Why does irs ask for occupation

You should have all the proper documentation as if it were a business, and prove that it made a profit for three out of five years. Learn what the IRS is looking for during an audit, the steps you should take to prepare for an IRS audit, and when it's best to get expert help. Find out how long the IRS has to audit your return, when most audits normally start, and how to know if you've been selected for audit.

The IRS grants four types of penalty relief, but many taxpayers don't ever ask. Learn how to request penalty abatement from the IRS. Separate fact from fiction when it comes to IRS audits. Learn what causes tax audits, what happens during an audit, and what to do if you get an IRS letter. How long you can expect your IRS audit to last depends on the type of audit and the scope. Learn the three main benefits of engaging a power of attorney to research your IRS account and resolve your tax problems.

Do you need to call the IRS? Gig workers are also small business owners — which means extra tax rules and potentially IRS scrutiny. Nobody wants a letter from the IRS -- but you shouldn't ignore one. Learn about the consequences you can face if you lie on your tax return. Find out why you may need them, where to get them, and how to decode them. Requesting your tax transcripts is the best way to research your IRS tax account.

You can also authorize your tax pro to communicate with the IRS for you. The Statutory Notice of Deficiency is part of a series of notices sent by the IRS to propose additional tax, penalties and interest.

Author: tmeri. Number: of Report Post Recommend it! This is a question I've always been curious about. Why does the IRS ask for your occupation? Are there some occupations where the rules are different? If you are FIREd but not technically retired quite before official retirement age , what do you put? Author: Author: brewer I've always been tempted to put down something like "rabble-rouser" or "junkie", but I usually stick with somthing pretty generic "researcher" or "professional".

Here is a list of these items and the reason the IRS looks at them:. Automobile Expenses. There are specific record-keeping requirements of which many taxpayers are unaware and often fail to follow. The ability to claim a standard mileage allowance tempts many the majority of taxpayers to pull a number of out thin air rather than keep clipboards in their cars and meticulously track changes in their odometer reading.

The prevalence of inadequate record-keeping and overestimation makes this category ripe with low-hanging fruit. Meals and Entertainment. Once again the record-keeping requirements promote overestimation and inadequate record-keeping.

Mortgage Interest. Non-cash Charitable Contributions. Travel Expenses. The temptation exists to deduct travel for vacations, weddings, and other non-deductible purposes. And again, there are specific record-keeping requirements. Office Expenses. The IRS does not actually provide any instructions for what to enter as your occupation on your federal tax return this appears at the bottom of the return to the right of the signature lines.

Enter what best reflects your current occupation. To enter or modify either the taxpayer's occupation or spouse's occupation in your TaxAct return:. Business Taxes Professional Taxes. Sign In.