Healthcare Traveler - November 2008 - (Page 59)

Tax Facts What are IRS “soft notices”? Joseph Smith STATEMENT OF OWNERSHIP, MANAGEMENT, AND CIRCULATION (Requester Publications Only) (Required by 39 USC 3685) Publication Title: Healthcare Traveler Publication Number: 1077-5676 Filing Date: 9/28/08 Issue Frequency: Monthly Number of Issues Published Annually: 12 Annual Subscription Price (if any): $45.00 Complete Mailing Address of Known Ofﬁce of Publication: 131 West First Street, Duluth, St. Louis County, Minnesota 55802-2065 Contact Person: Madeleine Robins Telephone: (218) 740-6479 8. Complete Mailing Address of Headquarters or General Business Ofﬁce of Publisher: 6200 Canoga Avenue, 2nd Floor, Woodland Hills, CA 91367. 9. Full Names and Complete Mailing Addresses of Publisher: Cary Lederman, 106 Milford St., Suite 105, Salisbury, MD 21804 Editor In Chief: Patricia Stille Lederman, 106 Milford St., Suite 105, Salisbury, MD 21804 Managing Editor: Bobbi Harrison, 106 Milford St., Suite 105, Salisbury, MD 21804 10. This publication is owned by: Advanstar Communications Inc., 6200 Canoga Avenue, 2nd Floor, Woodland Hills, CA 91367. The sole shareholder of Advanstar Communications Inc. is: Advanstar, Inc., whose mailing address is 6200 Canoga Avenue, 2nd Floor, Woodland Hills, CA 91367. 11. Advanstar Communications Inc. is the Mortgagor under Credit Agreements dated May 31, 2007, with various lenders as named therein from time to time. The agent for the lenders is: Credit Suisse, Administrative Agent, Eleven Madison Avenue, New York, NY 10010. There are no Other Securities as of June, 2008. 12. Does Not Apply 13. Publication Title: Healthcare Traveler 14. Issue Date for Circulation Data Below: August 2008 15. Extent and Nature of Circulation 1. 2. 3. 4. 5. 6. 7. Average No. Copies Each Issue During Preceding 12 Months A. Total Number of Copies 41,855 No. Copies of Single Issue Published Nearest to Filing Date 41,875 ISSUES AND ANSWER S FOR TR AVELER S I n 2007, the Internal Revenue Service (IRS) started a pilot program that might seem a little strange to the average taxpayer. Here’s how it can affect travelers. What they mean Soft notices are designed to combat the tax gap, which is the amount of tax the IRS should collect versus the amount that is actually paid. Most of this gap is not due to excessive deductions being claimed, but rather concentrated in unreported income. If you receive a soft notice, you will be asked to look at your return for errors and file an appropriate amended return. But it won’t tell you that there is a discrepancy or calculate the amount due, so it’s important to recognize the document for what it is. How to spot them During this year, 31,000 of these forms will be sent out at various dates. You can identify them by a code— “CP2057”—at the top of the first significant page. Do not ignore a soft notice if you receive one. Should the IRS computers see the same pattern on your 2008 return, there is a greater chance of an audit. B. Legitimate Paid and/or Requested Distribution 1. Outside County Paid/Requested Mail Subscriptions Stated on PS Form 3541 2. In-County Paid/Requested Mail Subscriptions Stated on PS Form 3541 3. Sales Through Dealers and Carriers, Street Vendors, Counter Sales, and Other Paid or Requested Distribution Outside USPS 4. Requested Copies Distributed by Other Mail Classes Through the USPS C. Total Paid and/or Requested Circulation (Sum of 15b (1), (2), (3), and (4) 39,511 39,712 347 313 What’s in this for you? Most soft notices likely have been sent to independent contractors, where audit statistics consistently show red flags with unreported income. However, as the program expands, there is the additional possibility that taxpayers working in industries with an abundance of unreported reimbursements (such as the healthcare staffing sector) will receive these forms too. In either case, be ready to defend the income that you report. If it is too low, contact your tax professional to help you amend your return. HT Any tax advice contained is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions. Joseph Smith, RRT, EA, is an enrolled agent and owner of TravelTax LLC (TravelTax.com), based in Norfolk, Nebraska. November 2008 39,858 40,025 D. Non-requested Distribution 1. Outside County Non-requested Copies as Stated on PS Form 3541 2. In-County Non-requested Copies Stated on PS Form 3541 3. Non-requested Copies Distributed Through the USPS by Other Classes of Mail 4. Non-requested Copies Distributed Outside the Mail E. Total Non-requested Distribution (Sum of 15d (1), (2), (3) and (4)) 1,065 901 547 1,612 41,470 385 41,855 96.11% 640 1,541 41,566 309 41,875 96.29% F. Total Distribution (Sum of 15c and e) G. Copies not Distributed H. Total (Sum of 15f and g) I. Percent Paid and/or Requested Circulation 16. Publication for a Requester Publication is required. Will be printed in the November issue of this publication 17. Name and Title of Editor, Publishers, Business Manager, or Owner: Mark Rosen, Audience Development Director Healthcare Traveler 59 Date: September 13, 2008 I certify that the statements made by me above are correct and complete. http://www.TravelTax.com

Table of Contents Feed for the Digital Edition of Healthcare Traveler - November 2008

Healthcare Traveler - November 2008 Editor’s Desk Contents In a Flash Paws for Thought Field Notes You Said It Perks and Preferences A Latitude Adjustment Drug Update Clinical Tips Advice of Counsel Cityscape Advertiser’s Index Name It When In. . . It’s in the Bag Contest Rules Big Deals Tax Facts Going the Distance Allied Corner Classifieds Tales from the Road

Healthcare Traveler - November 2008

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