Tuesday, May 18, 2010

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Be aware that appeals officers are even more senior than agents, with much more experience and knowledge behind them. If you're making a specious argument that the tax law doesn't support, the appeals officer will quickly shoot it down. However, if the issue is complicated and your argument is founded in tax law and court cases, the appeals officer can make quick work of the analysis -- and might just find in your favor. Computer Technology
Again, your best bet if you're audited is to retain the services of a qualified and experienced tax pro who can argue your case without passion or prejudice. Such a person already knows the most effective ways to help you quicklyWake up your life resolve a conflict with the IRS. Hiring such a person is not cheap, but quality services never are, and you could pay a lot more if you don't hire a professional and the audit The Matrix Revolutionsdoesn't go well. The tax code has become so complicated that you're unlikely to know the law as it applies to your tax return and your rights as a taxpayer. That's why a it is a book for youqualified tax pro can be worth every dollar of his or her fee.But again, for those of you who decide to go the do-it-yourself route, stick to the game plan we've discussed here. And if you ever decide to remove your own appendix, well, good luck with that, too. Words to Live by
This article was originally published on Oct. 13, 2006. It has been updated.When he's not dealing with tax issues, Fool contributor Roy Lewis is a motivational speaker who lives in a trailer down by the river. He understands that The Motley Fool is all about investors writing for investors. You can take a look at the stocks he owns, as long as you promise not to ask him which stock to buy. He'll be glad to help you compute your gain or loss when you finally sell a stock, though.Copyrighted, The Motley Fool. All rights reserved.
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Surviving an IRS Audit

We all dread the thought of having the IRS tell something about skillus it wants to review a previous year's tax return. If you get audited, your best bet is to seek out a qualified tax professional. But if you're a do-it-yourself type of person, here are a few tips you can use to help you survive the audit process.Don't ignore the notice. You generally have 30 days to respond to an audit notice. If you don't respond, the IRS can take action, such as automatically adjusting your tax liability, and the next correspondence you'll receive is a bill
Read and follow the notice. The audit notice will give you specific information as to what items are being examined. Knowing what's being scrutinized will help you determine what you need to bring to the audit, so you can substantiate the items in question.
Organize your records. Making the auditor's job easier will win you some points. The auditor will at least believe that you're an organized personno reason and that all of your items are documented and justified. Don't be afraid to group the items in question, or attach an adding-machine tape that matches the tax return. That will allow the auditor to quickly review the important issues. Don't believe those who tell you that you can just throw your records in a bag, drop it on the auditor's desk, and shout,i am crazy "You figure it out!" That just doesn't work. Remember, it's your legal responsibility to prove your deductions.Replace missing records. If you're going through your records and find that some of them are missing, call for duplicates immediately. Don't just go to the audit and claim that the records are missing or lost. That does you no good at all. At best, the auditor willthe love of my life request that you obtain the records. At worst, the deduction in question will be denied, since there are no supporting documents.
Bring only what you're asked for. Leave at home any additional records and items not requested in the original audit notice. That way, if the auditor is curious about something else on the tax return, but the item was not on the original audit notice, you can politely tell him or her that those records are at home. It's likely that the issue will be dropped right there.
Don't be a jerk! Contrary to popular opinion, all of the employees at the IRS are people, too. They have wives, husbands, and kids, and they're employed at the IRS because they're working in their chosen profession. And make no mistake -Living life over- they are trained professionals. Taking out your frustrations on an auditor will get you nowhere. Insulting the auditor verbally will not solve any problems. And assaulting one physically is a federal offense. Remember, these people are just trying to do their jobs. Be courteous, even if the auditor is not courteous to you or seems
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Wednesday, May 5, 2010

Facebook Privacy Policies Draw Criticism by 15 Consumer Groups

Facebook Inc., the largest social networking site, is facing renewed criticism from consumer groups that it’s not doing enough to protect information after a security flaw exposed private messages between friends.
Recent changes at Facebook “violate user expectations, diminish user privacy, and contradict Facebook’s own representations,” said Marc Rotenberg, who runs the Electronic Privacy Information Center, one of 15 groups that complained about Facebook in a filing with the Federal Trade Commission late yesterday.
Signers urged the FTC to investigate Facebook’s privacy practices and force it to take steps to better guard against security breaches. The complaint follows an effort led by New York Democratic Senator Charles Schumer last week to get the FTC to review how the social network deals with user data.
Consumer groups stepped up criticism of Facebook earlier this month after the company added features that let users tell their friends about products and other Web sites they favor. The program builds on an existing feature that lets people click “like” when a friend posts a status update, photo or Web link.
While adding those tools, Palo Alto, California-based Facebook altered how a user’s profile information is classified and disclosed, according to the complaint. The result, EPIC says, is that “Facebook now discloses personal information to the public that Facebook users previously restricted.”
Facebook spokesman Andrew Noyes said the company wouldn’t be able to comment until after it reviewed the complaint to the FTC. A message left after regular business hours with the FTC’s office of public affairs wasn’t immediately returned, nor was a call to FTC spokeswoman Claudia Bourne-Farrell.
Shutting Down Chat
Earlier in the day, Facebook temporarily shut down its “chat” feature after discovering a security flaw that let users see friends’ messages that were not meant to be shared.
The software error, reported initially by technology blog TechCrunch, exposed the chat conversations and friend requests of people within a user’s network when they clicked on an option in the site’s settings.
“When we received reports of the problem, our engineers promptly diagnosed it and temporarily disabled the chat function,” Facebook spokeswoman Malorie Lucich said in a statement.
After Schumer’s public remarks last week, company officials met with representatives of the senator and agreed that Facebook users should control public access to personal information and that the company should explain how to accomplish that, Elliot Schrage, Facebook’s vice president of global communications and public policy, said at the time.
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Euro mauled, stocks sag as debt crisis woes mount

Gold hit a record euro high at 918.74 euros an ounce and the yen strengthened, both benefiting from safe-haven buying from investors rattled by warnings from European leaders that the problems facing Greece could spread across borders.
The euro fell below $1.28 in Asia, its lowest level since March of last year, and down over 10 percent since the start of the year.
Japan's Nikkei average .N225 fell more than 3 percent to its lowest level in nearly two months as the market caught up with the global selloff following a three-day holiday this week.
"The focus stays on the euro as the contagion trade persists," said JP Morgan in a morning note. "Today's ECB meeting has grown immensely in importance as the redeployment of some form of credit crisis tools seems increasingly possible."
The European Central Bank holds its monthly meeting later on Thursday and, while it is expected to keep rates unchanged at 1 percent, it is likely to try to assure markets that it can prevent the Greek debt crisis spreading.
The cost of insuring Greek, Spanish and Portuguese debt against default has been rising. Moody's placed Portugal's credit rating on a three-month review, pointing to a downgrade and pushing the cost of insuring against the country's default risk to a record high.
Asian shares outside Japan fell on Thursday, following Wall Street and Europe, with the MSCI index dropping over 1 percent
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Australian shares .AXJO fell 1.3 percent and Seoul's composite KOSPI stock index opened more than 2 percent down. Shanghai and Hong Kong stocks were lower.
U.S. stocks fell between 0.6 and 0.7 percent, finding little support from a private-sector report showing gains in the U.S. labor market for the first time since January 2008.
The U.S. government's comprehensive labor market report for April is released on Friday.
Investors are worried that Greece will not be able to carry out the austerity measures it pledged to gain a record 110 billion euro IMF/EU aid package.
Violent protests on Wednesday in Athens against the budget cuts intensified their fears.
Athens vowed it would not retreat from its measures whatever the political price, but investors, so far, remain unconvinced.
"The focus right now is primarily on how this is going to play out in Europe, how much damage is going to be done," said Marc Pado, U.S. market strategist at Cantor Fitzgerald & Co.
"How this gets resolved will tell the rest of the euro countries that are under pressure, 'Here are the parameters for help.'"
The euro's weakness helped the dollar index hold impressive gains this week. The index .DXY was at 84.11, not far from a one-year high of 84.31 hit earlier in the session.
The euro fell sharply against the yen on Wednesday but was relatively steady against the currency on Thursday at 120.55 yen.
Policymakers, including the European Central Bank's Axel Weber, and International Monetary Fund chief Dominique Strauss-Kahn warned of the dangers of contagion in other high-debt euro zone nations.
German Chancellor Angela Merkel put the crisis in more stark terms.
"We're at a fork in the road," Merkel told German lawmakers. "This is about nothing less than the future of Europe, and with it the future of Germany in Europe." [ID:nLDE6440HH]we were dear to each other
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