Surviving An IRS Audit

Surviving An IRS Audit

An IRS tax audit is requested when the tax filer submits tax information that doesn’t match with that submitted by employers, brokerage firms, banks and other institutions. This document-matching is only one means of identifying tax returns to be audited. The Discriminant Function System (DIF) is a point system the IRS gives each return rating it on its possibility of containing fraudulent information. Informants are still a popular means to detecting who has filed a fraudulent tax return and finally, self-employed persons and persons earning $200,000-1 million are often pursued when their returns appear suspicious.

Any of these circumstances could trigger an IRS audit. IRS Publication 17 is a guide for the individual tax payer that could help them stay off the IRS suspect list. The publication goes over the basics of filing a return. It covers every type of income, adjustments to income, profit gains and losses and deductions. It evaluates deductions and taxes and tax credits. Lastly, it provides a tax table and tax computation worksheet.

By following the IRS Publication 17 closely, the likelihood that you would encounter problems with your taxes dwindles significantly. An audit may still occur if mistakes are made or if you persist in being less than honest about your income. Keep in mind, that anything that can be verified will be verified.

If you are confronted with an IRS audit, the first step you should take is to contact your tax preparer, a good tax lawyer and review your returns before the actual audit. Avoid the IRS discovering improprieties in your returns. Point them out before they are brought to your attention and make compromises where ever possible to mitigate your cost.

IRS Publication 17

IRS Publication 17 For 2013

If you want to do your own taxes, you need to understand the process. Fortunately, you do not need a degree in accounting to figure out how to do your own taxes. The best chance that you have to get through your taxes without making a mistake is to consult the document put out by the IRS for that purpose. IRS Publication 17 is a great guide for those working on their own taxes.

IRS Building
IRS Building (Photo credit: afagen)

IRS Publication 17 is still the most useful IRS publication for figuring out exactly how your income taxes work. The document breaks down the process of preparing your taxes into fairly easy steps, a real necessity for those who still prepare taxes by hand. The document is still useful for those who prepare online, though, as it does contain some basic information that most of the online services glass over. IRS publication 17 is easily the most valuable document that you can use if you are working on preparing your own taxes, and it is fortunately also a free document.

Pub 17 2013 can currently be found on the IRS’s website at . This document is likely to be updated when tax season gets a bit closer at hand, and revisions are likely if issues occur that changes the tax landscape. Remember that Pub 17 2013 is only a guide, and that more definitive information likely needs to come from a tax professional. If you are comfortable working on your own, though, this guide is your best tool.

TaxCaster: The Mobile Tax Calculator For Taxpayers

TaxCaster: The Mobile Tax Calculator For Taxpayers

Tax calculators are popular tools for consumers these days. Before filing one’s taxes, a person can take advantage of a calculator. Such tools require some personal and financial information in order to generate a tax refund estimation. An individual will know in moments whether they owe money or will be receiving money from the Internal Revenue Service. With that in mind, TaxCaster from TurboTax is the best option available.

The national debt clock outside the IRS office...
The national debt clock outside the IRS office in NYC. (Photo credit: Wikipedia)

Currently, TaxCaster is available for iOS and Android devices. A smartphone user can download this app in minutes and start using it right away. The app asks for basic information upon the first use and subsequent uses. Such information is necessary to figure out a person’s tax situation. After a user enters their annual income information, the app will return a rough estimate of their tax refund or dues.

There are plenty of other tax calculator options on the market. Unfortunately, most of them don’t provide accurate responses for taxpayers. TaxCaster is known for its accuracy and simplicity. Other programs, especially mobile apps, don’t really stack up to TaxCaster right now. The average tax calculator asks for a lot of extra, unnecessary personal information, too. No taxpayer should be forced to divulge such information.

TaxCaster offers plenty of benefits over the competition. As a tax calculator, it requires only moments to receive a refund estimate. Customers will immediately know whether they owe money to the IRS, too. In the end, a tax calculator like TaxCaster is a fantastic option for most taxpayers. Anyone with a mobile phone or Internet access can utilize this app with ease.

Tax Carnival Ecstasy – March 28, 2013

Tax Carnival Ecstasy – March 28, 2013

Welcome to the March 28, 2013 edition of Tax Carnival Ecstasy. In this edition we start out with an article from Bill  Smith on the recent fight between H&R Block and TurboTax over the advertisements that Intuit has been running about part-time tax preparers. We also have a great article John Schmoll from Frugal Rules on why financial adviser compensation is an issue when selecting a professional to invest your money. Hope that you like all the articles, share on Facebook, tweet, bookmark, and come back real quickly.

Tax time
Tax time (Photo credit: slworking2)

filing

Bill Smith presents Turbo Tax Television Ads Will Continue posted at 2011 Tax, saying, “H&R Block has failed its lawsuit and injunction attempts two times against Intuit’s TurboTax.”

Bill Smith presents An Overview Of The Turbo Tax Military Edition posted at 2011 Taxes, saying, “Preparing and filing your taxes on time and to your best advantage may be difficult at any point in your life, but being in the military may pose additional challenges.”

retirement

John Schmoll presents Financial Advisor Compensation – Why it Matters posted at Frugal Rules, saying, “A financial advisor can be a great way to help you grow your portfolio when you have long term goals in mind. Make sure you do your homework and hire one that you feel right about and best fits your needs and goals.”

taxes

Bill Smith presents Innovations For Turbo Tax 2013 posted at 2013 Taxes, saying, “Professional accounting can help business owners save time and resources, and the Turbo Tax 2013 CPA Select edition by Intuit may be the ideal solution for tax filing season.”

Bill Smith presents Tips For Maximizing Your Return posted at 2009 Tax, saying, “When you use free Turbo Tax 2013follow, it is important to make sure that you maximize your return.”

Bill Smith presents Easy Online Tax Filing With Free Turbo Tax 2013 Software posted at 2009 Taxes, saying, “Having expert tax assistance can be the best way to avoid financial penalties, complete your filing on time, and maximize your refund.”

Bill Smith presents TurboTax Helps Users Get More Accurate Tax Returns posted at 2010 Tax, saying, “Each year, Americans are forced to go through last year’s financial information and prepare a tax return.”

Bill Smith presents The Benefits Of Using TurboTax 2013 To File Your Taxes posted at 2012 Taxes – Free Tax Filing Options, saying, “If you have never used Turbo Tax before, you need to consider filing your taxes with this computer program this year.”

That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

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Tips to Get TurboTax Discounts

Tips to Get TurboTax Discounts

Turbotax software comes in various different versions like Premier, Deluxe, etc. Turbo tax software is used to prepare both State & Federal Income Tax Returns. One of the best things about the software is that it is regularly updated once the IRS completes any revisions to the tax forms. This software is widely used because of its user-friendly interface and its step by step assistance to the tax payers.

Most of the people today are using Turbo tax so that they can prepare their taxes on their own. It’s very popular because it allows payers to easily enter the required information and calculate the amount of the tax that you are required to pay. Turbo tax also helps in reporting the investments in bonds and stocks. It also helps in setting up the information about properties like rental properties or any other. It helps in maximizing your deductions as it helps in determining what items can be used for deductions.

To get Turbo tax discounts, you will have to buy it at a website that offers a discount. The website must also offer various versions of Turbo tax so that you can choose the best one for you. Simply getting one version on the website won’t be useful for you. The site must offer return shipping as well. To such sites that will offer discounts you need to search them online, type in the keyword phrase in the search engine and look for different websites that sell Turbo tax at a discount and select the website where you can buy turbo tax.

Getting Turbo tax discounts takes efforts as well as time. Searching for Turbo tax discounts can be daunting task but once you get it filing tax return becomes much easier and faster.