Taxation & Estate Planning

Life Events that Cause IRS Problems

By Darrin Mish

Did you know that changes in your lifestyle could affect your taxes?  When these changes happen, you will need to make adjustments to avoid creating IRS Problems. 

Have you recently gotten married?  If you have changed your name, you will need to notify Social Security to get your name changed on your card.  You will also want to check out community property issues. 

Have you recently divorced?  Again, if you have a name change, make sure you contact Social Security.  You also need to be aware of innocent spouse relief especially if your ex-spouse has IRS Problems.  There are child custody tax issues, alimony issues, and community property issues you need to be aware of. 

If you have had a change of address, it is important to notify the IRS so you will continue to receive its correspondence.  Use Form 8822 (Change of Address) for this notification.  If you fail to do this, you might miss a correction notice, an audit notice, or notification of asset seizure.  Remember to keep track of your moving expenses, as these may be deductible.     

Have you had a child recently or adopted a child?  You will now be able to receive child tax credit.  Also, did you know you are allowed education credits? 

A change in jobs or loss of a job will also affect your tax return.  If you work in a job that allows you to receive tips, these need to be reported.  If you use your home or car for business purposes, there are specific allowances for these.  You will also want to check into cafeteria plans and medical savings accounts.

Have you become a first time homeowner or have you sold a house recently?  Both of these processes will give you added tax allowances. 

If your life has been affected by a disaster or theft, you may be able to receive tax relief.  People with disabilities have specific allowances that apply to them.

If you have retired recently, your IRS status has changed.  You will want to check out the allowances you are now able to take. 

If you have experienced IRS Problems in the past and have chosen to file for bankruptcy, this will change how you prepare your taxes. 

If you have made a recent lifestyle change, it is now time to review your financial situation.  Contact our office for assistance with this or any IRS Problems you may be having.  Call Tampa Tax Attorney, Darrin T. Mish, tollfree at (888) 438-6474
 

Full post as published by IRS Problem Solver Blog on April 11, 2008 (boomark / email).