Posted on: 02nd Sep, 2009 04:45 am
IRS has decided to expand the program which was designed to catch tax cheats. Under the new program, inconsistencies between mortgage payments and income would be searched for. IRS would study whether or not it should use mortgage-interest payment data provided to it by banks in order to catch tax cheats.
This data can also be used to catch those consumers who report less income than they paid in mortgage interest. The IRS is also planning to expand the regional research project on mortgage interest to a countrywide level by December 2011. This initiative is also known as Compliance Initiative Projects and would involve examination of a small number of tax returns to assess new strategies.
This data can also be used to catch those consumers who report less income than they paid in mortgage interest. The IRS is also planning to expand the regional research project on mortgage interest to a countrywide level by December 2011. This initiative is also known as Compliance Initiative Projects and would involve examination of a small number of tax returns to assess new strategies.
Hi,
There are thousands of homeowners who have paid more than $20k in mortgage interests, yet did not file a tax return or reported an income which hardly covers their mortgage interest and other basic living expenses. The IRS now wants to catch these tax cheats using the mortgage payment data.
Many small-business owners, for instance roofers, carpenters etc, get paid in cash and they often do not report their income to the IRS. The new program aims to catch these non-filers and under-reporters by finding out the discrepancies in their mortgage payments and income. However, this program could also put those families under scrutiny, who have suffered job losses but have somehow kept their mortgages afloat using their savings.
There are thousands of homeowners who have paid more than $20k in mortgage interests, yet did not file a tax return or reported an income which hardly covers their mortgage interest and other basic living expenses. The IRS now wants to catch these tax cheats using the mortgage payment data.
Many small-business owners, for instance roofers, carpenters etc, get paid in cash and they often do not report their income to the IRS. The new program aims to catch these non-filers and under-reporters by finding out the discrepancies in their mortgage payments and income. However, this program could also put those families under scrutiny, who have suffered job losses but have somehow kept their mortgages afloat using their savings.