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IRS Audits Single Mom Because She Is 'Too Poor'
Bluegrass Pundit ^ | Thursday, December 10, 2009 | Bluegrass Pundit

Posted on 12/10/2009 4:31:53 PM PST by Askwhy5times

A single mom in Seattle made $18,992 in the previous year cutting hair at Supercuts. The IRS audited her because they claimed she was too poor to live in Seattle. She lived with her parents and has two children. The IRS claimed she owed the government more than $16,000 in back taxes. It took two years and $10,000 in accountant bills to get the IRS to admit she was just being honest. They still won't let her claim her children because they can't determine who is really supporting them. If we could only get the IRS to be as tough on tax cheat Charlie Rangel.

(Excerpt) Read more at bluegrasspundit.com ...


TOPICS: Government; Miscellaneous; Weird Stuff
KEYWORDS: audit; irs
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This is why we need to do away with the IRS.
1 posted on 12/10/2009 4:31:55 PM PST by Askwhy5times
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To: Askwhy5times

they’re attacking someone working of course, and never someone on welfare.


2 posted on 12/10/2009 4:35:11 PM PST by MNDude (The Republican Congress Economy--1995-2007)
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To: Askwhy5times

Last time I checked (a few years ago), the probability that you will be audited approaches 50% if you claim the EITC.


3 posted on 12/10/2009 4:36:37 PM PST by 1rudeboy
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To: Askwhy5times

In a sane world, this poor woman would be allowed to use the Geithner/Rangel tax exemption and that would be the end of it.


4 posted on 12/10/2009 4:37:03 PM PST by pnh102 (Regarding liberalism, always attribute to malice what you think can be explained by stupidity. - Me)
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To: Askwhy5times

Hmmm - I wonder if she voted for McCain? Obama’s got his thugs everywhere...


5 posted on 12/10/2009 4:42:36 PM PST by BuckyKat
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To: Askwhy5times

This is new?

There are millions of “internal audits” on returns, performed by IRS “humans” every year. If they see something that they don’t like, they the audit notice goes out.

The IRS has “flags” when it sees a number that falls outside of that the IRS expects. The value of a good accountant is that they have an idea of where the flags are, and can advise you accordingly.


6 posted on 12/10/2009 4:44:24 PM PST by TWohlford
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To: TWohlford
IRS “humans”

Sorry, but I don't consider anyone who works for the IRS on the same evolutionary scale as me.
7 posted on 12/10/2009 4:48:31 PM PST by randomhero97 ("First you want to kill me, now you want to kiss me. Blow!" - Ash)
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To: 1rudeboy

uh oh.

I used that one year...like 9-10 years ago I think. I guess I’m safe now. they only go back 4 years I think.


8 posted on 12/10/2009 4:48:39 PM PST by mamelukesabre
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To: randomhero97

“Sorry, but I don’t consider anyone who works for the IRS on the same evolutionary scale as me.”

The IRS doesn’t pay well, and its accountants are not well-regarded.

However, many accountants work for the IRS when they first get their CPA certification, which looks great on a resume when you’re going for a job (or new clients).


9 posted on 12/10/2009 4:50:07 PM PST by TWohlford
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To: mamelukesabre

“they only go back 4 years I think.”

Thought it was 7 years.


10 posted on 12/10/2009 4:50:49 PM PST by TWohlford
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To: mamelukesabre

Seven years—and longer if they can establish you are running an ongoing criminal enterprise.


11 posted on 12/10/2009 4:52:10 PM PST by 1rudeboy
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To: TWohlford; mamelukesabre

7 years from last point of contact between parties.


12 posted on 12/10/2009 4:58:30 PM PST by Tainan (Cogito, ergo conservatus)
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To: TWohlford
For fear that the very small number of working poor who even have to file complex tax papers might cheat the government out of hundreds of billions of dollars, Congress through the years tightened the screws on folks claiming EITC (Earned Income Tax Credit).

Last time I looked 30% of returns with EITC were being subjected to a full audit.

That's one of the reasons Charles Rangel was able to evade taxes for so long ~ the folks who ought to have been auditing him really were nailing the hair dressers, fingernail fixers, dog groomers, janitors, part-time cabdrivers, grad students with part time jobs or small stipends, .........

The total amount of money at risk with EITC is in the few tens of billions ~

13 posted on 12/10/2009 5:02:00 PM PST by muawiyah (Git Out The Way)
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To: 1rudeboy
Or that you committed fraud.
14 posted on 12/10/2009 5:03:18 PM PST by muawiyah (Git Out The Way)
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To: Tainan

Last point of contact?

What does that mean?

If my last tax return was 1978 do they go back to 1971?


15 posted on 12/10/2009 5:08:35 PM PST by mamelukesabre
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To: TWohlford

I’ve only know one person that ever worked for the IRS. She was an extremely persnickety old lady. She was working as a secretary and boy o boy you better have every dang form filled out perfectly or she’d let you have it! Nothing got passed her. I mean NOTHING.


16 posted on 12/10/2009 5:11:49 PM PST by mamelukesabre
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To: muawiyah

What constitutes “fraud”?

A mistake on your taxes?


17 posted on 12/10/2009 5:12:43 PM PST by mamelukesabre
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To: mamelukesabre

The normal statute of limitations is 3 years from the date the return is filed. It can be 6 years if income is understated by more than 25%.

Section 6501(e)(1)(A) provides that if the taxpayer omits from gross income an amount properly includible therein that is in excess of 25 percent of the amount of gross income stated in the return, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time within 6 years after the return was filed.

http://taxprof.typepad.com/taxprof_blog/2009/09/irs-issues-.html


18 posted on 12/10/2009 6:14:55 PM PST by Raycpa
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To: mamelukesabre
Last point of contact?
What does that mean?


Pardon for the confusing terms. Last "time" of contact may be an easier reference. One must remember, the IRS never sleeps. They simply wait for your name/SS# or any other identifying flags they have assigned to your file to pop-up denoting your activity. Activity such as SS payments into your account, opening a bank account, obtaining a vehicle operators license, using your passport, etc. When they see that activity occuring, well then, the chase is on.
Also, it can be significant to remember that unless your Accountant/tax preparer/tax adviser is an attorney, duly recognized as such by the IRS, that person(s) has no legal basis for maintaining Client confidentiality in their work with you and the IRS. They will not and legally can not make this claim.
This may well be important to you livelihood and freedom.

With this in mind I will say that there are avenues of help available;but I caution against believing 90% of the "IRS Advice" you might see on internet chat forums. At the very least don't bank your future on such advice. Get professional help. Of course, you'll soon discover what a hopeless and 'criminal' scam the IRS is running and how the average citizen is simply out-gunned by the cubicle thugs operating under the flag of the IRS.
19 posted on 12/10/2009 6:18:30 PM PST by Tainan (Cogito, ergo conservatus)
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To: mamelukesabre

No a mistake is not fraud. Willfulness is required.


20 posted on 12/10/2009 6:19:15 PM PST by Raycpa
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