no income

Spirit · Joined: 21 Feb 2008 Posts: 2

I was unemployed in 2007 but do have interest and dividend income.
Should I send in a tax form with that info even though it is so low I
would not owe taxes. I thought this might be best in case they wondered
why I didn't file anything. Thanks

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Archived from group: misc>taxes>moderated

removeps-groups · Joined: 09 Dec 2007 Posts: 98

On Feb 20, 8:20 pm, decreat...@webtv.net (Spirit) wrote:

> I was unemployed in 2007 but do have interest and dividend income.
> Should I send in a tax form with that info even though it is so low I
> would not owe taxes. I thought this might be best in case they wondered
> why I didn't file anything. Thanks

Is your income less than your exemption + standard deduction? If yes,
then you don't have to file. Did you get unemployment compensation?

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Phil Marti · Joined: 25 Aug 2007 Posts: 2520

"Spirit" wrote:

>I was unemployed in 2007 but do have interest and dividend income.
> Should I send in a tax form with that info even though it is so low I
> would not owe taxes. I thought this might be best in case they wondered
> why I didn't file anything.

If you meet the filing requirement in the 1040 instructions file. If not,
they won't be curious.

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Phil Marti
Clarksburg, MD

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Benjamin Yazersky CPA · Joined: 02 Jan 2008 Posts: 41

On Feb 20, 11:20 pm, decreat...@webtv.net (Spirit) wrote:
> I was unemployed in 2007 but do have interest and dividend income.
> Should I send in a tax form with that info even though it is so low I
> would not owe taxes. I thought this might be best in case they wondered
> why I didn't file anything. Thanks
>
> --

Check the 1040 intructions for the requirement to file.
If your income is below the level required to file, then you don't
need to.

Sometimes, tax returns are filed, even if not required, as there are
third party reporting items such as 1099's for INT, DIV, or like in
your case unemployment. This could help to avoid correspondence down
the road. It also starts the statute of limitations to run.

___________________________________
>>
-----> real address on hobokeni or hobokenx <-----

"This written advice was not intended or written to be used, and it
cannot
be used by any taxpayer, for the purpose of avoiding penalties that
may be
imposed on the taxpayer."

(The foregoing legend has been affixed pursuant to U.S. Treasury
Regulations
governing tax practice.)

The information transmitted is intended only for the person or entity
to
which it is addressed and may contain confidential and/or privileged
material. Any review, retransmission, dissemination or other use of,
or
taking of any action in reliance upon, this information by persons or
entities other than the intended recipient is prohibited. If you
received
this in error, please contact the sender and delete the material from
any
computer.

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Spirit · Joined: 21 Feb 2008 Posts: 2

Re: no income

Group: misc.taxes.moderated Date: Thu, Feb 21, 2008, 9:02am From:
byaz55@lycos.com (Benjamin Yazersky CPA)
On Feb 20, 11:20 pm, decreat...@webtv.net (Spirit) wrote:
I was unemployed in 2007 but do have interest and dividend income.
Should I send in a tax form with that info even though it is so low I
would not owe taxes. I thought this might be best in case they wondered
why I didn't file anything. Thanks
--
Check the 1040 intructions for the requirement to file. If your income
is below the level required to file, then you don't need to.
Sometimes, tax returns are filed, even if not required, as there are
third party reporting items such as 1099's for INT, DIV, or like in your
case unemployment. This could help to avoid correspondence down the
road. It also starts the statute of limitations to run.
___________________________________
>>
-----> real address on
hobokeni or hobokenx <-----
"This written advice was not intended or written to be used, and it
cannot
be used by any taxpayer, for the purpose of avoiding penalties that may
be
imposed on the taxpayer."
(The foregoing legend has been affixed pursuant to U.S. Treasury
Regulations
governing tax practice.)
The information transmitted is intended only for the person or entity to
which it is addressed and may contain confidential and/or privileged
material. Any review, retransmission, dissemination or other use of, or
taking of any action in reliance upon, this information by persons or
entities other than the intended recipient is prohibited. If you
received
this in error, please contact the sender and delete the material from
any
computer.
--
<< -------------------------------------------
> << nor
can it used, for the purpose of avoiding penalties >> << that may be
imposed upon the taxpayer. >>
<<
> << to
this newsgroup as well as our anti-spamming policy >> <<
are at www.asktax.org.
>> << Copyright (2007) - All rights reserved.
>>
<< ------------------------------------------- I went to school
last year,(at my expense) and looked for work, I didn't draw
unemployment. My interest and divdend income is under $2000. I know
there is no refund or rebate for me but should I file since I have
received reportable income? Thanks for your response.

========================================= MODERATOR'S COMMENT:
When responding to a post, only include in your response those portions of
the prior post that are necessary to context, or to which you specifically
reply, and delete the rest. Thank you for your assistance.

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Tony Cox · Joined: 22 Feb 2008 Posts: 1

On Feb 21, 2:23 pm, Harlan Lunsford wrote:
> Spirit wrote:
> > I was unemployed in 2007 but do have interest and dividend income.
> > Should I send in a tax form with that info even though it is so low I
> > would not owe taxes. I thought this might be best in case they wondered
> > why I didn't file anything. Thanks
>
> You're probably asking the question re the stimulus bill recently passed
> that provides for "rebates" for even those not required to file.

I don't think anyone has yet addressed "Spirit"'s question. He's
asking
if the IRS come knocking if you don't file. Interesting question.

Suppose you are normally a filer, but have a year when you're not
obliged to file because you're below the threshold requiring a return.
If you expect to file in subsequent years, is it best to file at least
something, even if you're not obliged to, to avoid the "evil eye" ??

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D. Stussy · Joined: 25 Aug 2007 Posts: 126

"Tony Cox" wrote in message@60g2000hsy.googlegroups.com...
> I don't think anyone has yet addressed "Spirit"'s question. He's asking
> if the IRS come knocking if you don't file. Interesting question.
>
> Suppose you are normally a filer, but have a year when you're not
> obliged to file because you're below the threshold requiring a return.
> If you expect to file in subsequent years, is it best to file at least
> something, even if you're not obliged to, to avoid the "evil eye" ??

Having worked non-filer cases in my IRS days, one of the things that the IRS
does look at is the filing threshold. Generally, cases were assigned when
the threshold was exceeded and a return presumed to be due. However, I do
remember being assigned to a couple of cases where the threshold wasn't met.
Usually, these were older people on social security living in high-cost
areas where the SS payments didn't cover basic needs.

Therefore, it can happen but is unlikely. However, with all the people
living beyond their means (cf. mortgage foreclosures, etc.), I would not be
surprised if there were more "economic reality" audits coming down the
chain....

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Phil Marti · Joined: 25 Aug 2007 Posts: 2520

"Tony Cox" wrote:

> I don't think anyone has yet addressed "Spirit"'s question. He's
> asking
> if the IRS come knocking if you don't file. Interesting question.
>
> Suppose you are normally a filer, but have a year when you're not
> obliged to file because you're below the threshold requiring a return.
> If you expect to file in subsequent years, is it best to file at least
> something, even if you're not obliged to, to avoid the "evil eye" ??

No

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Phil Marti
Clarksburg, MD

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Ernie Klein · Joined: 25 Aug 2007 Posts: 176

In article ,
"D. Stussy" wrote:

> Having worked non-filer cases in my IRS days, one of the things that the IRS
> does look at is the filing threshold. Generally, cases were assigned when
> the threshold was exceeded and a return presumed to be due. However, I do
> remember being assigned to a couple of cases where the threshold wasn't met.
> Usually, these were older people on social security living in high-cost
> areas where the SS payments didn't cover basic needs.
>
> Therefore, it can happen but is unlikely. However, with all the people
> living beyond their means (cf. mortgage foreclosures, etc.), I would not be
> surprised if there were more "economic reality" audits coming down the
> chain....

How about an actual case that I know of that is happening right now.

Last several years earned 75-95K and filed. 2007 not required to file.
2008 will again earn 80+K and file. Reason: multiple surgeries and
unable to work at all in 2007 resulting in zero (taxable) income.

Would this raise a flag if a 0 income return for 2007 is not filed?

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-Ernie-

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Harlan Lunsford · Joined: 25 Aug 2007 Posts: 790

Ernie Klein wrote:
> In article ,
> "D. Stussy" wrote:
>
>
>> Having worked non-filer cases in my IRS days, one of the things that the IRS
>> does look at is the filing threshold. Generally, cases were assigned when
>> the threshold was exceeded and a return presumed to be due. However, I do
>> remember being assigned to a couple of cases where the threshold wasn't met.
>> Usually, these were older people on social security living in high-cost
>> areas where the SS payments didn't cover basic needs.
>>
>> Therefore, it can happen but is unlikely. However, with all the people
>> living beyond their means (cf. mortgage foreclosures, etc.), I would not be
>> surprised if there were more "economic reality" audits coming down the
>> chain....
>
> How about an actual case that I know of that is happening right now.
>
> Last several years earned 75-95K and filed. 2007 not required to file.
> 2008 will again earn 80+K and file. Reason: multiple surgeries and
> unable to work at all in 2007 resulting in zero (taxable) income.
>
> Would this raise a flag if a 0 income return for 2007 is not filed?
>
Not a red flag per se, however maybe a year down the road he may get a
letter calling his attention to the fact that no return filed, and ..
something like,,, 'hey, did you forget?"

In this case he will then respond with explanation.

ChEAr$,
Harlan Lunsford, EA n LA

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Ernie Klein · Joined: 25 Aug 2007 Posts: 176

In article ,
Harlan Lunsford wrote:

> In this case he will then respond with explanation.

Thanks Harlan, I will let it go for now and deal with it if and when
it's questioned -- if ever.

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-Ernie-

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