The past few years here in Washington State, homeowners were able to deduct sales tax on building related items (as well as cars, rv's, etc...), for example, we did a major landscaping project. We had to account for the total cost (determined by receipts) and then the total sales tax (determined by receipts). However our project was a DIY project and we paid for everything ourselves rather than paying a GC. This benefit ended in 2007 for us in Washington so this is the last tax year we'll be able to write off our many upgrades, renovations we've made, etc... I wonder if your state had something similar if you couldn't write off items you've bought for your new construction that you didn't run through your GC. Just a thought and of course it depends on where you live.

I know from expereience with un-filed tax returns, if you come forward it's better. Get your records together, file the back taxes. You can request they waive the penalties and interest, because of personal problems like health or frequent job changes or moving around or inability to obtain records, etc. And when you know the sum total of what you owe, the IRS will accept monthly partial payments of whatever you can pay. When you file, pay as much as you can and include a letter showing how you plan to pay the balance. I owed about $4000 and they let me pay $400 a month out of my checking account.

" you don't need to get them into presentable order unless you are audited." You are correct. For annual returns that's something accountants tell stories about over drinks after work. "What's the biggest mess anyone dumped on your desk today?" Accountants are accustomed to seeing records in shoe boxes. That's how i did it every year til he so kindly pointed out what my time was worth compared to his. January first my records might be anywhere between desk,shoe boxes,glove compartment to bedside stand. Before I turn them over to the accountant I've organized them in files and transfered #s to spread sheets. In the case of say a rent house,I give him a single amount for repair and maintainance,depreciable purchases for each period,travel milage and so forth for items I'm certain go in that catagory. If I'm uncertain where the expense/income fit's,the actual reciept is attached to a sheet of paper with hand writen note(s) if nessary. Very few and sometimes no reciepts,checks and other documents ever go to accountant's office. Tax preparation fee dropped a bunch after I started that. That's not an audit but sure is good rehearsel in case one ever must be dealt with.

chloecat, OP posts a link from the Intuit website. Does that mean that's how she's preparing the return? Maybe, maybe not. That source is as likely to pop up (or more likely even) as any other from a key word search. These are very basic questions, so much so that many tax lawyers (and many CPAs) would have to look up to answer. This CPA (moi!) would need to look it up because the numbers and amounts matter and change from year to year. I never spent much time on individual returns anyhow but guessing or assuming are never a good idea and I try not to answer questions when I don't have all the facts. As to whether this parent provided more than half the support, that depends on what was done with the money the kids earned, how much the parent provided, whether the person is divorced and many have a dependent sharing agreement embedded in that, yada yada. (Sorry Rose, you too have jumped to a conclusion that may or may not be correct). You all should be sure your returns are prepared in compliance with the law to reflect the minimum tax liability you legally owe. Not to avoid audits.