Newspaper Archive of
Coquille Valley Sentinel
Coquille, Oregon
September 30, 1971     Coquille Valley Sentinel
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September 30, 1971

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Page 4-B COQUI LLE VALLEY SENTINEL Thursday, Se Why Are Certain Returns Audited? With April 15 now a vague memory, your tax return filed, tax paid or refund received, you can forget income taxes for another year, unless . . . Unless your tax return is au- dited. "We realize the prospect of being audited is not one of a taxpayer's more pleasant th- oughts, but possibly a better understanding of what to ex- pect and how the audits are sel- ected will make them feel a bit more comfortable if their re- GARAGE SALE: Thurs., Sept. 30 9 a.m. - 5 p.m. Chil- drenPs clothing as well as nice selection adults! Wig- lets, records, furniture, ap- pliances, linens, dishes, heater, trash burner, many new items with slight de- fects. Come take a look! 644 E. llth, Coquille. turn is audited," states Ralph IRS which reads, "In exam- B. Short, District Director of ining your income tax returnfor Internal Revenue Service in the above year, we find we Oregon. need additional information. Now all taxpayers involvedin .". an andit end up paying Uncle Sam more money. In fact. approximately 37% of the re- turns examined are either ac- cepted as filed or end up with the government refunding mon- ey. What is the chance that your return will be audited? Short stated that it depends on the information that appears on your return. Each year about 17,000 tax returns are audited in Oregon. More than two- thirds of these are filed by in- dividuals while the remainder come primarily from corp- orations and other business en- terprises. A taxpayer first learns that his return is being audited when he receives a letter from the Actually the selection pro- cess begins long before this. Oregozians file approximately 750,000 tax returns between January 1 and April 15, mailing them direct to the IRS Wes- tern Service Center, Ogden, Utah. There, the returns undergo careful screening. First there is a check to make sure all the necessary information is shown on the return. Then the arithmetic is verified and the information is fed into the computer. Persons with re- funds are sent checks andthose owing additional tax receive bills. Up to this point, the gov- ernment has taken the taxpay- ers' report of his income at face value. Later on, how- ever, the IRS may want veri- fication of some of the items claimed on his return. Short stated the IRS cannon audit returns on a random sel- ection basis because it has neither sufficient manpower nor funds for such a broad audit program. However, "we ac- complish the selection of re- turns in abusiness like manner. First we determine what areas are most subject to error and misinterpretation. We feed these findings into the com- puter. It then identifies the returns which contain thesepo- tential problem areas. From these selected returns, a team of our most qualified auditors decides which returns require further consultation with the taxpayers." If the taxpayers bring in their receipts, cancelled checks and other verification needed to support the accuracy of their tax returns, the audit will normally be concluded in just one visit. Many times the taxpayer selected for audit makes the process more difficult by not keeping his appointment and failing to bring in verification of his deductions. Why? A common answer is that "many taxpayers either lose or throw away their receipts after filing their tax returns and without verification, we cannot allow their deductions or exemptions. It is important that taxpayers keep their tax records at least three years for use when and if the IRS audits their returns." Short listed the following areas as those most frequently considered in an audit and ex- plained the type of verification the IRS will accept. (1) Contributions: b. Statement from pastor or responsible church officer in- dicating the name and address of the contributor, the amountof the contribution, and the dateof payment. c. Payroll check stub showing a deduction from salary for con- tribution to recognized charit- able organizations. d. Receipts from qualified (2) Medical Expenses: a. Payroll check stub or payroll statement showing de- ductions from salary for me- dical insurance. b Cancelleochecks, receipts or statements from doctor, den- tist or hospital indicating med- ical expenses paid during the year. (3) Interest: a. Statement from the bank or other lending agency showing the amount of interestpaiddur- lag the year. b. A copy of the purchase or loan contract showing the am- ount of interest and dateofpay- merit of the interest. c. Receipts indicating the amount of interest paid. (Can- celled checks are not acceptable verification of payment of in- terest, because they do not show the amount ofpaymentthat constituted interest rather than principal.) (4) Taxes: a. Cancelled checks forpay- ment of real nd personal pro- perty taxes and State income the tax. some part b. For sales tax, if the table (2) The of average sales tax was not be used, receipts to substantiate with you the deduction. (3) c. Best evidence for gaso- received line tax is a receipt or credit come. (If card statement. Only the por- was under tion representing State gasoline time tax is deductible, does (5) Work Clothes or Unl- (4) your, forms: received a. A taxpayer who claims a of his deduction for work clothes or (5) Th el uniforms must be able to es- ied, tablish that his job is onewhich return specifically requires special In closirm apparel or equipment as a con- IRS has dition of employment and that insuring the work clothes or uniforms tax is are not adaptable to general or less. The continued usage so as to take on the place of ordinary clothing, number is Amounts paid can be verified pages by receipts or cancelled checks Treasury that are specifically for the Re, special clothes or uniforms. In the exemption, (I) The izen or SAVE-ON SENTRY First Of Week SPECIALS These Prices In This Column Are Effective Monday - Tuesday - Wednesday  . ALL MEAT OR ALL BEEF 12-oz. PKG. FRESH ARMOUR STAR LUNCHEON CHUBS (B%OLMoBIGN] ONPAK) Q VALENCIA IO00B CABBAGE BISOUICK MIX i MARY E LLES BREAD 22 I/2 OZ. LOAVES 4 88 d J WEET CANNED PEAS COTTAGE 15-OZ., CASE OF 24 $3.45 SLICED COTTAGE 15-OZ. BEETS CASE OF 2453.39 NEW HUNT'S 14-OZ. POTATOES CASE DE , $3.45 H OO)RijAisL E TT 15-OZ,, CASE OF 24 $5.89 DEL MONTE CRM OR WHL KERN CORN ,s o case OF 2,$5.69 COCKTAIL COTTAGE, FRUIT. ,5-OZ CASE OF 24 $5.79 PEAS D"MOT' O CASE OF 24 55.89 BEETS 0,A,,o,0'A'. SLICED. PICKLED, 5-oz CS OF 24 S5.79 CORN ,,,,,,E,s WHOLE KERNEL '2 OZ. CASE OF 24 $5.59 TOMATOES .o,,s,,o CASE OF 24 $5.89 FOR m HOOD RIVER, 28-OZ. DOLE CHUNK, 20.OZ.  ^, |  _ iN OWr CS. 24 APPLESAUCE ...... PINEAPPLE ....... u, c PINEAPPLE.. SALE ITEM PRICE MANDALAY CRUSHED, 16-OZ. DEL MONTE, 15-OZ., FRT. COCKTAIL ........... COTTAGE YELLOW (:lING PEACHES;;i ...... COTTAGE YELLOW CLING cs00,jSo 95 c $7.49 F R I cs',J3o 89 c $6.99 F R cs']So 89c $6.99 F R 28-0Z. PEACHES s,: ....... HOOD RIVER BARTLETT 00s00,Jo0089c $6.99 F R DOLE SLICED, 20-OZ. MANDALAY TIDBITS, 16-OZ. PINEAPPLE'Nw" cs.,j 2,79 c PINEAPPLE $9.39 F MANDALAY CHUNK, 16-OZ. MANDALAY SLICED, 16-OZ. PINEAPPLE ..... ... c00"1A89c..99 PINEAPPLE ......... PEARS,BO, cs. ,j 2o, ' -- .................. $10.4, F 89 c DOLE CRUSHED, 20-OZ. I IN OWN J PINEAPPLE U,CE CS.,$9.39 FO2'79 c COTTAGE 16-0Z., CASE OF 24 $3.89 CANNED PET FOOD:: ....... DOG OR CAT NEBERGALL'S FULLY COOKI:D SEMI-HAMS . SEMI-SWEET CHOCOLATE BONELESS BONELESS WHOLE NI:STI! E'$ SHANK HALF HALF HAM MORE[, 75':: 89* 87' LB. LB. LB. HAM SLICES ROUND JUICE STEAK I L__ 97t C,EDDAR BOLESS R, OR SIRLO T, AL R,NDS."OUR FAVO"TE BEEF ROAST L. $I.09 BANDON CHEESE MEDIUM SLICES $149 2# LOAF KRAF T "AME RIC AN CHEESE SLICES 'OAF $279 20 OFF REG. PRICE NE BE RGALLS 12-OZ I' #'% BOLOGNA, SALAMIs PKG " I' ALL BEEr BOLOOA " D Y SAUSAGE RINGS NEBE RGALLS 12-OZ. RINGS BOLOGNA, POLISH 69 METWURST, NEW ENGLAND BONELESS FULL CUT ROUND STEAK SIRLOIN TIP LB.$I .09 STEAK LB.$1.29 BONELESS BEEF STEW MEAT LB. 88 BREAKFAST STEAK B$1.49 CENTER CUT BEEF SHANK LB. 79 SIGMANS SLICED BACON . 59 S&J 5# BOX SKINLESS WIENERS$2.79 ARMOUR STAR CANNED HAMS cA.$2.79 We have Canned Bacon, Wilson's Corned Beef, And Turkey. These need NG REFRIGERATION! Check Our selection of TOP QUALITY KNIVES- for cutting up that DEER. 12-OZ. PKG. 6-OZ. TINS 2-LB. TIN CHIFFON ASSORTED PRINTS TOILET - TISSUE ................................ IVORY, KING SIZE LIQUID DETERGENT.I ......................... .. OZ. POWDERED COFFEE CREAMER COFFEE 16 MATE ............................................. oz. BEANS KIDNEY, LIM AS, GREAT NORTHERN ETC. R 30-OZ. PORK &