by steve | Jun 25, 2010 | IRS Tax Advice
IRS and the Audit of a Church
Scope of Examination
The IRS may examine church records and religious activities only to the extent necessary to determine federal tax liabilities. This includes examinations to:
IRS will determine the initial or continuing qualification of the organization under IRC § 501(c)(3), including classification as a church under IRC §§ 509(a)(1) and 170(b)(l)(A)(i),
IRS will determine the amount, if any, of tax due to unrelated business activity within the meaning of IRC § 513 or other activities that may be subject to tax, or
IRS will determine the amount of any IRC § 4958 tax due from a disqualified person with respect to a transaction involving a church.
Church records include all regularly kept church corporate and financial records, including (but not limited to) corporate minute books, contributor and membership lists, and church books of account. Church books of account include the general ledger, general journal; accounts receivable ledgers, accounts payable ledgers, cash disbursements book, cash receipts books, all subsidiary ledgers, voucher register, check register, purchases journal, sales journal, check books, savings account books, and all specialized journals. In addition, church records include private correspondence between a church and its members that is in the possession of the church.
An examination by IRS is conducted in accordance with the church examination procedures may disclose that the organization is not exempt under IRC § 501(c)(3), is subject to federal tax, or IRC § 4958 tax is due from a disqualified person with respect to a transaction involving a church, for reasons other than those that led to the examination. In such cases, the examiner may expand the examination, without additional procedural requirements, to include examination of any records necessary to resolve the new issue or issues.
Should you have any questions call Freshstarttax today 1-866-700-1040
by steve | Jun 24, 2010 | IRS Tax Advice
IRS Collection Procedural Question of the DAY
Question of the DAY Is there any special assistance available if you are experiencing economic harm or as systemic problem, or are seeking help in resolving tax problems that have not been resolved through normal channels?
Answer: A STRONG ” Yes. ” The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should.
Fresh Start Tax one of the leaders in the industry can help you with these problems. Call us today. 1-866-700-1040
The service is free, confidential, tailored to meet your needs, and available for businesses as well as individuals. There is at least one local taxpayer advocate in each state, the District of Columbia, and Puerto Rico.
Call us today. 1-866-700-1040
by steve | Jun 23, 2010 | Tax News
How to Interpret Criminal Investigation Data
Since actions on a specific investigation may cross fiscal years, the data shown in cases initiated may not always represent the same universe of cases shown in other actions within the same fiscal year.
FY 2009 FY 2008 FY 2007
Investigations Initiated
416 410 516
Prosecution Recommendations
250 326 300
Indictments/Information
228 274 266
Sentenced
240 249 278
Incarceration Rate*
85.8% 80.3% 80.6%
Avg. Months to Serve
33 44 38
*Incarceration includes confinement to federal prison, halfway house, home detention, or some combination thereof.
Data Source: Criminal Investigation Management Information System.
THE IDEA HERE, HIRE A COMPANY THAT DOES NOT GET YOU IN THIS SITUATION. CALL FRESH START TAX 1-866-700-1040
by steve | Jun 22, 2010 | IRS Tax Advice, Tax News
We run across so many taxpayers that want to come clean and they just do not know what to do. Some taxpayers have not filed for 20 years, some never. While each situation is completely different, Nina Olsen, the IRS Taxpayers Advocate
explains the next steps process on her comments from Marketplace March 28th, 2010
Her comments:
NINA OLSON:” The IRS has a policy where if the taxpayer comes in voluntarily, and we have not found that tax payer first — we really ask the taxpayer to go back and file six years. Then, the IRS is able to provide — not necessarily all six years worth of data, but any time there’s a W-2 or 1099 going back about five years — we can provide that information.
So, six years — not the full 20. And the IRS may already have the info on file. Olson also said if they hadn’t been caught by now, it’s probably because the government actually owed them for some of those years.
And if it turns out he’s on the hook, the IRS has payment plans to help ease the pain a little.”
For clients of Fresh Start Tax, the first thing we do is send a power of attorney in on all our clients.We deal with the IRS not our clients. We request the last 6 six years of income records from the IRS on the practitioners hot line services. The IRS has on file all income reports and they are readily available for our office.We request any records of income and expenses that the taxpayer may have in their possession. We discuss each years tax return with the client and file the tax return. We make sure the tax returns make sense that is the cost of living, the bank statements , a financial statement and the tax return have a common cord of sensibility.
The last part of the process is to find out if there is a tax due, how will it be paid in full. Many times we file offers in compromise and settle the debt for the clients. Fresh Start Tax and its staff has been preparing tax returns for taxpayer like this well over 27 years. We can help you today. 1-866-700-1040
by steve | Jun 21, 2010 | IRS Tax Advice
Documentation required by Internal Revenue Service for the 433A, B, F
To expedite the resolution on IRS accounts, please have the following information available when contacting the IRS.
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Valid Power of attorney F2848 covering all tax periods.
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Explain in detail why the taxpayer is not able to full pay or borrow to full pay
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Completed Form 433- A, B or F
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Copies of delinquent tax returns or valid extensions on file
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Three months of current pay stubs for both the individual or the business if applicable
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Three months of current bank statements and savings accounts (all accounts)
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Value of all property and/or available equity. In some cases verification is necessary on the fair market vales. IRS uses Zillow.com for their appraisals
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Investment income
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Value of 401K/Retirement
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Year/make of vehicles, value, equity, balance owed, and monthly payments
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Employer’s information including work number
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Number of individual’s living in the household
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Secured loan(s) – amount of loan and remaining balance(s)
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Life insurance policies, (whole or term), any borrowing ability? And/or value of policy
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Profit and Loss statements for self-employed taxpayers
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Commission statement
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Substantiation of Court ordered payments
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Substantiation of payments being made
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Spouse’s income and source with name/address/phone number
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Out-of-pocket medical expenses
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Pension income and/or Social Security income
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Rental income
Additional information and /or documentation may be needed to determine disposition of the account.
Should you have any questions regarding that documentation, call Fresh Start Tax today 1-866-700-1040
