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Recent IRS Audit questions

2014 Tax question. I am a US citizen working as an

2014 Tax question. I am a US citizen working as an expatriate. I also had a LLC I was running and had a great deal of business expenses.My Question is, how can I avoid overpaying taxes?What can I write off, how can I recoup some of the taxes I have paid?

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Mark Taylor

Certified Public Accountant

Masters

1,250 satisfied customers
I need help with the foriegn income exclusion, Ok well

HiJA: Hello. How can we be of help?Customer: I need help with the foriegn income exclusionJA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: Ok well mailed out my taxea for 2013. I live in australia i a us citizen. I used the bonifide resident test. I only made about 20k. I just wanted to go over with an account if i used the right test. If i did not and i mailed the retuen already can i use the physical presence teat and mail an amended return for 2013 wven though i juat mailed a late one for 2013.JA: Is there anything else the Accountant should be aware of?Customer: Yea for all of 2013 i was in australia leas ten days in vietnam. Australia was my taz home i paid income taxes. I had permenant employment in australia but got let go dfuqrring 2013 and for new permenant employment in australia.

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Mark Taylor

Certified Public Accountant

Masters

1,250 satisfied customers
Using IRS Form 6198 and K-1 losses - Is using Form 6198 to

Using IRS Form 6198 and K-1 losses - Is using Form 6198 to report zero basis this year using the simplified method likely to raise questions from the IRS about a loss last year?

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Dr. Fiona Chen

President

Ph.D.

552 satisfied customers
Dr: Thanks for your great help. Have do have another

Dr Chen: Thanks for your great help.Have do have another questions.At one time I had several business entities. A couple of LLC were formed in 1998 and dissolved in 2004. Final returns were filed the following year.Question: can I get rid of (shred) all their records including the returns?We are downsizing considerably and I need the space.

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Dr. Fiona Chen

President

Ph.D.

552 satisfied customers
I half own an S Corp that my annual W-2 is over $200k and my

I half own an S Corp that my annual W-2 is over $200k and my half of the company profits range around another $100k or so that goes on my tax return. Been a W-2 employee there since 1990 and have a good book keeper and accountant. This job also provides a company car and my health insurance.I have several rental houses in my personal meme that produced income.In addition, on the side I dabble with flipping houses. Since I'm short on time about 1/4 or so of the 5 or 6 houses a year that I sell a year I hold for over a year. No rents. They just sit. Busy.I have always reported the sales on Schefule D except for in 2013 I included two sales on C and 2015 I included two on C. The reason at the time I reported those on C was that they were the only houses I carried in my LLC. The others were in my personal name. Income from the sales are around $100k a year.This year my pay from my normal job will remain the same as well as the company profits rolled to me. Sales of the houses, 2 being held for over a year with one rented for six months to the eventual buyers come Dec.What I want to do is just report all from here on out on Schedule D. I have a full time well paying job outside of real estate. I also am contemplating amending those two other returns to switch the sales from C to D. Do you think this would throw up red flags?

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,018 satisfied customers
Request Dr. Fiona to answer this question.. The insurance

Request Dr. Fiona Chen to answer this question. . The insurance company reimbursed me for the limit of my policy on my contents. And my real loss substantialy exceeds the insurance reimbursement. Even with that there is roughly 30% discrpency in what the insurance allows for lost items and what public adjuster estimated in my case. I did not fight the insurance on that - as I was over the policy limit. Some other lost items such as paintings were not even part of the coverage, but were aknowleded by insurance as legitamate loss ( and I need to get separatly prepared appraisal for those items). Whom does IRS beleives in this situation -- my public adjuster estimate , my other I hired appraisair OR the insurance adjuster? I forsee this to be the biggest issue during the IRS audit. I am stil lnot clear on how to fill out the 4684 -- should I just lump everything into one number on this form (from my NOTsubmitted Excel spreadsheet) -- and tell IRS to use the provided to them estimates from the insurance company and the public adjuster and independent appraiser if they want to see how the numbers are substantited? How often does IRS calls my public adjuster or my other appraisar "on the carpet" if there is an audit (as I suspect there would be one as my loss exceeds limit of my policy by 200k)

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Dr. Fiona Chen

President

Ph.D.

552 satisfied customers
I recently made an LLC.I am the owner and the only one

I recently made an LLC.I am the owner and the only one working right now.I have a person that will join me as a 1099 soon.My question is,Should my company be an LLC taxed as an S -Corp or a C-corp?Later on my wife will join us also,when needed.

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Dr. Fiona Chen

President

Ph.D.

552 satisfied customers
I have an Etsy shop and my own website. I got 1099's for

I have an Etsy shop and my own website. I got 1099's for both which didn't include paypal. I didn't make enough through paypal for them to 1099 me. I still have to add up those sales and include them in my income, correct? How would the IRS know if you didn't declare that income without a 1099?

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Dr. Fiona Chen

President

Ph.D.

552 satisfied customers
I own a chapter s corp, I received a notice from the IRs for

I own a chapter s corp , I received a notice from the IRs for year 2012 with tax due, CP171 . It is impossible that tax is due this is a chapter s I looked at the return , there is no money due because it is a pass thru, I prefer not to deal with the IRS always worried about an IRS audit, should I fight this or just surrender and pay , If I correspond by mail what should I send them , they must already have the return?

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Barbara

Enrolled Agent, Paralegal

5,140 satisfied customers
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