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Recent tax questions

Getting a second opinion on this question, as I have

Getting a second opinion on this question, as I have received conflicting information.I have a federal tax lien, and I am about to set up payment arrangements with the IRS. The tax lien is keeping me from getting additional capital for my business, so in order to run my business, if I do not get the lien released, it will cause me some difficulty obviously. Am I better to set up thepayment arrangements myself first, then file to get the lien released, or request the lien be released while I negotiate the payment terms at the same time. The amount of the lien is $17,000from tax year 2014. I would like the payments to be monthly, set for 72 months to keep the payment low, but I can pay double payments. Thanks for your response

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

 
16,384 satisfied customers
I live in pa. Commercial cleaning 15 yrs s corp . never done

I live in pa. Commercial cleaning 15 yrs s corp . never done sales tax . didn't know had to , my account didn't know .do l ? And if so should I start now? Need help please .

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Lev

Retired

Bachelor's Degree Equivalent

 
24,192 satisfied customers
This is in regards to California tax requirements LLC.

This is in regards ***** ***** tax requirements for an LLC.Background Info:-single member LLC-formed 01/18/2016-elected to be treated as an s corp for tax purposes-paid $800 in March using form 3522-I will not exceed $250,000 in gross income for 2016 with my LLCHere's where I'm confused:What is the deal with form 568 for first year LLCs? I've looked at the form, and I see areas asking about total income, etc. If this is my first year, how do I know what my income will be? Is that because they are asking about last year, which would make all my information $0?What is the deadline for form 568? And is it a form that requires me to pay a tax/fee?As mentioned above, I paid $800 LLC tax using form 3522 before the 15th day of the 4th month.I want to make sure I file form 568 correctly, and make payments that are required.Help!

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

 
16,384 satisfied customers
I have been receiving SSDI benefits since late 2005. I was

I have been receiving SSDI benefits since late 2005. I was 51 years old when a determination of full disability was made, two years after I first applied for benefits. I turned 59 1/2 years old in March 2014, but have had to draw on my retirement annuity since 2006 to supplement my SSDI.I a penalty for early withdrawal was deducted by the firm managing the retirement fund. That penalty was initially 10% of each withdrawal. I also paid federal and state income taxes on the withdrawals. I often received back most of those taxes paid because of my low adjusted income and associated tax rate.As my age approached 59 1/2 the penalty paid to the fund management firm was reduced by 1% with each passing year. Again, I withheld amounts for Federal and State taxes on each withdrawal, though after the initial years I withheld a smaller % since most of it was coming back to me as a refund. I used tax software (typically TurboTax or TaxCut) to determine my taxes, always indicating that I was disabled and receiving SSDI as my primary income.In 2011 I moved from Minnesota to Wisconsin but the tax implications were minimal other than a loss of certain tax credits that had been available in Minnesota. (Homestead Property tax rebate/refund due to significantly lower income limits in Wisconsin.)In 2012 I purchased a home and withdrew a larger than typical amount from my retirement account to apply toward the down payment on the purchase. I also applied some funds from my IRA toward necessary repairs and energy-saving improvements. Again, I used TurboTax to prepare my tax return, and after applying various credits for energy saving improvements, and deductions for mortgage, property taxes and real-estate transaction fees from the purchase of the house. I paid several hundred dollars in federal and state taxes due.Now in 2016 I have received a letter from the State of Wisconsin Dept of Revenue saying that I owe a 10% federal tax penalty (and an additional 1/3 of the Federal amount for state tax penalties) on the early withdrawals from my IRA in 2012. This surprised me because I hadn't had to pay any additional penalties in previous years (to my knowledge) and I had paid the 2% penalty deducted at time of withdrawal by the fund management firm. I assumed that this was due to my disabled status.I am receiving conflicting information as to whether my disability status eliminates the tax penalty on early withdrawals. The fund management firm tells me that I may have to do so, though they aren't privy to the specifics of my tax return. If so, I don't understand why this liability only arose in my 2012 tax year. I also made a larger lump some withdrawal in 2008 to purchase a used vehicle, and no additional tax penalty was assessed (though I did pay a 6% early withdrawal penalty was deducted from the withdrawal by the fund management firm.)I was/am still confused about this early withdrawal penalty deducted by the fund management firm. I assumed this was related to any federal/state tax obligations, particularly since the tax preparation software didn't indicate any taxes due as an additional tax penalty.Recap: Key Questions1) Does my (full) disability status eliminate my liability for the additional tax penalty on early withdrawals?2) Am I likely to be liable for similar taxes in prior and subsequent tax years until I turned 59 1/2?The amount that I owe for the early withdrawal tax penalty, the late payment penalty and the associated interest is roughly 3x the amount of my total tax liability in any other year since my disability eligibility was determined. How many other "shoes" are likely to drop?

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Lev

Retired

Bachelor's Degree Equivalent

 
24,192 satisfied customers
In what country can the citizens have foreign bank accounts

in what country can the citizens have foreign bank accounts and not have to report it to their country or pay taxes on it, like it used to be with swiss bank accounts. Is there such a country anymore? If so, I want to become a citizen there. If there are several countries that have safe banks and do not require their citizens to report their foriegn bank accounts, (not income, just large bank accounts), or just one, could you give me the list. There is no infomation on it online.....what a surprise..

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Robin D.

Vocational, Technical or Trade School

 
20,340 satisfied customers
Does an officer compensation of a NYS C Corp has to pay NYS

does an officer compensation of a NYS C Corp has to pay NYS and NYC tax if he filed a federal tax return and has a 1042 with a 30 percent of taxes withheld?

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Lev

Retired

Bachelor's Degree Equivalent

 
24,192 satisfied customers
I was the administrator of my neighbor's probate when he

I was the administrator of my neighbor's probate when he passed away. According to the laws of California I was paid accordingly. I declared this "income" on my Form 1040 tax return on line 21, other income and stated that I was an Estate Administer. Well, I was quite surprised to receive a letter from the IRS suggesting rather strongly that I owe a self =employment tax which would amount to over $2000. I do not consider myself self-employed and I am not in any business. I was asked to be the administrator and was appointed by the court. I say again, I am not in any business, I was asked to do this. I cannot fathom that all those who are administers/executps in probate are liable for the self-employment tax. What do you think. walt blenkush

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

 
16,384 satisfied customers
My wife out of our house in Missouri, but her company is in

My wife out of our house in Missouri, but her company is in NY. The company refuses to set up a taxing authority in Missouri and has her state taxes withheld in Illinois. We currently are paying out of pocket, on a quarterly basis, our estimated Missouri tax withholding. In the past, the company has written a letter to the state of Illinois indicating my wife doesn't work in that state and we should get a refund on the taxes withheld from Illinois and we have. However, now, they refuse to write the letter because they say it is putting them at risk for an audit so they will not communicate any status on my wife's location. Yet, Illinois taxes are currently being withheld (and we are paying Missouri). What is our best course of action to obtain our money back from Illinois when the company will not stop our withholding and will not indicate in any way that she doesn't work there?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

 
16,384 satisfied customers
Forest Park Ohio said I owe city tax from 1997 to the year

Forest Park Ohio said I owe city tax from 1997 to the year 2000. Is there a statue of limitation since I cannot find cancelled checks?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

 
16,384 satisfied customers
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