Anyone been audited by the IRS?
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From: Cypress
Anyone been audited by the IRS?
I went online to check my refund status of my tax return. We filed an extension because we were building our house and wanted to take the $8,000 tax credit this year. I've checked it in the past and it said we were supposed to be getting our refund back by August 4th.
Tonight I checked it and this is what I found:
Am I getting audited? I use a CPA and the numbers are right as far as I know. I keep thinking that maybe they just need documentation of our marriage to show my wife's name change? Or maybe further documentation on the house? I'm sweating bullets right now though, and our CPA is closed on Fridays!!!!
Tonight I checked it and this is what I found:
Refund Status Results
We have received your tax return and it is being reviewed. You will receive a notice from us requesting additional information from you. When you receive the notice, please provide the requested information within 30 days. You may not receive all or a part of your refund until we receive and review the information we requested from you. If you need more information after you receive our notice, call the number on the notice.
Please read the following information related to your tax situation:
* Tax Topic 151, Your Appeal Rights
We have received your tax return and it is being reviewed. You will receive a notice from us requesting additional information from you. When you receive the notice, please provide the requested information within 30 days. You may not receive all or a part of your refund until we receive and review the information we requested from you. If you need more information after you receive our notice, call the number on the notice.
Please read the following information related to your tax situation:
* Tax Topic 151, Your Appeal Rights
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No, not necessarily getting audited. They just have a question about your return. Some of the info, or how it was filed. Depending on the answer, it could develop into an audit.
I'm confused on your staement about the house credit. Getting an extension does not allow you to use a law that applies at a later date. You still must file as it applies to returns for year 2008. I'm sure I'm misunderstanding as your CPA would know that.
I'm confused on your staement about the house credit. Getting an extension does not allow you to use a law that applies at a later date. You still must file as it applies to returns for year 2008. I'm sure I'm misunderstanding as your CPA would know that.
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No, not necessarily getting audited. They just have a question about your return. Some of the info, or how it was filed. Depending on the answer, it could develop into an audit.
I'm confused on your staement about the house credit. Getting an extension does not allow you to use a law that applies at a later date. You still must file as it applies to returns for year 2008. I'm sure I'm misunderstanding as your CPA would know that.
I'm confused on your staement about the house credit. Getting an extension does not allow you to use a law that applies at a later date. You still must file as it applies to returns for year 2008. I'm sure I'm misunderstanding as your CPA would know that.
If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.
Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.
Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.
Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.
Someone said it's probably that credit that they want more information on.
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There is a stipulation in the first time home buyers credit that allows you to treat a house purchased in 2009 as if it was purchased on December 31, 2008.
We owed money so I did a little research and had the CPA file an extension until the house was finished so we wouldn't owe.
Someone said it's probably that credit that they want more information on.
We owed money so I did a little research and had the CPA file an extension until the house was finished so we wouldn't owe.
Someone said it's probably that credit that they want more information on.
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There is a stipulation in the first time home buyers credit that allows you to treat a house purchased in 2009 as if it was purchased on December 31, 2008.
We owed money so I did a little research and had the CPA file an extension until the house was finished so we wouldn't owe.
Someone said it's probably that credit that they want more information on.
We owed money so I did a little research and had the CPA file an extension until the house was finished so we wouldn't owe.
Someone said it's probably that credit that they want more information on.
Just what I saw in the news on it. I would bet they are going to want some info and maybe proof of the purchase. That is the kind of thing that could easily get abused. Even if they turn it into an audit, if you've reported everything, should be no worry. If you haven't, would just mean you owe additional tax. That is, unless you have been fraudulent. For the normal tax payer, there is nothing to fear from an audit, they're just a necessary nuisance.
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Fixed. What the government/IRS does, is by no means necessary. Tax has been bred into society, though, for so long that nobody thinks to challenge it. Government goes around counterfeiting money, through the federal reserve, and stealing your hard earned cash, through the IRS. The only people who should believe that it is necessary, are those people who are receiving cash from the government and not doing anything to earn it.
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Fixed. What the government/IRS does, is by no means necessary. Tax has been bred into society, though, for so long that nobody thinks to challenge it. Government goes around counterfeiting money, through the federal reserve, and stealing your hard earned cash, through the IRS. The only people who should believe that it is necessary, are those people who are receiving cash from the government and not doing anything to earn it.
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From: Cypress
I did not know that stipulation was there. Probably because I have not yet read the rule. Just what I saw in the news on it. I would bet they are going to want some info and maybe proof of the purchase. That is the kind of thing that could easily get abused. Even if they turn it into an audit, if you've reported everything, should be no worry. If you haven't, would just mean you owe additional tax. That is, unless you have been fraudulent. For the normal tax payer, there is nothing to fear from an audit, they're just a necessary nuisance.
Just what I saw in the news on it. I would bet they are going to want some info and maybe proof of the purchase. That is the kind of thing that could easily get abused. Even if they turn it into an audit, if you've reported everything, should be no worry. If you haven't, would just mean you owe additional tax. That is, unless you have been fraudulent. For the normal tax payer, there is nothing to fear from an audit, they're just a necessary nuisance.
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You hit the nail on the head. I called the IRS office and spoke with a gentleman and he said it was due to the home credit. We sent in our closing settlement statement but maybe they need more documentation (ie. deed etc..)? He said since they have started that there have been 12 year old kids buying houses and people with an AGI of $1,000 buying houses...so there's a lot of fraud going on which has caused the system a major back up. It's a damn shame we live in a society where people do stuff like that!
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Heard that many times before, but it's still there and we still need to comply if we want to stay out of jail. I don't mind paying income tax. Wish my tax was 10 times what it is. That would mean my income is 10 times as much. I had much rather pay income tax rather than all the hidden taxes we pay.
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OP - I agree the delay is due to the home purchase credit.
Sounds like you opted for an extension. I've heard of others in this situation, and what they did was filed their original return on time (paying any taxes due), then filing an amendment to the return and waiting for the refund.
I wonder if the IRS would have preferred you do it that way, and since you opted for an extension, you are getting a little worse treatment than if you had filed and then amended.
Not surprising to me the IRS is very slow in paying these refunds. Good luck on getting yours soon!
Sounds like you opted for an extension. I've heard of others in this situation, and what they did was filed their original return on time (paying any taxes due), then filing an amendment to the return and waiting for the refund.
I wonder if the IRS would have preferred you do it that way, and since you opted for an extension, you are getting a little worse treatment than if you had filed and then amended.
Not surprising to me the IRS is very slow in paying these refunds. Good luck on getting yours soon!