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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 12684
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I applied for a mortgage loan back in mid June. I had to do

Resolved Question:

I applied for a mortgage loan back in mid June. I had to do a amended tax return for the last two years because I had some foreign income to declare. I faxed the copies of the amended returns to the loan broker before I sent out to the IRS. This was in Mid June. In July, they wanted me to sign a T4506 form which is a request for tax transcripts. I did this on July 26. Over A week later, I went on the IRS web site to check the status of the amended return and they say they had no record of receiving it. I alerted the loan broker, but he said not to worry, that there is plenty of time for it to log by the closing in late October. I panicked and had another amended return sent out becuase I think the other one got lost. I am very worried now that the transript that they received was for my old return and I will be accused of fraud. He said that that it is not uncommon and that they continue to send out the request for the transcript until it arrives and not . I want to be sure on this because I feel that maybe I made a huge mistake and will be investigated for fraud. The IRS said it takes 10 to 12 weeks to process and be ready to send a transcript and this is very close to the closing date. I am very , very concerned and very anxious about the situation and wanted to find out what I can do and if I should have any concern about being investigated.
Submitted: 11 months ago.
Category: Tax
Expert:  Megan C replied 11 months ago.

MyVirtualCPA :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

MyVirtualCPA :

I'm sorry to hear of your situation. I know you must be frustrated. However, you have nothing to worry about

MyVirtualCPA :

You did nothing wrong. Banks are used to working with the IRS. Typically they don't even get the transcript until after the loan closes

MyVirtualCPA :

You will not be investigated for fraud based on this

Customer:

Well, I guess I am worried because I ended up sending out the amended return again almost 2 months after I initially sent it in Mid june. I did sign a T 4605 and it takes 10 days for them to process this. When they get back my original return, it will show the old numbers which were very low. I make most of my income overseas.

MyVirtualCPA :

I understand...but you really don't have anything to worry about ... it's quite common

Customer:

The loan broker said that they continue to send out the request for transcripts unitl they finally recieve the new ones

Customer:

Is this true?

MyVirtualCPA :

Yes, they will continue to request the transcript until they get the right ones in

Customer:

I called the IRS and they never reecorded my original amended returns, so I sent again two weeks ago and the closing date is late october. so, even if they do not have them by closing that is ok?

Customer:

They said things are backed up due to less workers with the cuts. She said it could take as long as 16 weeks to process

MyVirtualCPA :

You are perfectly fine. You should not worry

Customer:

Thanks. I have been worrying about this for over 3 weeks and could not sleep at times. I started reading about mortgae fraud and how serious it is

Customer:

I have a question about my foreign income. I have a small company in mexico where I have been paying myself dividends the last 2 years. Does the IRS need to see any documentation for this other than the declaration of the foreign income on the return?

Customer:

m

Customer:

hello?

MyVirtualCPA :

Thank you for your follow up. No, the IRS does not need to see documentation of this other than the income on your tax return

MyVirtualCPA :

Do you have any further questions?

Customer:

thank you

MyVirtualCPA :

You're welcome

Customer:

If I have further questions later, can I contact you directly?

MyVirtualCPA :

If you would please take a moment to rate my response as 'excellent' so that I may receive credit for assisting you today

MyVirtualCPA :

Yes, you may

Customer:

I am sorry, I have another question

MyVirtualCPA :

Okay

Customer:

It has to do with Capital gains on my property in Mexico

MyVirtualCPA :

okay

Customer:

I have a mexican corporation that I own 100% and this corporation owns a hotel property here in Mexico. I hoping to sell in the next few months and needed to find out the best way to sell. One accountant in the states told me that if the corporation sells the property here ( land contract)and pays capital gains, I will also be liable for capitals gains as an individual in the states - double taxation. He said if I do a stock sale of my shares of stock in the coporation instead, that I will only pay the captial gains on this once in mexico. Do you know anything about this?

MyVirtualCPA :

The stock sale would be the best way to go -- asset sales are hairy

Customer:

I see. So, it is true about the double taxation then?

MyVirtualCPA :

IF you sell your shares, then there's only capital gains

MyVirtualCPA :

yes,

MyVirtualCPA :

the corporation pays tax on the sale, then you pay tax again when you have dividends

Customer:

The new buyers fo the stock though would take the risk of any liabilities

MyVirtualCPA :

Yes

Customer:

How can I show the potential buyers that no liabilities exist?

MyVirtualCPA :

On your balance sheet

Customer:

I see. I know the closing process is much less expensive for them. For the land sale, it is over 5% to the notario

MyVirtualCPA :

Yes, I couldn't say much about the whole process other than how the tax comes out

Customer:

so, my taxes that I pay in mexico on the capital gains for the stock sale will be a credit for me when I repatriate the money to the US?

MyVirtualCPA :

Yes, they will

Customer:

So, I can wire this money to the state with no issues from the IRS?.

MyVirtualCPA :

Yes, you pay tax on the sale - not when you send the money

Customer:

Do I need to show proof to the IRS that I paid taxes on the proceeds in Mexico?

MyVirtualCPA :

No you do not need to show proof

Customer:

wow, I am surprised. I would think the IRS would be very suspicous of a large amount of money wired to a US account

MyVirtualCPA :

No - you won't have issues with that

MyVirtualCPA :

You will simply report the sale on your tax return in the year of the sale

Customer:

Thanks so much, you have been super helpful. You answers have been very clear and to the point

MyVirtualCPA :

I'm glad I could be of help

Customer:

If i have any more questios, I can contact you again directly

MyVirtualCPA :

Yes, you may

Customer:

Thanks again

Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 12684
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Megan C and 7 other Tax Specialists are ready to help you
Expert:  Megan C replied 11 months ago.
Our chat has ended, but you can still continue to ask me questions here until you are satisfied with your answer. Come back to this page to view our conversation and any other new information.

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Expert:  Megan C replied 11 months ago.
Thanks, XXXXX XXXXX your positive rating. Please come back and visit MyVirtualCPA for any of your tax, finance, or social security needs. It was a pleasure working with you today.
Customer: replied 11 months ago.

Hi, I had one other question about the IRS 4506 T form. I was reading that in order for the loan compay to get a transcript on my amended return, they need to check the box for account transcript. The form that they sent me to sign had a check mark only on the return transcript box.


Will they still get the correct information with the amended return?


 


thanks

Expert:  Megan C replied 11 months ago.
I would fill out a new form 4506-T and check the box "account transcript"

"Return transcript" only gives you your initial return. Thanks

Please take a moment to rate this response as "excellent" so that I may receive further credit for assisting you today.
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 12684
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Megan C and 7 other Tax Specialists are ready to help you

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