Audit Feed

The late Robin Williams said that cocaine is God's way of telling you that you are making too much money. I think you can add luxury autos to that list. The hubby and I spotted this McLaren MP4-12C in our local shopping center's parking lot. Note to self: get to know my obviously much wealthier neighbors! Here in Austin, I regularly see high-dollar cars. A lot of them. On just the roads I routinely travel I've spotted Teslas, Ferraris, Lamborghinis, Mercedes-Benz G-Wagons, Maseratis, Lotuses and even that McLaren pictured above. Yes, I am jealous. While I am happy with my... Read more →


It's official. We will not see Donald J. Trump's tax returns before we vote on Nov. 8. During an interview Oct. 30 on NBC's Meet the Press, Indiana Gov. Mike Pence, Trump's running mate, reiterated that Trump will not release his returns until after an audit is completed. This Twitter image of Donald J. Trump signing his 2014 return on Oct. 15, 2015, is probably the closest we'll get to seeing the Republican presidential candidate's tax filings. "All right, so not before the election?" host Chuck Todd asked. "Yeah," Pence replied. Breaking election tradition, again: If the Republican presidential nominee... Read more →


$10,162. That's how much of a federal tax refund that Republican vice presidential nominee Mike Pence and his wife Karen received on their 2015 tax return. Indiana Gov. Mike Pence, GOP vice presidential candidate, campaigning among Ohio State tailgaters during a stop earlier this month in the key Nov. 8 election state. (Photo via @mikepence Twitter account) Since the Pences' refund is almost four times the amount of the average tax refund of $2,732 (per Internal Revenue Service filing data through May 13), the $10,162 that the Pences are getting back from Uncle Sam also earns this week's By the... Read more →


"I can't define tax evasion, but I know it when I see it," Fred T. Goldberg Jr. once said. Fred Goldberg, in his capacity as Assistant Secretary of the Treasury for Tax Policy, the position he took immediately after leaving his IRS commissioner post, answers questions from the Joint Committee on Taxation in February 1992. (Click image to view the full video of the hearing via C-SPAN.) Now I'm not saying that Goldberg, commissioner of the Internal Revenue Service from 1989 to 1992, was thinking about his adaptation of the legendary Supreme Court "I know it when I see it"... Read more →


Warren Buffett is the third richest man in the world. He's also like a lot of us who are a whole lot poorer. Buffett wants to know what's on Donald J. Trump's tax returns. Warren Buffett challenges Donald Trump to a tax return face-off during a rally for Democratic presidential nominee Hillary Clinton in Omaha, Nebraska, on Aug. 1, Click image to watch the full CNN Money video. He's the third billionaire within a week to call on Trump to release his returns. Former New York City mayor and media mogul Michael Bloomberg and Mark Cuban, owner of the NBA's... Read more →


Work-related moving expenses are tax deductible. You don't even have to itemize. The claim is made as one of the adjustments to income, generally referred to as an above-the-line deduction, right on the long Form 1040. Vintage moving van | Alden Jewell via Flickr But don't think just because this is a relative easy tax write-off that the Internal Revenue Service will just give the claim a cursory glance. IRS examiners will be looking. Just as Giliard Schwartz. A really big move: The San Antonio, Texas, woman claimed $330,000 in moving expenses on her 2012 tax return. Instead of that... Read more →


The bad tax news is that your chances of being audited just went up a bit. The good tax news is that if you're looking for a job with the Internal Revenue Service, the agency is hiring hundreds of new enforcement agents. In an email sent to tax professionals last week, the IRS announced that it is accepting applications for a number of enforcement positions, potentially as many as 700, around the country. These will be the first significant hires in the enforcement area in more than five years. Internal Revenue Service Commissioner John Koskinen, in a May 3 memo... Read more →


We're now into the single digit countdown (you are watching the clock in the right column, right?) to the April 18 tax return (and due tax payment!) deadline. That means millions of us are starting to get a little frantic. And that can be really, really bad when it comes to taxes. If we tackle our returns in the same state as this faux Grumpy Cat, we'll make the same costly mistakes he's bragging about to his neighborhood bar buddies. So take a breath. Put down the Cosmo (or whatever adult beverage you prefer) and cigarette. Tax tips time: And... Read more →


Diane L. Kroupa was appointed as judge to the U.S. Tax Court in June 2013. Her term was supposed to have run for 15 years, but in June 2014 she retired early. This week Kroupa, 60, was indicted on two counts each of tax evasion, filing false returns and obstruction of an IRS audit. Her husband, Robert E. Fackler, 62, also was indicted on the same six tax-related charges. The couple is accused of understating their income by approximately $1 million on tax filings for the 2004 through 2010 tax years. Much of that too-low amount was arrived at by... Read more →


We're still waiting for Donald Trump, the front-runner for the Republican presidential nomination, to release any of his personal tax returns. It's not a campaign requirement, but it is a tradition that we, the voting public and media, have come to expect. Failure, or resistance, to do so tends to make us suspect that the White House wannabe is hiding something. The Donald's excuse, recently reinforced by a letter from a pair of is attorneys, is that his personal tax filings are under Internal Revenue Service audit. When that's done, says Trump, he'll make the 1040s public. But another candidate... Read more →


Donald Trump has turned to taxes to divert attention from his restrictive, then recanted, comments on women's reproductive rights. Donald and Melania Trump in pre-presidential campaign days, heading into an Oscar de la Renta fashion show in New York City in September 2006. (Photo by Boss Tweed via Flickr) I hate to help him out, but taxes. Trump's campaign website has posted a letter from a couple of his attorneys addressing the audit of his federal tax returns. Unfortunately for the tax curious, the letter doesn't shed any light on what's in recent Trump tax returns. Instead, Sheri Dillon and... Read more →


Internal Revenue Service Commissioner John Koskinen addressed today's National Press Club luncheon. I wasn't able to get up to my former Washington, D.C., stomping grounds to hear what the commish had to say. I did, however, the next best thing. I read the transcript of Koskinen's prepared remarks and caught some of the Q&A session highlights via Twitter's #NPCLive stream. (OK, full disclosure, I did this while also periodically sneaking a peak at the muted MLB Network spring training broadcast of the Houston Astros blanking, so far, the New York Mets.) It's not surprising, given Republican presidential nominee front-runner Donald... Read more →


And once again this election season, it comes back to Donald J. Trump. Ohio Gov. John Kasich released seven years' worth of partial tax returns on Saturday, March 5, following the previously set pattern of U.S. Sens. Ted Cruz of Texas and Marco Rubio of Florida. That leaves Trump as the only remaining candidate for the 2016 Republican presidential nomination who has not made public any of his tax filings. He promises he'll let us see his taxes … eventually. This Twitter photo posted Oct. 15, 2015, is the only glimpse we've had of any of Donald Trump's tax filings.... Read more →


The calendar says it's Thursday, March 3, but unofficially it's Pile on Donald Trump Day. It began with the Republican Party's 2012 presidential nominee excoriating Trump, calling the New York real estate developer a "fraud" and "phony" whose name-based brand is built on "dishonesty." Donald Trump sporting his America-themed presidential campaign hat. "He's playing the members of the American public for suckers,” Mitt Romney said of Trump in 17-minute speech delivered at the Hinckley Institute of Politics at the University of Utah in Salt Lake City. "He gets a free ride to the White House and all we get is... Read more →


That Donald J. Trump. He apparently is special, even in the Internal Revenue Service's eyes. His tax returns have been audited a dozen or so times. They still are under IRS examination, says the Republican presidential nominee front-runner. That's why he can't let the voters see his 1040s. Click image to hear Trump explain his tax audit issues during the CNN GOP debate on Feb. 25. "I'm being audited now for two or three years, so I can't [release my returns] until the audit is finished, obviously," Trump said during CNN's Republican debate Thursday (Feb. 25) night. Really? This seems... Read more →


Uncle Sam and we taxpayers all have a lot to be thankful for this Thanksgiving. From the government's point of view, Treasury took in almost $3.25 trillion in taxes for the 2015 fiscal year that ended back on Sept. 30. And from taxpayers' perspective, that record amount or tax dollars was achieved without most of us having to endure a tax audit. Based on tax data from fiscal 2014, the Treasury Inspector General for Tax Administration (TIGTA) found that the Internal Revenue Service's examination function -- that's tax-speak for auditing of returns -- dropped by 11 percent from the fiscal... Read more →


Computers and taxes are inseparable. Most of us use our computers to file our taxes every year. The Internal Revenue Service relies on its computers, which it keeps telling Congress it needs money to upgrade, to process those millions of electronically completed and filed returns. Now some computer scientists are working on an algorithm that could help catch some tax cheats. Partnership tax shelter troubles: Specifically, researchers from the Massachusetts Institute of Technology and the nonprofit technology research and development organization Mitre Corporation, are focusing on a certain type of tax shelter used by partnerships. "We see the tax code... Read more →


The highway funding bill that President Obama signed today may be short-term (money runs out again on Oct. 29) when it comes to providing money for roads and infrastructure, but it will have some lasting tax effects. Here are some of the tax highlights from the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015. More mortgage reporting: Mortgage lenders already issue annual statements, either the official Form 1098 or an approved substitute document, to borrowers and the Internal Revenue Service. This form goes to homeowners who paid at least $600 loan interest during the tax year and... Read more →


Jeb Bush really did have 33 years of tax returns on hand and he opened them up for public inspection yesterday. When the former Florida governor announced that as part of his campaign to be the 2016 Republican presidential nominee that he was going to go to the extreme on personal tax transparency, I immediately wondered why he selected that particular number of years. I also wondered how come he had that many years of tax records on hand. I was not alone. CPA and Twitter pal Deanna Richardson also was intrigued by the massive amount of tax records. Most... Read more →


You filed your tax return. Now the Internal Revenue Service has questions about your Form 1040. While hearing from the tax collector about your return is always a little unnerving, it doesn't necessarily have to be a big deal. A notice does not mean you are under audit. Neither does it mean that your return was incorrectly filed. And in many cases, any issues the IRS has with your 1040 can be quickly resolved. Here are 10 tips to help you deal efficiently and effectively with an IRS notice or letter. 1. Don't panic. You are not alone. The IRS... Read more →