Jump to content
Chapala.com Webboard

May need help with IRS audit


Recommended Posts

We had a similar problem when we lived in the State of Sonora.  We contacted a CPA via phone, asked questions and then scanned documents to them for review.  We wanted to make sure what we were sending to the IRS was actually what they wanted and nothing more, nothing less.  There are sites online for most states with credentials for CPA's etc.  Worked for us, not saying will for you.

 

  • Like 1
Link to comment
Share on other sites

" 87,000 armed IRS agents"

"This claim misrepresents a 2021 U.S. Treasury Department report estimating that around $80 billion in funding would allow the IRS to incrementally hire nearly 87,000 employees by the year 2031. Most of those hires would be replacements for workers retiring from existing positions, including not only IRS enforcement agents, but also customer service and technology specialists. According to the Treasury Department, audit rates for those earning less than $400,000 in actual income will not rise. 

...only “special agents” who investigate criminal violations of the tax code are authorized to carry firearms."

I don't like paying taxes either but I am in favor of the truth.

 

Cactus Mike

 

  • Like 2
  • Thanks 5
  • Haha 1
Link to comment
Share on other sites

I actually spoke with the IRS agent who seems a decent sort.  This is a FATCA compliance check to confirm the numbers on my tax return agree with the Actinver statements.  I sent the requested information this morning.  Interestingly they want to see the visa stamps on our passports, I assume to find out whether or not we've been visiting one or more of those tax haven islands.  

They are really following up on FATCA.  Be aware and CYA.  

  • Thanks 1
Link to comment
Share on other sites

17 hours ago, Mainecoons said:

I actually spoke with the IRS agent who seems a decent sort.  This is a FATCA compliance check to confirm the numbers on my tax return agree with the Actinver statements.  I sent the requested information this morning.  Interestingly they want to see the visa stamps on our passports, I assume to find out whether or not we've been visiting one or more of those tax haven islands.  

They are really following up on FATCA.  Be aware and CYA.  

They may checking if you are required to file form IRS 8938. specially  if they asked to see your passports. They were checking to see if you were a non resident of USA. or US person

Instructions for Form 8938 (11/2021) | Internal Revenue Service (irs.gov)

Link to comment
Share on other sites

On 3/5/2023 at 11:47 PM, CactusMike said:

" 87,000 armed IRS agents"

"This claim misrepresents a 2021 U.S. Treasury Department report estimating that around $80 billion in funding would allow the IRS to incrementally hire nearly 87,000 employees by the year 2031. Most of those hires would be replacements for workers retiring from existing positions, including not only IRS enforcement agents, but also customer service and technology specialists. According to the Treasury Department, audit rates for those earning less than $400,000 in actual income will not rise. 

...only “special agents” who investigate criminal violations of the tax code are authorized to carry firearms."

I don't like paying taxes either but I am in favor of the truth.

 

Cactus Mike

 

I don't understand....  If all they are doing is replacing retiring agents why do they need an extra 80 billion dollars?   Seems totally illogical   And as they currently have 78,000 employees then is over 100% of the IRS workforce going to retire in 10 years??  Seems totally illogical

Link to comment
Share on other sites

46 minutes ago, Mostlylost said:

I don't understand....  If all they are doing is replacing retiring agents why do they need an extra 80 billion dollars?   Seems totally illogical   And as they currently have 78,000 employees then is over 100% of the IRS workforce going to retire in 10 years??  Seems totally illogical

House passes bill nixing $72 billion in funding for 87,000 new IRS agents

By 

Victor Nava

January 9, 2023 10:55pm

Link to comment
Share on other sites

4 hours ago, Mostlylost said:

I don't understand....  If all they are doing is replacing retiring agents why do they need an extra 80 billion dollars?   Seems totally illogical   And as they currently have 78,000 employees then is over 100% of the IRS workforce going to retire in 10 years??  Seems totally illogical

Currently the IRS is understaffed and unable to audit wealthy tax cheats with high power lawyers. The IRS will now be able to audit questionable returns of people making over $400,000 a year. Makes sense to me. Why tax rich people? Because that's where the money is. 😁

  • Like 1
Link to comment
Share on other sites

This report from a firm of tax consultants indicates that IRS only collected 14 million in non compliance assessments while spending $574 million.  Other stuff I've seen indicates the costs to FFIs(Foreign Financial Institutions) in the billions.  According to these tax professionals the law has raised a lot less than the $8.7 billion projected through 2020.  One of the side results is that tens of thousands of expats have had foreign bank accounts canceled by FFIs who don't care to deal with the IRS hassle.

https://rsmus.com/insights/tax-alerts/2022/treasury-report-highlights-fatca-failures.html

Apparently, there are very few other countries that have laws like this.  For sure, Canada doesn't.

It seems the myth that the tax collectors were going to find hundreds of billions stashed overseas was largely a fiction, probably because this didn't exist in the first place and as usual the folks with real money know how to put it out of the reach of government. 

Once again, FATCA has just turned out being almost all about putting the screws to the regular folk expats like us.  

If you are interested in where FATCA came from, it was passed and signed into law in 2010.  The who who were in charge at that time and the who who voted for it are a matter of public record, very easy to look up.

I sent the IRS examiner a submittal with the requested information, which seemed to be mainly about verifying I am reporting the same numbers Activer is giving me.  I sent them copies of the year end statements showing this is clearly so, we'll see what happens next.  Interesting they didn't just check the report the Mexican government is supposed to be giving them which according to Actinver they submitted for 2020 with the same numbers I reported.

  • Like 1
Link to comment
Share on other sites

Correct.  The FBAR report goes to FinCen.  However, the income reporting goes to the IRS.  The FBAR report does not report income, only accounts and balances and where the accounts are.  Not sure who the foreign banks report to, if they are reporting to Treasury that might explain why the IRS seems to be asking for already provided information.

I do wonder why some claim it takes a lot of time to comply with FATCA and FBAR.  We have 4 foreign accounts, it took me about 30 minutes including checking to file the FBAR directly on line.  Turbotax makes reporting the income and foreign tax paid a snap, less than 30 minutes there and you know the math is correct.  It also files your tax return on line.  

I don't like this tax much but I can't really claim it is hard to deal with.  Expensive, yes, but not hard to file for.

And I'm not an accountant.

 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...