in this issue…
Putting a Face on Real Estate since 1995™
• JB Goodwin, REALTORS Annual Awards Banquet • WC REALTORS Super Bowl of Builders • ABoR TREPAC Chili Cook-Off • and much, much more!
Associates in Progress
Over 200 Quick Move-In Homes
page 25 TM
Inside Back Cover
MARCH 2014 • VOLUME 18 • ISSUE 11
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"Tax Talk"- how you case of an IRS audit By Riki Markowitz
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ax time can be nerve wracking for anyone—especially in this current economic climate. Folks are looking for ways to pinch pennies anywhere they can: reducing costs on extras like cable television and recreational activities, or even more drastic cuts like turning the thermostat down a degree a two, even during this slightly colder than normal Austin winter. One place you should absolutely never cut corners, not for
any reason, is on your taxes. “Ninety percent of avoiding an audit, surviving an audit, and not having a problem with the IRS – is to assume that you’re going to be audited every single year,” suggests Sandy Botkin, CPA and author of "Lower Your Taxes: Big Time.” The good news is that the taxman only audits about 1 percent of individual returns. On the other hand, professionals in the real estate industry happen to hit a lot of the targets that can raise a red flag at the auditor’s office. “In 2012, one out of
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can save yourself in every three people audited earned $50,000 or less,” says Eddie Pietro, a Dallas-based office manager for H&R Block. Considering that in the past year, the average real estate sales rep in Austin earned $40,000 and more experienced agents earned, on average $68,000, a good percentage of the industry are reporting an income
that the IRS examines more than any other earnings bracket. According to the IRS, selecting a return for examination does not always mean you made a mistake, misreported your income, or over estimated your exemptions. A return can be chosen if a filer’s W-2 or 1099 does not match the information provided by someone the taxpayer did business with. In other words, if the amount you claim in commissions does not match the amount your employer is claiming they paid you, the IRS may send you a letter requesting an examination. Incidentally, according to Pietro, a letter of audit can arrive up to seven years after you file. So if you receive a notification in 2014, it’s likely the IRS will be interested in returns anywhere from 2010 to 2012, or earlier. For that reason, says Botkin, also the founder of Taxbot, an application that helps 1099 workers stay organized
Front Page: Continued on page 26
Upcoming Events Wednesday, March 19 HBA 2014 Williamson County Chapter John Gavurnik Open Golf Tournament Forest Creek Golf Club - 11:30 a.m. AYREP Happy Hour Abel's North - 5:30 to 7:30 p.m. Thursday, March 20 WC REALTORS Bowling for TREPAC Mel's Lonestar Lanes - 3 to 6 p.m. Milestone Community Builders Road to Wealth Preston Village - 4 p.m.
Thursday, March 27 WCR FREE Member Mixer Sherlock's Pub - 5 to 7 p.m. Pure Gold Realty Launch Party The Belmont - 6 p.m. Saturday, April 5 HBA MAX Awards & Gala Hyatt Regency Town Lake - 5 to 9 p.m. Thursday, April 10 Williamson County Assoc. of REALTORS West-Side Story Bus Tour WC Office - 8:30 a.m.
Wednesday, April 16 CRS Bi-Monthly Meeting Westwood Country Club 11:30 a.m. to 1 p.m. Saturday, April 19 Sky Realty Georgetown Office Grand Opening 714 S Austin Ave Ste #201 - 4 to 7 p.m. Saturday April 26 - Sunday, May 11 HBA Parade of Homes Tierra Vista - 11 a.m. to 9 p.m. More at www.myRealtyLine.com