"Your tax refund will be delayed because we may examine your tax return relating to the following issue(s). Filing Staus Earned Income Credit Dependent(s) We will send a letter within 30 days if we are going to examine your return before we issue your refund. In the letter we will provide you the name, addrees and number of the tax technician assigned to your case. If we are not going to examine your return, you will recieve notification from us within 8 weeks concerning the status of your refund." Filing status? That is Head of Household, right? Or does that have to do with my self employment job title? I took the earned income credit for myself and child which I deserve. I have and claim one child. I am, was, SINGLE, very single. No one lives with me besides my child, supports me or anything remotely like that. What will they want from me? Any advice?
I am an Enrolled Agent and deal with this issue every day. The IRS has a longstanding attack on what it calls "Earned Income Tax Credit Fraud", which means they periodically withhold the tax benefits of (a) Head of Household status, (b) The child's dependent exemption and (c) any EITC claimed as a result of a and b until you satisfy them that you are entitled to the EITC. Tehy will be sending you a checklist of documents they will want. Basically, you will have to prove that the child exists, lives with you, taht you provided over half of its support. The IRS office in Bensalem PA, which is the offuce that does this type of audit, tends to be very anal and hard to deal with. Of course, if you would rather not fight them you can always change your return to Single filing status, no dependents and no EITC and the IRs will release what's left of your refund immediately. Sometimes I wish the IRS would launch audits and attacks on millionarires with the same zeal and tenacity that they audit the working poor. But, the rich have high priced accountants and EA's to represent them.
flyingifr, I am a lover not a fighter. LOL I know,,, I have to change. I want to be more like you. ;-) Besides, the tax credit is the one good thing about raising a child on my own. I am keeping her! I can stand on my truth, I have completely solely supported this child from the beginning, including the responsiblity of educating her and am no doubt in the poor house because of my past choices. Any chance on getting a glimpse of that checklist on the internet somewhere? Why put off what I can do today? Glad I spent the past weeks organizing my files for credit repairing. I do feel sort of ready for anything now I have created my Bruce Almighty file system. Yeah, you can say that again. I can't wait to show off how poor I have been. *sarcastic grimace* Thanks for your help, much relieved.
Been there done that They will ask for copies of yours and your child's social security, a recent utility bill and a copy of school records if your child is enrolled in school, I "think" they might also want copy of birth certificate? They take their good old time reviewing these of course
Momof3, All checked! Yea! For the school records, I have the signed yearly exemption forms from the NV school board district in order to homeschool legally. There was a time things were so bad I was not even checking my mail for months at a time. Glad CreditNetters gave me the strength to confront my past. And ever so grateful for the support of people that have been there, done that. Thank you. Lil' Balance Tip: It sure helps me to order for free samples and freebies at Fatwallet.com. Makes going to the mailbox so less dreadful. Along with my tax audit letter I received a tee shirt, face lotion and two new magazines to add to my day. LOL Thanks again,
Gretchen, It might not be all that bad or take that long. Mine was held for about 6 wks. I guess they found old paperwork or something because the IRS never even requested it.
Re: Re: UH oh,,,Am I being "audited"? "IF" they are ANAL...SEND A PICTURE OF THE KID WITH HIS/HER PANTS DOWN "MOONING" THE CAMERA... "IF" you DESERVE (QUALIFY) for the EITC...FIGHT IT!!! DON'T BACK OFF!!!!!!!!!
Re: Re: UH oh,,,Am I being "audited"? Melissap1, Yes, the letter did sound a bit like a maybe not a sure thing. Flyingifr has seen these kind of letters before though. If it turns out to be just the checklist I should do fine. George, FIGHT! That's easy for an audacious, all capitals type of guy to say. I imagine you are as big and tall as your letters. Thanks for the hearty laughs and support. I will do my best.
Audits strike fear into the hearts and minds of everyone. They rely on that to scare everyone into submission, much like collection agencies. Hell they ARE a collection agency. lol The issues they raise are the only ones they may look into. You may refuse to appear at their "suggested" place to have yourself "examined", by stating "I'd be delighted to send proof of my return via photo copies but have no interest in appearing [to be raped] before your "examiner". Did you deduct some money for a home office? This frequently results in an audit scare. Don't worry Gretchen, we'll get ya through it. Just sit tight until your next big announcement, which will almost certainly say, "never mind". Just make sure you get your interest for them sitting on your refund. lol .
Re: Re: UH oh,,,Am I being "audited"? Butch is showing off how little he knows about this type of audit. This type of audit is ALWAYS a correspondance audit - they send you a form to fill out, answer some question and provide documentary proof. The audit is conducted out of bensalem PA IRS office.
Re: Re: Re: UH oh,,,Am I being "audited"? What, you wanna start too? God these guy's are really coming outta the wood work. Must be the full moon. LOL
Re: Re: Re: UH oh,,,Am I being "audited"? Hiya Gretchen... Sorry you've been pinched on the butt by IRS... everyone is right about the anal-ness of IRS and EIC's. My ex claimed our son on his return...I sent mine in after he filed, along with a letter explaining that I was entitled to claim, not him, a copy of the court order, etc., and proof that I paid over 50% of his expenses. Even though ex had already received his EIC/tax refund, I received what I was entitled to. I never received the letter you did, but I do know that with any claiming of self employment, the EIC amounts change. Good luck...we WILL get you through this. Keep us posted!
Re: Re: Re: Re: UH oh,,,Am I being "audited"? Don't even start with me in this area - it's my business, I do it professionally every day and I'm damned good at it.
Re: Re: Re: Re: UH oh,,,Am I being "audited"? The IRS answers to NOBODY...that is what people are afraid of!!!
Re: Re: Re: Re: Re: UH oh,,,Am I being "audited"? I have no problem with that flying. I'm sure you are. Just wondering why the attitude. Or should I begin all my corrections to you with "Flying is showing off how little he knows about credit correction", (a topic which I guaranDAMNtee you I know a great deal more than you do) I'm a professional too, with a big degree even. I don't treat people like sh1t who know less about my profession than I do. What's your excuse? .
Re: Re: Re: Re: Re: UH oh,,,Am I being "audited"? Flyingifr has good "attitude". Did you check his "pitch". BTW, what does having a "big degree" have with intelligence. I know a lot of educated people that can't turn on a computer. I am pretty sure Flyingifr is very smart. Check out the "IFR" in his handle. Flyingifr. Check out http://www.aerowinx.com. A very good IFR simulator for the Queen.
Re: Re: Re: Re: Re: UH oh,,,Am I being "audited"? Flyingifr, Yes, but this is my thread. As much as I appreciate your position for good advice, I did ask for "any advise?". If you could specifically point out the items of what Butch said that was incorrect that would be most helpful. If it was solely regarding how correspondence is going to be done, Butch's advice may come in handy for possibly future audits. Without everyone's comments, I seriously would have been deeply concerned that I had no choice. And they would be coming to my home, and scaring my child. These things do happen. Whoever said all you have to fear is fear itself was dead wrong. 81 FBI agents each loaded with machine guns raided my workplace with an 11 hour closed camera search this year. It was horrifying. They found nothing after busting into my workplace which I have always considered safer than my home. Butch, Hey, I am the one with the problems here. ;-) LOL It is in the realm of possibility that you offended Flyingifr first by suggesting that he was just another CA. We all have a job to do. Although I think we are all under the delusion that we are doing a good job. What is good? There may be many in this room that probably think that I am not doing a good job. I have noticed "good" Collection Agents feel it is there duty, their job to judge, stop, enforce and oppress those who wish to correct their mistakes before the seven years. "You have to earn your good credit" and that is why he is not accepting payment for deletion of TL. Four2nik, Funny, I do not care who is right or wrong. Honestly, my heart really tugged by each response. The men can scream, shout, bang on their chests, just as long as no one leaves me alone with the government!!! LOL *my bad* My guess is the IRS threw up a red flag because I filed for refund on my 2002 and 2001 taxes within two weeks of each other in June 2003. George, You are a rock of stability. The only thing that seems to shake you up is the Random FICO numbers. Gotta love that about you. I on the other hand seem to worry about everything. Just yesterday, I was seriously worried I was going to get struck by lightning. I do not know what is wrong with me. When Years ago, I never thought twice about dancing or flying a kite in the rain. So walking under the trees is better than walking out in the open, right? LOL mh757, I believe it is the art and skill of communicating that matters. I think the "big degree" had to do with a different point Butch was making about communication. Cool software... I am going to try and think of something else for a while. Like pina coladas and getting caught in the rain...
Re: Re: Re: Re: Re: Re: UH oh,,,Am I being "audited"? No need Gretchen. I'm sure Flying is exactly right. In the old days the IRS wouldn't hesitate to request a face to face interview with the tax payer. Today, in their haste to save money, if you did get audited, I'm sure it would be a correspondence deal. They send you a letter and you send back a few photo copies and that's it. The IRS may be moving toward having everyone prove they're entitled to EIC to be submitted along with their return. The LAST thing I'd do is worry. That was my point. lol
Re: Re: Re: Re: Re: Re: UH oh,,,Am I being "audited"? Dear Taxpayer, You are a dead man. I think I have a handle on the proof for Head of Household changes they made and proof for the EIC, changes they made on my return. It is ready to send but am not prepared for this: Form 886-A Explanation of Items: Primary Sch C Net Income Per Return:$XX,XXX.XX Per exam:$0.00 Per Adjustment$XX.XXX.XX) Because we determined that the activity described on your Schedule C does not meet the guidelines of carrying on a trade or business within the meaning of Revenue Code Section 162, we removed your net profit and adjusted your self-employment tax to zero. I do not understand the above at all. How can they determine and why would they take away my self empoyment tax?????????? It also was sent along with a Form 11652 Questionaire form 1040 Schedule C (profit or loss from Business) Lists ten questions. Asking about if I received 1099 MISC for income reported? I reported all my gross income. Am I a service or sales? Okay that one is easy. Service. What type of work was I doing to earn this income. THey know I am an entertainer why are they asking me AGAIN? And WHAT income are they referring too? My gross income or the Form 1099 MISC that they suggest I use to report extra income. Or, the one that I sent in along with my return? The questionaire also asks me to send them the names and addresses of the people that paid me! I am thinking this is in relation to the 1099 MISC I sent them with the dividends but I could be wrong. At the bottom it asks, Do you have any non-taxable source (s) of income? Is so, list the sources and the amounts. Is this where I put the sale of my house money that I had? :-O This is going to screw me up for next year filing, right? *sigh* At this point, with no penalties listed what happens if I want to give up on the refund and not send back proof? I am concerned how will this effect me next year when I file the same way I always have. I feared the Schedule C audit. I send this questionaire back and then they say inadaquate and give me worse heck? Time to pay for a tax accountant is what I think. :-/
Re: Re: Re: Re: Re: Re: Re: UH oh,,,Am I being "audited"? Actually, the IRS is launching a pilot program this year requiring 25,000 people who claimed the EITC last year to prove they are entitled to it for 2003 in advance. It's called "Precertification" an dit only examines one of the 4 tests for EITC. I can just hear the cryingnext year: "but I got this leter saying I qualified for the EITC, why would teh IRS disallow it?" "They gave that letter only on the "member of household test" Youy met that, ut you didn't meet any of the OTHER 3 tests, so you can't get EITC". "Then why did I go through all taht paperwork to precertify?" "?????"
