How far back does the IRS check? December 29, 2007
Posted by mvinson02 in IRS, compliance, professional help, refund, statute of limitations, unfiled returns.add a comment
The IRS currently has a policy that states that you must file at least the past 6 years in order to be in compliance. This doesn’t always mean that you only want to go back and file your past 6 years. When seeking professional help ask for them to search for any SFR’s which would be able to lower your liability if filed properly. This doesn’t mean that you are able to receive a refund if its that far back though. The IRS will only allow you to collect a refund if the returns are filed within the past 3 years. The main downfall to this for us, the filers, is that the IRS’s statute of limitations goes back 10 years. So it is possible for you to owe for the past 3 but could have collected a refund for the prior 4. This is why it is so important to file on time and every year. I personally use a professional to file my taxes but I will inform you on how you are able to file your own in future blogs…
Here are a few extra websites to check out for further information.
IRS Help 4 You
Tax Consultant Blogs
Brain’s Blog
Ashley’s Tax Blog
IRS Minds
Tax Consultant 4 You
Strange Land
How to turn a gambling loss into a win… December 28, 2007
Posted by mvinson02 in Tax.add a comment
Gambling winnings are taxable on your tax return. You can deduct gambling losses on your tax return only if you itemize tax deductions and only to the extent of your gambling winnings. Claim your gambling losses as a miscellaneous tax deduction on Schedule A of Form 1040. It is important to keep an accurate diary or similar record of your gambling winnings and gambling losses. To deduct your gambling losses on your tax return, you must be able to provide receipts, tickets, statements or other records that show the amount of both your gambling winnings and gambling losses. You cannot deduct or carry forward a net gambling loss on your tax return; even if you are a professional gambler.
The IRS provides the following guidelines for proving gambling winnings and gambling losses that you report on your on your tax return:
an accurate diary or similar record regularly maintained by the taxpayer, supplemented by verifiable documentation usually is acceptable evidence for substantiation of gambling winnings and gambling losses. In general, the diary should contain at least the following information:
date and type of specific wager or gambling activity;
name of gambling establishment;
address or location of gambling establishment; and
name(s) of other person(s) present with you at gambling establishment.
amount(s) of gambling winnings or gambling losses.
Verifiable documentation includes, but is not limited to, gambling tickets, canceled checks, credit records, bank withdrawals, and statements of actual gambling winnings or payment slips provided by the gambling establishment. When possible, the diary and available documentation of the placement and settlement of a wager should be supported by such documentation as hotel bills, airline tickets, gasoline credit cards, or affidavits or testimony from responsible gambling officials regarding the wagering activity.
