999,9990.263.52 $5,000,000 to $9,999,9990.027.95 $10,000,000 or more0.0114.52 All returns100.00.62
Ramona Paden contributed to this article.
FYI
- Chung Tran
- 04-17-2020, 07:13 PM
Who gets audited?Poppycock..
[I]According to IRS statistics, people in higher tax brackets and people who report no income at all get the most attention. Originally Posted by oeb11
maybe your article writer slipped up, but this doesn't even make sense. why would a NO INCOME person get audited? what would there be to audit? you might ask someone to file, knowing they have income, but you wouldn't AUDIT.
substitute "low" for "no", and it makes perfect sense.. and is FACTUAL.
https://www.usatoday.com/story/money...ps/4552393002/
- Lucas McCain
- 04-17-2020, 08:05 PM
I have 3 friends who have their own businesses. They do not take a salary. They call it "draws". They know I have a CPA license and they always ask me to look over their books before tax time. I do it for free because I don't need their money but I tell all 3 of those motherfuckers that their "draws" are actually salary and to not be stupid and give themselves a salary.
I made it clear to them to not call me when the IRS comes knocking on the door because I already told them they eventually will.
I made it clear to them to not call me when the IRS comes knocking on the door because I already told them they eventually will.
- gnadfly
- 04-17-2020, 08:15 PM
- Chung Tran
- 04-17-2020, 08:28 PM
Like my calls of you being a racist, racist. WV is 95% white.nope.. I happened to be referring to part of the 5%, the mixed race Hillbillies who cook up their own Moonshine. everything is Race to you
Originally Posted by gnadfly
I have 3 friends who have their own businesses. They do not take a salary. They call it "draws". Originally Posted by Lucas McCainlet me guess.. S-Corporation Dummies, who pay themselves "dividends"?
or maybe LLC Owners who draw down E&P, and pretend the Company didn't earn much?
these Twats are too cheap to hire an Accountant, besides that they don't really want one, they couldn't cheat as readily. they want to run their scheme by an Accountant, without paying, hoping they will hear what they want to hear, which is "your scheme will not be detected".
- Levianon17
- 04-17-2020, 08:39 PM
I never used an accountant to do my taxes. Mine were rather simple. I have used Turbo tax for many years and I too swear by it. A few years ago the on-line version stopped telling you what your percentage of being audited was, which I liked seeing. Originally Posted by SpeedRacerXXXMe too. I did mine in February and got my refund back before the infamous Pandemic. If I was a real rich guy with all kinds of complicated circumstances, I would still be fooling with it, lol.
- Lucas McCain
- 04-17-2020, 08:49 PM
let me guess.. S-Corporation Dummies, who pay themselves "dividends"?What the fuck are you even talking about weirdo? I have a lot of other licenses as well for my occupation. I'm not a working accountant. I work in finance. I'm just an accountant on paper. I only got an accountancy degree and CPA license because I knew it would pay better in the world of finance. Unlike your broke barebacking pathetic ass, some men actually care about making a lot of money and will do what is necessary to get where they want to be financially.
or maybe LLC Owners who draw down E&P, and pretend the Company didn't earn much?
these Twats are too cheap to hire an Accountant, besides that they don't really want one, they couldn't cheat as readily. they want to run their scheme by an Accountant, without paying, hoping they will hear what they want to hear, which is "your scheme will not be detected". Originally Posted by Chung Tran
What part of that they are my friends that you do not understand? I know a hell of a lot more than most people they can hire and I work for free. Go get some good friends and you'll understand how it works. I help them with numbers. They help me with their businesses. We do not charge each other for our services. It's friendship.
By the way; what the fuck do you do for a living? The answer is nothing. You're just another disability check loud mouth loser. I'm really not sure what you didn't get from guys like me who ran you out of the SH. Do you think you have protection in here? lol
- gnadfly
- 04-17-2020, 09:00 PM
- Lucas McCain
- 04-18-2020, 02:19 AM
CT doesn't come across as a racist to me. He actually can be intellectual on occasion. But he is pretty much just a crybaby so fuck that weirdo pervert. I respect no man who whines like his bitch ass does.
- LexusLover
- 04-18-2020, 03:53 AM