Preparation can save money on an IRS visit
Ohio businessman James Triplett was fined for a false return then penalized again for trying to deduct the fine. With April 15 near, IRS audits have fallen, while random audits rise. A government poll shows tax cheating accepted by 24 percent. IRS plans to audit 50,000 returns to improve future targeting. An audit prep file is advised, including documentation for deductions, medical expenses, and charitable contributions.
MENTIONED IN THIS ARTICLE
James Triplett
Internal Revenue Service
Ohio
IRS
U.S
Triplett
Charles Rossetti
Rossetti
Jim Southward
Southward
California Society of Enrolled Agents
Sacramento
Itsdeductible.com
Tips to avoid triggers for IRS audits and deductions
Guidance on not triggering audits through accurate reporting. Highlights include correct Social Security numbers and TINs, reporting on W-2 and 1099 forms, keeping corrected statements, avoiding past-due deductions, ensuring charity receipts for gifts, five-year record retention, and proper valuation of charitable and used items. Also notes higher audit risk for small business owners and self employed taxpayers at 1.55 percent.
MENTIONED IN THIS ARTICLE
Paul Gada
CCH Inc
Chicago
IRS
Tax time clarifications on rebates and IRA rules
Expert refutes that last summer’s rebate is a loan and confirms it is not taxable income and does not reduce refunds. It notes next year’s higher refunds, possible rate reductions, and a new 10 percent bracket. Also covers filing options for missing forms and traditional IRA eligibility and deduction rules for 2001.
MENTIONED IN THIS ARTICLE
Sam Serio
Internal Revenue Service
Congress
Reader asks about medical expenses and pretax premiums
A reader queries deducting company paid medical premiums in tax returns. Pretax amounts are not deductible unless they appear in Box 1 of Form W-2. If W-2 shows premiums paid through payroll deductions, they are deductible. The discussion notes that medical expenses must exceed 7.5 percent of adjusted gross income.
MENTIONED IN THIS ARTICLE
Serio
Ways to dodge costly ATM surcharges card advice
Advice on avoiding ATM fees by using your bank's ATMs or using cash back at supermarkets and mini stores. Encourages checking if your bank belongs to surcharge networks and planning withdrawals to reduce trips.
Web cost-of-living calculators for job relocations
Chuck Myers notes several online tools to estimate required income when moving to a new city. Bankrate, Best Places, CityRating, Homestore, and MonsterMoving offer calculators comparing costs of living, income needed, CPI dates, and relocation planning.
MENTIONED IN THIS ARTICLE
Bankrate.com
Bestplaces
Homestore.com
Homefair.com
Homefair
Monstermoving.com
Also Mentioned on This Page
Mary Deibel Scripps
Howard News Service
Social Security Administration
the Color of Money
Michelle Singletary
Singletarym
Washpost
By Chuck Myers
Knight Ridder Newspapers
CityRating.com
Dilbert
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