Have a Tax Question? Ask a Tax Expert
Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
I'm sorry to hear of your situation. I know you must be frustrated. However, you have nothing to worry about
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
You will not be investigated for fraud based on this
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.
I understand...but you really don't have anything to worry about ... it's quite common
The loan broker said that they continue to send out the request for transcripts unitl they finally recieve the new ones
Is this true?
Yes, they will continue to request the transcript until they get the right ones in
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?
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
You are perfectly fine. You should not worry
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
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?
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
Do you have any further questions?
If I have further questions later, can I contact you directly?
If you would please take a moment to rate my response as 'excellent' so that I may receive credit for assisting you today
Yes, you may
I am sorry, I have another question
It has to do with Capital gains on my property in Mexico
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?
The stock sale would be the best way to go -- asset sales are hairy
I see. So, it is true about the double taxation then?
IF you sell your shares, then there's only capital gains
the corporation pays tax on the sale, then you pay tax again when you have dividends
The new buyers fo the stock though would take the risk of any liabilities
How can I show the potential buyers that no liabilities exist?
On your balance sheet
I see. I know the closing process is much less expensive for them. For the land sale, it is over 5% to the notario
Yes, I couldn't say much about the whole process other than how the tax comes out
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?
Yes, they will
So, I can wire this money to the state with no issues from the IRS?.
Yes, you pay tax on the sale - not when you send the money
Do I need to show proof to the IRS that I paid taxes on the proceeds in Mexico?
No you do not need to show proof
wow, I am surprised. I would think the IRS would be very suspicous of a large amount of money wired to a US account
No - you won't have issues with that
You will simply report the sale on your tax return in the year of the sale
Thanks so much, you have been super helpful. You answers have been very clear and to the point
I'm glad I could be of help
If i have any more questios, I can contact you again directly
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?