audit on tax returns?

[qbkilla]

anyone ever been, or know anyone who has been audited?

im going to do my taxes and i paid off my student loan in 2014. i call the dept of ed, sometimes they tell me there was interest i can claim, then other people say i can't claim it as it was a payoff.

i want to claim it, but im worried if i get audited they may say i lied.

will you go to jail if they say you lie? i know how the government is and tries to screw people over tiny thigngs, just wondering if it worth claiming the interest and then they try and get me

 

[rippedyearround]

If you paid off student debt during the year, then your loan provider will provide you with Form 1098-E

This form will show you the deductible portion of your student loan interest. If you haven't received that, you should find out why.

 

[Giants83]

Go to the IRS webpage and look at the list of things you can claim. And I highly doubt you'll be audited. That's usually reserved for businesses or people with tons of deductions and big money. You can try googling your question but I'm pretty sure you can.

 

[rippedyearround]

It takes years of serious tax evasion to be out in jail.

The most likely "worst case scenario" is they garnish your wages straight out of your bank accoun for the taxes you owe...

 

[oldDIRTYbastard]

I've heard that audits are at an all-time low due to low staffing or similar. Not sure on the validity though so you might need to research that.

 

[someday]

If you paid off student debt during the year, then your loan provider will provide you with Form 1098-E

This form will show you the deductible portion of your student loan interest. If you haven't received that, you should find out why.

Exactly. It's not a guessing game...they tell you exactly how much interest you paid. If you didn't get the form, most loan servicers have the info online when you log into your account. Whether it's deductible or not is another story.

 

[rippedyearround]

Exactly. It's not a guessing game...they tell you exactly how much interest you paid. If you didn't get the form, most loan servicers have the info online when you log into your account. Whether it's deductible or not is another story.

This is correct. It may or may not be based on your income.

 

[ZOFO1973]

You can claim the interest only, not the principal. Call your lender and get the interest statement. You must include it with your taxes. If not, you may open yourself to audit and underpayment fees. I wouldn't F around with the IRS. Once they get you in their crosshairs , they will always scrutinize and be up your ass.

 

[qbkilla]

here is what happened, numbers not exact

my original student loan was about 5,000

i didnt pay it for years,,and it went up to about 7,000 in interest in fees

i paid it off in 2014 as a payoff, agreed to 6,000

i called them, they said none was interest, it was all fees. i told them i paid 1k more than i took, how can none be interest. eventaully ,someoen said $800 interest.

called back, a diff guy said he looked into it and said he has no idea how they came to that and thre is no interst and everyone who told me from the us dept of education (his own company) made mistake and they are just looking back at that mistake that is in the notes

there can be no 1098 form as he says there is no interest listed it was all fees

but every time i call them i can say "can you give me the interest just look in the notes" and they give me the $800.

i can record them on video saying this, so i want to claim it on my turbotax, which wil save me about $200

yes,,this is how screwed up and a mess teh US government is

one time a guy actually hung up on me on the phone

what would you guys do? if i can get them on the phone right now to tell me i have 800 intereste dollars, why not claim it on turbotax?

just because one guy said it was a mistake,,but its still in their notes and being quoted to me over the phone, lol

do you really need a 1098, people have said just use turbotax

thoughts?

 

[rAJJIN]

I highly doubt you'll be audited. That's usually reserved for businesses or people with tons of deductions.

Not True. I have been audited twice and I work as a union carpenter.

The second time they said I owe was a mistake by the IRS.
So I had to appeal with what is called an amended return ( change order)
This takes weeks and months of going back and fourth. They finally just wore me out always saying I missed this or didn't sign this. Fill it out again and wait 60-90 days to hear back with some more bullshit.

If you owe them though as mentioned they will get it swiftly! adding interest and penalties... garnishing your wages if you miss a payment agreement.
:banghead: Dirty cock suckers.

 

[HOOLIGAN]

I was audited a few years back, In 2007 the IRS notified me that I owed them 3k from the 2005 tax year.

I spoke with an ex IRS guy who now works for himself helping people with audits/IRS problems.
He told me right away that he could not offer me his services as he works with people who owe much more than my measly 3k.
The advise he gave me was this:
You cannot beat them! You've been caught lying!
The best you can do is dispute any of the deductions that you have proof for.

I got it lowered to $2,700.

 

[Giants83]

Not True. I have been audited twice and I work as a union carpenter.



The second time they said I owe was a mistake by the IRS.

So I had to appeal with what is called an amended return ( change order)

This takes weeks and months of going back and fourth. They finally just wore me out always saying I missed this or didn't sign this. Fill it out again and wait 60-90 days to hear back with some more bullshit.



If you owe them though as mentioned they will get it swiftly! adding interest and penalties... garnishing your wages if you miss a payment agreement.

:banghead: Dirty cock suckers.

I'm sure it does happen. Sucks they came at you twice. I went three years with all sorts of medical deductions and never heard from them. I did owe from 1099 once. I was 17 and never paid it. They tacked interest on every year but never came after me. Every year they threatened but didn't do a thing except keep my refund if I had one. I was off the books for years. When I finally became financially responsible and started paying off debts I called them to pay the final 1000 I owed them and it was gone. 10 year statue of limitations. Seeing I never actually paid them the date was never reset and it just ran out.

 

[get it in ya]

Not True. I have been audited twice and I work as a union carpenter.

The second time they said I owe was a mistake by the IRS.
So I had to appeal with what is called an amended return ( change order)
This takes weeks and months of going back and fourth. They finally just wore me out always saying I missed this or didn't sign this. Fill it out again and wait 60-90 days to hear back with some more bullshit.

If you owe them though as mentioned they will get it swiftly! adding interest and penalties... garnishing your wages if you miss a payment agreement.
:banghead: Dirty cock suckers.

wow the odds I think would be very low for a union carpenter to be audited, that's crazy. I am a union laborer and I always wondered what are the chances. I don't claim anything but my rent because I don't want any headaches. like you said they are dirty. not sure whats worse the irs on your back or the feds. don't mess with the irs, they will burry you

 

[rippedyearround]

here is what happened, numbers not exact

my original student loan was about 5,000

i didnt pay it for years,,and it went up to about 7,000 in interest in fees

i paid it off in 2014 as a payoff, agreed to 6,000

i called them, they said none was interest, it was all fees. i told them i paid 1k more than i took, how can none be interest. eventaully ,someoen said $800 interest.

called back, a diff guy said he looked into it and said he has no idea how they came to that and thre is no interst and everyone who told me from the us dept of education (his own company) made mistake and they are just looking back at that mistake that is in the notes

there can be no 1098 form as he says there is no interest listed it was all fees

but every time i call them i can say "can you give me the interest just look in the notes" and they give me the $800.

i can record them on video saying this, so i want to claim it on my turbotax, which wil save me about $200

yes,,this is how screwed up and a mess teh US government is

one time a guy actually hung up on me on the phone

what would you guys do? if i can get them on the phone right now to tell me i have 800 intereste dollars, why not claim it on turbotax?

just because one guy said it was a mistake,,but its still in their notes and being quoted to me over the phone, lol

do you really need a 1098, people have said just use turbotax

thoughts?

I can't speak for what's going on with your loan servicer, but if you claim an interest deduction and then get audited, you'll need that 1098 to prove to the IRS that you paid interest on the loan. If you don't have that, then there will likely be interest and penalties that exceed the $200 you might save this year.

If you (they) cant get the loan figured out, then you may just have to forgo the deduction. Sucks - but the good news it's only $200...

 

[bigpapa]

Honestly, i work in finance and my wife works for the government in auditing, if you were ever to lie a tad on your taxes, this is the year to do it. They are extremely under funded and under staffed they are literally accepting everything, unless it is a huge discrepancy or blatant lie, if you are a few hundred bucks off, i doubt they will do anything

 

[GetYucked]

Honestly, i work in finance and my wife works for the government in auditing, if you were ever to lie a tad on your taxes, this is the year to do it. They are extremely under funded and under staffed they are literally accepting everything, unless it is a huge discrepancy or blatant lie, if you are a few hundred bucks off, i doubt they will do anything

Understating income by 25% or more takes the audit window from 3 years to 6. Small amounts will likely be ignored, like stated above.

On the other hand, fraud, allows them to do much more. However, the burden of proof for fraud is on the IRS.

 

[qbkilla]

I can't speak for what's going on with your loan servicer, but if you claim an interest deduction and then get audited, you'll need that 1098 to prove to the IRS that you paid interest on the loan. If you don't have that, then there will likely be interest and penalties that exceed the $200 you might save this year.

If you (they) cant get the loan figured out, then you may just have to forgo the deduction. Sucks - but the good news it's only $200...

thank you for the reply,,,,is a 1098 required for any deduction do you know?

or does anyonelse know?

it seems like something like turobo tax eliminates the need for forms, or do we send forms and then also do the turbo tax online?

thanks for all the replies and assistance