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Posted by Harlan Lunsford on February 21, 2008, 5:23 pm
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Spirit wrote:
> I was unemployed in 2007 but do have interest and dividend income.
> Should I send in a tax form with that info even though it is so low I
> would not owe taxes. I thought this might be best in case they wondered
> why I didn't file anything. Thanks
>
You're probably asking the question re the stimulus bill recently passed
that provides for "rebates" for even those not required to file. An
easy $300, right?
Well, I'm sorry to say that this kind of income is not "qualified
income" and therefore won't do a thing to help you get the free money.
ChEAr$,
Harlan Lunsford, EA n LA
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Posted by Tony Cox on February 22, 2008, 12:06 pm
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> Spirit wrote:
> > I was unemployed in 2007 but do have interest and dividend income.
> > Should I send in a tax form with that info even though it is so low I
> > would not owe taxes. I thought this might be best in case they wondered
> > why I didn't file anything. Thanks
>
> You're probably asking the question re the stimulus bill recently passed
> that provides for "rebates" for even those not required to file.
I don't think anyone has yet addressed "Spirit"'s question. He's
asking
if the IRS come knocking if you don't file. Interesting question.
Suppose you are normally a filer, but have a year when you're not
obliged to file because you're below the threshold requiring a return.
If you expect to file in subsequent years, is it best to file at least
something, even if you're not obliged to, to avoid the "evil eye" ??
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by D. Stussy on February 22, 2008, 4:39 pm
Please log in for more thread options > I don't think anyone has yet addressed "Spirit"'s question. He's asking
> if the IRS come knocking if you don't file. Interesting question.
>
> Suppose you are normally a filer, but have a year when you're not
> obliged to file because you're below the threshold requiring a return.
> If you expect to file in subsequent years, is it best to file at least
> something, even if you're not obliged to, to avoid the "evil eye" ??
Having worked non-filer cases in my IRS days, one of the things that the IRS
does look at is the filing threshold. Generally, cases were assigned when
the threshold was exceeded and a return presumed to be due. However, I do
remember being assigned to a couple of cases where the threshold wasn't met.
Usually, these were older people on social security living in high-cost
areas where the SS payments didn't cover basic needs.
Therefore, it can happen but is unlikely. However, with all the people
living beyond their means (cf. mortgage foreclosures, etc.), I would not be
surprised if there were more "economic reality" audits coming down the
chain....
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Ernie Klein on February 22, 2008, 9:28 pm
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> Having worked non-filer cases in my IRS days, one of the things that the IRS
> does look at is the filing threshold. Generally, cases were assigned when
> the threshold was exceeded and a return presumed to be due. However, I do
> remember being assigned to a couple of cases where the threshold wasn't met.
> Usually, these were older people on social security living in high-cost
> areas where the SS payments didn't cover basic needs.
>
> Therefore, it can happen but is unlikely. However, with all the people
> living beyond their means (cf. mortgage foreclosures, etc.), I would not be
> surprised if there were more "economic reality" audits coming down the
> chain....
How about an actual case that I know of that is happening right now.
Last several years earned 75-95K and filed. 2007 not required to file.
2008 will again earn 80+K and file. Reason: multiple surgeries and
unable to work at all in 2007 resulting in zero (taxable) income.
Would this raise a flag if a 0 income return for 2007 is not filed?
--
-Ernie-
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Harlan Lunsford on February 22, 2008, 10:29 pm
Please log in for more thread options Ernie Klein wrote:
>
>
>> Having worked non-filer cases in my IRS days, one of the things that the IRS
>> does look at is the filing threshold. Generally, cases were assigned when
>> the threshold was exceeded and a return presumed to be due. However, I do
>> remember being assigned to a couple of cases where the threshold wasn't met.
>> Usually, these were older people on social security living in high-cost
>> areas where the SS payments didn't cover basic needs.
>>
>> Therefore, it can happen but is unlikely. However, with all the people
>> living beyond their means (cf. mortgage foreclosures, etc.), I would not be
>> surprised if there were more "economic reality" audits coming down the
>> chain....
>
> How about an actual case that I know of that is happening right now.
>
> Last several years earned 75-95K and filed. 2007 not required to file.
> 2008 will again earn 80+K and file. Reason: multiple surgeries and
> unable to work at all in 2007 resulting in zero (taxable) income.
>
> Would this raise a flag if a 0 income return for 2007 is not filed?
>
Not a red flag per se, however maybe a year down the road he may get a
letter calling his attention to the fact that no return filed, and ..
something like,,, 'hey, did you forget?"
In this case he will then respond with explanation.
ChEAr$,
Harlan Lunsford, EA n LA
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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