Tax season is creeping up on us again.. and as we get closer, something to think about it how you would prepare for an audit.

According to WalletPop, the IRS is ramping up the number of audits in an attempt to close the gap between the taxes it believes it should have collected and what was actually collected. In 2001, the tax gap was $250 billion.

There are 2 types of audits, paper and people. A paper audit is most common – if the IRS thinks you made a mistake, they were notify you that they have recalculated your tax , they may also ask you to send additional documentation to back up claims you may have made. A audit in person is less common and are generally triggered by something very out of the ordinary on your return. Typically with an in person audit, the IRS will set up a time to meet with you and let you know ahead of time what documents they need to review.

A list of frequently asked tax audit questions can be found here: http://www.walletpop.com/2011/01/03/tax-audit-frequently-asked-questions/

So the dreaded April 15th has come and gone, the last thing you are probably thinking about is your 2010 taxes. It is always good to be thinking ahead of the game in regards to deductions and knowing what your options are.

Tax deductions & credits available for 2010:

Homebuyer maximum credit of $8,000 valid on new home purchased until April 30, if the binding contact was entered by April 30, you have until June 30 to close on the property.

American opportunity credit for college expenses – a credit of $2,500 annually can be used by eligible students in the first 4 years of college..books and supplies are also qualified as eligible expenses.

Tax credit for installing storm windows or making energy-saving improvements to your home. The credit covers 30 percent of the cost up to a maximum credit of $1,500

If you have the opportunity to get a little bit of help from Uncle Sam, take advantage!

I could not believe my eyes when I saw this article on Yahoo. According to the Associated Press, a Michigan home sold to a women for $1.75 on Ebay. There were 8 others that had a bid on this home, however this Chicago women won out with her under $2.00 bid. It appears there is some work to be done on the home and some back taxes, however no matter how you look at it, it is a GREAT deal.
The sad thing in all this is that someone lived in this home and unfortunately lost their home. The women that purchased the home has not even seen the home, and has no intentions on living there. With what is happening in today’s economy, this is bound to be happening more. At one point or another hopefully Ebay will be more known for it’s bid environment on products, not homes. Time shall tell.
Leadpile Lead Exchange is also a bid environment where we match the buyers and sellers of leads. Fortunately, we will not be matching up someone who lost their home to a buyer for $1.75.

Curious, what’s the next category LeadPile is looking at generating?  Well, folks here you have it!  Tax Debt Leads.  Very popular, and the demand is off the charts.  

The definition of this lead type is clearly back taxes. Consumers that did not file or owe a lot of many preferably in Federal taxes.  Why, the sudden demand?  For years, we have encounter consumers finding themselves in financial trouble, but the economy now is focused on people not paying taxes.  Believe me thousands of consumers owe money to the Federal system.

The downfall for thousands of people is that when you owe money to the Feds, the Federal government has the ability to start garnishment from your revenue or put liens on your property.  Not an experience you would like to encouter.  You will also be penalized and depending on the time frame owed or amount owed it can become a serious headache to deal with them, as you will be fined and some people even experience time in jail. OUCH!

LeadPile Lead Exchange will be introducing Tax Debt Lead.  We will connect the consumer that are in serious tax debt and need assistance talking to a specialist that can assist them.  Stay tune for a more firm ETA!