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The IRS is Looking for You for the Right Reasons
There are significant numbers of people the IRS is looking for, but not for the usual reasons. This time, the IRS wants to pay them instead. Literally thousands of refund checks have been returned to the IRS offices due to mailing address errors. Refund checks are mailed to taxpayers based on the addresses on their income tax returns but may be returned as undeliverable because the taxpayer has moved without updating their addresses either with the US Postal Service or the IRS.
In Minnesota the value of returned checks this year went up by about 30% compared to last year. The US Postal Service returned a total of 1,290 checks amounting to about $1.3 million making it an average of $1,009 per check, compared to $778 last year.
In the entire San Bernadino County, the IRS is looking for 907 taxpayers to whom refund checks are due. They total $1.03 million for an average of $1,138 per check. In the High Desert area of California and Nevada, the IRS has 135 refund checks undelivered. These comprise of 11 people in Adelanto, 25 from Apple Valley, 36 in Hesperia, 61 in Victorville and 2 in Wrightwood.
There are 971 taxpayers from Wisconsin who have had their refund checks returned to the IRS. The checks average $886 each. Similarly, in La Crosse County 21 taxpayers are due to receive their tax refunds, averaging $1,060 each, but their checks were returned to the IRS undelivered.
If you are one of those who are due a refund check, all you need to do is to update your address details with the IRS. To do so or to check the status of your refund, go to http://www.irs.gov and use the 'Where's my Refund?' tool. There is also a telephone version of the tool that you can access by calling 1-800-829-1954.
To avert such a recurrence of such incidences, taxpayers are advised to use the e-filing system with direct deposit.
The IRS lets FedEx Off the Hook
The IRS has decided not to dock FedEx for additional employment taxes for 2004 to 2006 on the courier company's 'pick-up and delivery owner operators' whom FedEx considers independent contractors and not employees. This reverses the IRS' earlier decision on Dec 20 2007 when the agency informed FedEx that in a 2002 audit they concluded that the courier company's delivery drivers to be employees. This would have resulted in about $319 million in tax penalties plus interest for 2002 alone, not including subsequent years.
FedEx confirmed recently that the IRS has also decided not to impose the $319 million in penalties plus interest for 2002. The courier company made an SEC filing declaring the IRS' audit team's confirmation that it would not pursue taxes on their independent contractors for 2002 and also the other 3 years under audit, namely 2004 to 2006. As for the subsequent years of 2007 and 2008, FedEx believes that the same decision will be upheld.
Darrin T. Mish is a veteran, nationally recognized tax attorney who has focused on providing IRS help to taxpayers for over a decade. He regularly travels the country training other attorneys, CPAs and enrolled agents on how to handle their toughest cases with the IRS. He is highly ranked among the top attorneys in the country, with an AV rating from Martindale-Hubbell and a perfect 10 on Avvo.com. Martindale-Hubbell has also honored him with a listing in their Bar Register of Preeminent Lawyers. He is a member of the American Society of IRS Problem Solvers and the Tax Freedom Institute. With clients on every continent but Antarctica, he has what it takes to solve your IRS problems no matter where you live in the world. If you would like more information about his practice and how he can help you, please call his office at (813) 229-7100 or toll free at 1-888-GET-MISH.
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