Re: IRS Audits Single Mom with 2 kids making $18,992 a year
D. Stussy
news:x8udne96YaAnNIHW...@earthlink.com...
>
http://seattletimes.nwsource.com/html/dannywestneat/2010435946_danny06.html
>
> Rachel Porcaro knows she's hardly rich. ....
And the problem is exactly what?
Statistics show that in urban areas, 25% of the population either don't
file or do and underreport their income. The IRS has the right and
responsibility to challenge such situations where the apparent "economic
reality" differs from what is reported. In some cases, it turns out that
there are non-reportable explanations (e.g. social-security benefits for a
person making less than $25k of other income), and in some cases not.
If the IRS were NOT to question such, then there'd be a problem. Economic
reality audits do happen with higher-income taxpayers also.
The "earned income credit" also has about a 30% adjustment rate - in that
30% of those who claim it are found not to be entitled to do so. It is
basically welfare, and the "republican view" that it doesn't belong in the
tax code is technically correct. According to IRS CI, it is also the
single highest area of tax fraud that is detectable during return
processing (as stated during their IRS Nationwide Tax Forum seminars from
3-5 years ago).
The fact that the IRS, after a notice of deficiency, had a tax to collect
is proof that SHE DID do something wrong. The source article doesn't say
if her case was settled or if the U.S. Tax Court ruled, but either way,
it's clear that she didn't keep adequate records of how she was able to
support her children on the income she claimed she had. At the end of the
article, it mentions she is living with her parents. Maybe they are the
ones who should be claiming the children (grandchildren to them).
D. Stussy
Arthur Kamlet
D. Stussy <rep...@newsgroups.kd6lvw.ampr.org> wrote:
>
>The "earned income credit" also has about a 30% adjustment rate - in that
>30% of those who claim it are found not to be entitled to do so. It is
>basically welfare, and the "republican view" that it doesn't belong in the
>tax code is technically correct. According to IRS CI, it is also the
>single highest area of tax fraud that is detectable during return
>processing (as stated during their IRS Nationwide Tax Forum seminars from
>3-5 years ago).
That was then.
Since then, they've invented the First Time Homebuyer tax credit.
$8,000. Refundable.
--
ArtKamlet at a o l dot c o m Columbus OH K2PZH
D. Stussy
news:x8udne96YaAnNIHW...@earthlink.com...
>
http://seattletimes.nwsource.com/html/dannywestneat/2010435946_danny06.html
>
> Rachel Porcaro knows she's hardly rich. ....
And the problem is exactly what?
Statistics show that in urban areas, 25% of the population either don't
file or do and underreport their income. The IRS has the right and
responsibility to challenge such situations where the apparent "economic
reality" differs from what is reported. In some cases, it turns out that
there are non-reportable explanations (e.g. social-security benefits for a
person making less than $25k of other income), and in some cases not.
If the IRS were NOT to question such, then there'd be a problem. Economic
reality audits do happen with higher-income taxpayers also.
The "earned income credit" also has about a 30% adjustment rate - in that
30% of those who claim it are found not to be entitled to do so. It is
basically welfare, and the "republican view" that it doesn't belong in the
tax code is technically correct. According to IRS CI, it is also the
single highest area of tax fraud that is detectable during return
processing (as stated during their IRS Nationwide Tax Forum seminars from
3-5 years ago).
D. Stussy
news:hfjtji$c2a$1...@reader1.panix.com...
And how is someone making $20k/year going to qualify to buy a home?
Arthur Kamlet
D. Stussy <rep...@newsgroups.kd6lvw.ampr.org> wrote:
>"Arthur Kamlet" <kam...@panix.com> wrote in message
>news:hfjtji$c2a$1...@reader1.panix.com...
>> In article <hfjt0k$aqu$1...@snarked.org>,
>> D. Stussy <rep...@newsgroups.kd6lvw.ampr.org> wrote:
>> >
>> >The "earned income credit" also has about a 30% adjustment rate - in
>that
>> >30% of those who claim it are found not to be entitled to do so. It is
>> >basically welfare, and the "republican view" that it doesn't belong in
>the
>> >tax code is technically correct. According to IRS CI, it is also the
>> >single highest area of tax fraud that is detectable during return
>> >processing (as stated during their IRS Nationwide Tax Forum seminars
>from
>> >3-5 years ago).
>>
>>
>> That was then.
>>
>> Since then, they've invented the First Time Homebuyer tax credit.
>>
>> $8,000. Refundable.
>
>And how is someone making $20k/year going to qualify to buy a home?
I had a client who made $17,000 for a couple of years, and was forclosed
The 1099C amount $154,000.
EIC can now be paid for AGIs of 48,000 and more. Look at the 2009 EIC Table.