I have a notice of deficiency. I paid too little, I didn't
I have a notice of deficiency. I paid too littleJA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I didn't pay right away and now there is a fee for lateness and also a fee for gross underpayment.JA: Is there anything else the Accountant should be aware of?Customer: can a professional help me reduce the cost of this?
Is there a statute of limitations on paroll taxes. company
is there a statute of limitations on paroll taxes . company went bankrupt in 2005JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: company and shareholder went bankrupt in 2005 irs tried to collect from shareholder but there was just no money is there a statute of limitationsJA: Is there anything else the Accountant should be aware of?Customer: I don't think so
JD, MBA, CFP, CRPS
I have a question regarding distributions from a company to
I have a question regarding distributions from a company to the two ownersMy scenario is my partner and I own a company (S-Corp) and to be a minority owned company we agreed back in 2001 to divide the company 48>52% with a verbal agreement that any dividends we take would be 50/50 not understanding the tax laws at that time.Now in 2016 the company is making money and as such paying taxes, our CPA says that any distributions must be 48/52% which they have been these past years that is what ever amount my partner took to pay his taxes I took 48% of that amount.I understand that my partner is paying 52% in taxes that generate from the company but it seems unfair that the distributions are based on that fact.I realize it is not relevant as to why we take distributions but for the past 5 + years we have taken distribution solely for the purpose of paying taxes for our individual tax bills. My partner has been paid 52% and myself 48% so if he is tax bill was 52K I would get 48K.I addition we are now required to pay each qtr and again when the time to pay Uncle Sam $$ we take a distribution him 52% me 48/% paid in a check to each other we then are supposed to cut a check to Uncle Sam for that same amount.This also brings up an issue, if for instance we decide that my partner is going to pay Uncle Sam $52K I will cut him a check for that amount and again myself a check for $48K then he only sends 25K towards his tax bill and I send the whole $48K..When time comes to pay the tax bill in September my Tax bill is 10K where as his will be $??? But as he did not pay in the full $52K he will need another distribution and again he will get 52% and I will take 48% of that amount.I realize that distribution has nothing to do with paying taxes but that is the scenario we use to justify taking distributions.Using that model of taking distributions to pay taxes what is the company had loss and found that we did not owe tax but took a distribution anyway no matter how small would a 52/48% apply.What if we never took distributions how does the 48/52% work then (We both have the same salary amount)Would be be fair if I took a salary increase to cover the difference in the distribution amounts or is the 48/52 correctThanks
Sr Financial & Tax Consultant
This question is for Lane. I have a divorcee who paid me to
This question is for Lane.I have a divorcee who paid me to do some consulitng. I am an EA. I recommened she wait and do nothing about an old payroll tax debt incurred when she was married. Her husband was assigned debt by divorce decress, but has not paid yet. The IRS SOL is 2018, and I recommended she do nothing. If the IRS contacts her, a response will be needed. She signed no 2848 POA for me. I do not know that she will ever further employ me. She is hoping IRS will not remember her or her husband will pay.. Her husband was in CNC status.Her husband has contacted me to do his 2014 and 15 taxes. I see no conflict of interest here at this point. Do you see any problem?It is possible I will represent her husband later. He plans to pay off the debt to IRS which would free up his ex. So there is no confliict of interest. Do you agree?
JD, MBA, CFP, CRPS
How do I find out what tax bracket im in? I am a Lularoe
How do I find out what tax bracket im in?JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I am a Lularoe consultant and would like to know how much I should be putting away for income taxes?JA: Is there anything else the Accountant should be aware of?Customer: I dont know. I am new to this so not sure what other information is important or relavant
I was conducting my business as a sole proprietor for 2014,
I was conducting my business as a sole proprietor for 2014, but decided to form an LLC in 2015. For IRS though I understand LLC is a disregarded entity. My question are:(1) whether on schedule C I should leave it blank of put my LLC, under "Business name, if no separate business and, leave blank"(2) Enter EIN of my LLC, or keep it blank so IRS can go by my social security, since I've received 1099-K under my social security.(3) Should I consider this as a new business for the purposes of reporting my beginning inventory?
I would like to ask this question anonymously please. My dad
Hello:I would like to ask this question anonymously please.My dad runs a small business and I am one of his employees. I have been working for him going on 4 years, since I graduated from college.I have never filed for taxes, and I am paid under the table. I did not think much about taxes until recently as I am in the process of going back to school, and would like to sign up for Financial Aid. I make $600 a week working for my dad and the person at the Financial Aid office said I would need to file for taxes as I am above the amount required to file.My question is, what do I do? My dad has never given me any kind of tax related form. Would I be able to submit taxes as self-employed? I have done some research online and it sounds like both my dad, myself, and the other employees he was working for him could be in trouble. How do we go about resolving this issue?Thank you for your time.
In the State of CA, Is an in home companion eligible for a
In the State of CA, Is an in home companion eligible for a 1099?JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: The person would be paid direct by my Mom and would not be from an agency.JA: When we are ready I'll take you to the appropriate web page.Customer: okJA: Is there anything else the Accountant should be aware of?Customer: I don't think so. It just a companion for my Mom while I am at work during the week (she is 83).
I've been working outside the U.S. for several years, for a
I've been working outside the U.S. for several years, for a foreign entity. As a result, I'm not able to contribute to Social Security. I have income in the U.S. from various residential rental properties, but that is also excluded from Social Security, as that is not my profession. Can I ignore the exemption (since it's meant to help me from having to pay) and pay social security tax anyway? If not, is there some construct I can make to be able to contribute into Social Security?