This just in from my tax update class; CA & the IRS are doing mortgage interest audits and are using 75K of mortgage interest as the trigger. They are sharing info on these.
Just got a two year MN audit for the property tax refund. They are matching up 401(k) & other retirement contributions, capital losses, and passive losses from the W-2s and federal returns, looking for amounts not added back to income on line 5. Not sure what else they may have the ability to match, but this taxpayer got popped for both 2005 & 2006.
And thanks for the details on the EITC audit. I would have thought the 19 year old could still be in high school too, but I would have asked. Also would check to make sure he wasn't supporting himself.
Just got a two year MN audit for the property tax refund. They are matching up 401(k) & other retirement contributions, capital losses, and passive losses from the W-2s and federal returns, looking for amounts not added back to income on line 5. Not sure what else they may have the ability to match, but this taxpayer got popped for both 2005 & 2006.
And thanks for the details on the EITC audit. I would have thought the 19 year old could still be in high school too, but I would have asked. Also would check to make sure he wasn't supporting himself.