Friday, January 15, 2010
Pro Se Nurse Wins Against the IRS
A nurse represented herself and won her case against the IRS. The Tax Court in Singleton-Clarke v. Commissioner, T.C. Summary Opinion 2009-182 found that the nurse's advanced degree did not qualify her for a new trade or business, and held that she could deduct her education expenses for 2005.
Top Ten Common mistakes for 1040X
• Schedule A missing when change to itemized deductions. Correspondence is then necessary.
• No original signature (copy). Correspondence is then necessary.
• Schedule C not included when amending schedule C or it does not indicate which Taxpayer it is for when the return is Married Filing Jointly (MFJ). Correspondence is then necessary.
• Schedule EIC is not attached when EIC is amended. Correspondence is then necessary.
• TP does not indicate exemptions name and SSN/ITIN number in exemption section when adding or removing and exemption. Correspondence is then necessary.
• Taxpayer requests direct deposit of their amended refund or adds direct deposit information for their original refund, since direct deposit information cannot be added on an amended return, we must correspond.
• Form 5405 not attached when claiming the First-Time Homebuyer Credit.
• Signature is other then the taxpayer and no supporting documentation is attached or indicated. (i.e. Form 2848, Durable POA, parent for minor, etc)
• Missing schedules and/or forms for Line 7 credits. Correspondence is then necessary.
Other common mistakes:
• Taxpayer files Head of Household (HOH) with no exemptions and does not indicate Qualifying dependents (QND) name and/or SSN.
• Taxpayer removes an exemption but not Recovery Rebate Credit (RRC). This requires additional correspondence.
• TP does not indicate if a child is eligible for Child Tax Credit (CTC) but takes the credit or the reverse.
• No original signature (copy). Correspondence is then necessary.
• Schedule C not included when amending schedule C or it does not indicate which Taxpayer it is for when the return is Married Filing Jointly (MFJ). Correspondence is then necessary.
• Schedule EIC is not attached when EIC is amended. Correspondence is then necessary.
• TP does not indicate exemptions name and SSN/ITIN number in exemption section when adding or removing and exemption. Correspondence is then necessary.
• Taxpayer requests direct deposit of their amended refund or adds direct deposit information for their original refund, since direct deposit information cannot be added on an amended return, we must correspond.
• Form 5405 not attached when claiming the First-Time Homebuyer Credit.
• Signature is other then the taxpayer and no supporting documentation is attached or indicated. (i.e. Form 2848, Durable POA, parent for minor, etc)
• Missing schedules and/or forms for Line 7 credits. Correspondence is then necessary.
Other common mistakes:
• Taxpayer files Head of Household (HOH) with no exemptions and does not indicate Qualifying dependents (QND) name and/or SSN.
• Taxpayer removes an exemption but not Recovery Rebate Credit (RRC). This requires additional correspondence.
• TP does not indicate if a child is eligible for Child Tax Credit (CTC) but takes the credit or the reverse.
Wednesday, January 13, 2010
IRS Telephone Directory for Practitioners
See this link for an IRS telephone directory for practitioners that list numbers for all states.
Sunday, January 10, 2010
First Wednesday Tax Forum
The next First Wednesday Tax Forum will actually be held on the second Wednesday, January 13, 2010. Special Agents Todd Norwood and Elisa Rodriguez of IRS Criminal Investigation will be speaking on Refund Fraud and Fraud Detection. This will be an interesting and informative presentation. As tax season arrives, learn what you need to know to protect yourself and your clients.
Requisite Knowledge and Experience: None is needed
Advance Preparation: None is needed.
This is an update presentation.
The presentation is lecture style.
The First Wednesday Tax Forum will meet from 7:30-9:10 AM at the University of Phoenix, Dallas/Ft. Worth Campus. The University of Phoenix Campus is located in Churchill Tower, 12400 Coit Road, Dallas, Texas. Park in the parking garage behind the building. Come to the front of the building on the first floor. Registration is $15 per course. CPAs and enrolled agents receive 2 hours of CPE credit. If you plan to attend, please send an e-mail to dawn@tjtaxlaw.com. Make checks payable to Townsend & Jones, L.L.P., and mail to 8100 Lomo Alto, Suite 238, Dallas, Texas 75225. Phone 214-696-2661.
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