Join the 9 million people who found a smarter way to get Expert help

Recent Taxing Authorities questions

I have a client who recieved a letter from a State tax

I have a client who recieved a letter from a State tax authority showing they had a bill for 2012. They had left the state in 2012 and never filed a return for that year. I got a copy of their IRS transcripts, and discovered they had unreported 2012 federal income of about 30,000 dollars. This was not intentional on their part. They apparently never got a 1099 that the IRS got. Now, the state is threatening levy, no return was filed, and State has the the 1099 income record. And it file the state return, I have to attach federal return. I have done the correct state return, and amended the federal returnn to do so, and told the client about the debt they now have. The returns have not been filed. The client is unhappy and does not think they owe the money. They do not think they got the 1099 income reported. This seems rather unlikely. I think they would like to avoid amending their 2012 federal return. I just assumed amending would be correct and the safest thing for my client. I suppose they could pay the state amount if it is calculated for them without filing a return (which is inflated as it was not all state income) and cross their fingers that the IRS never notices. Maybe I am too honest, but I just assumed they would amend and pay the correct federal figure. If they do not, what are the likely consequences? The IRS transcripts show they made more money then they reported. IRS has done NOTHING about it .... YET. Have they already gotten away with it? Or is IRS likely to find out. If found out at a later date? Are extra penalties for fraud possible? As the income was not reported, there is no statute of limitations running, so the IRS could find out about this at any time and come after them, correct? Am I being too hard on my client, in wanting ot amend the federal return? Or is this very much in their best interest, when is all is considered?

Read more

Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,732 satisfied customers
I am and EA doing the final return of an S Corp. The owner

I am and EA doing the final return of an S Corp. The owner basically shut down the whole thing. He did not do anything official to end it. but it is no longer operating. I did the 1120S for 2015 and checked the box final return. In the CA corp return, I got an error mesage and I put down the corporation dissolved as of 12/31/15. Error message disappeared. The client will have to pay his S corp fee for 2015. Is this all I need to do? The client no longer plans to do any Corporate work and has not done any in 2016. Am I missing anything here? Is there some other STEP client must do to kill corp as of 12/31/15. It was a one man corp and he was beyond retirement age. Tax wise, is there any problems with my handling?

Read more

Dr. Fiona Chen

President

Ph.D.

556 satisfied customers
FTB administered a bank levy without notifying me. I

FTB administered a bank levy without notifying me. I cooperated with the underwriter assigned to my case and I told her to hold off on levy and garnishment because the IRS was almost done investigating a fraudulent 1099 issued to me for tax year 2007. When IRS made the final decision in my favor, removing $52000.00 including penalties and fees. FTB is trying to collect $ 18000.00 for the same tax year 2007. The tax owed was from that fraud 1099. Even after I told them that IRS finished their investigation in my favor, FTB still continued to garnish my income. I sent the underwriter the letter from IRS which FTB asked me to procure the following day IRS made their decision. There was ample time to notify my employer to release the garnishment hold on my income. The underwriter said that it was too late plus I need to pay $1100 for tax due from another year. I did not understand what she was referring to but pleaded with her to reasses my tax liability because I'm very sure that I do not owe them back taxes anymore. The underwriter told me that it will take them 90 days to process the reassessment. How fair is that? It only took her 1 day to decide to garnish my income and hurriedly before IRS can finalize the decision.JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: so far the garnishment started July first pay period and is still ongoing for $ 378 per pay period. These amount has caused me a lot of hardship including late payment to my condo lease and other bills.

Read more

Dr. Fiona Chen

President

Ph.D.

556 satisfied customers
I had my card in 2007 from lottery. I was married with non

Hi, I had my green card in 2007 from lottery. I was married with non resident person in 8/2009 until 9/2013. My wife never had any US ID, She never lived in US just got 10 years touristic visa to visit me I was living both Turkey and US until 2012 and she doesn't wanna fill the taxes with me so I asked people how to do taxes they've said single because she doesn't have any paper work about US even not living here and she refuse to but her name on the papers too at the end we got divorced in 2013 so I am officially single now. Because I love US so she decided to stay and work in Turkey. so My question is do I need to fix something or is it okay? Because I also applied for N400 and they will probably call me son for interview. Do you think do I need to fix these papers because I sent all my papers works like 5 years to citizenship dept. already.

Read more

Dr. Fiona Chen

President

Ph.D.

556 satisfied customers
My wife is in a Master's program Oregon State University.

My wife is in a Master's program Oregon State University. It's an online masters in Radiation Health Physics. She was working for the Fox Chase Cancer Center in Philadelphia, when she was told of a scholarship fund for students in post-secondary education.She had been told of the scholarship by her boss and was actually under the impression that it was for $2000. She applied for the scholarship and got it. We were both surprised when one paycheck, she received the 'scholarship' as income.As it was paid in income, it was subject to Federal, State and city (Philly 5%) taxes. Ultimately she received extra income on that paycheck of $2700.Less than a year later, she left the job at Fox Chase, and part of the agreement said that if she left in less than a year she would be required to return all monies. We recently received a letter from them saying that we owed $3600. Because that is how much it cost them.I want to argue that we never received the $3600, we only received at most $2700. And furthermore, because it was paid in income, my wives gross income put her just outside of a range where she could deduct her education expense ($10,000 which would have given us roughly $3,000 of money back!)I'm from Canada, so I don't know all the rules around scholarships here. But from what I can see on the IRS website, the 'scholarship' should have been given tax free and not as part of income.So while I agree we should pay back some money, I want to pay back the net benefit we received as opposed to the gross amount it cost them. Is that reasonable?

Read more

Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,018 satisfied customers
I filed for taxes using a software and the money was never

I filed for taxes using a software and the money was never taken out of my bank account and when I realized it I don't have the money to cover it now. I have yet to hear anything from the irs though and don't know what to do.

Read more

Dr. Fiona Chen

President

Ph.D.

556 satisfied customers
I have/had a non-qualified annuity. This annuity is

Hello. I have/had a non-qualified annuity. This annuity is collateral for a loan. In 2013, we filed Chapter 7 bankruptcy. Since then, the bank has been taking money out of the annuity to make the payments on the loan. This has caused us a substantial tax event every year since then. The IRS has a tax lien against us because of this. Our CPA says we should just do an Offer-in-Compromise and offer the IRS 20 cents on the dollar to settle. We are not willing to do this because we bankrupted and the annuity should belong to the bank now. He told us to hire a tax attorney, which is ridiculous because the answer seems like it should be simple...we bankrupted on a loan that the bank had collateral for...we should be done with both the loan and the annuity...in my opinion. How can we stop the tax events? Shouldn't the annuity be out of our name? Please help! Thank you, ***** *****JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: Not that I know of. The first year this happened (2013) this event more than doubled our income!!! By the way, we had to file bankruptcy because our financial advisor stole all of our money.

Read more

Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,732 satisfied customers
IRS and state Taxes: Maryland, New York, Colorado I need to

IRS and state Taxes: Maryland, New York, Colorado I need to go to the IRS first thing in the morning.The IRS just leaned me and took 20% of my social Security check. I need to find out what forms I need to file to let them know that I do not have any money or assets. I do not own a home and am presently renting but can not even pay my rent because they took the cash from my social security payment.Where is the nearest IRS office in Tucson, Arizona near my zipcode of 85749 or 85750.Next since they say I owe $31,000 what Fresh Start Program can I apply for and what forms and instructions do I complete?What financial statement do I take to them to show them my financial status so I can present to them my expenses and how they just wiped me out?I am not working and do not have anything except my social security at this time and with the liens and the fact that I was not able to report to them when I lived in Maryland they reversed my previous return and hurridedly closed an audit with no meetings with me and has caused extreme hardship.I have creditors constantly calling me, and liens and as I have undergone surgeries of my eyes, Retinal Surgery first and in 2015 2 catarac surgeries in my right and left eyes.When they called me in for the audit I was recovering from knee replacement surgery and physical surgery and could not walk or drive.I asked the agent to leave the audit open until I could gather receipts from 2008, 2009 and 2010 the years that they reversed my expenses from my schedule C.I have lost everything and have notices from states as well as interest that is getting to be higher than the amount that they say I owe.I am 64 years old and devistated.I was not able to file for 2013, 2014 and 2015 as I could not see and am still recovering. I need an answer as soon as possible as the very complex statements can be filed for 2013, 2014 and 2015 tomorrow, and then I can go back to do a 1040X for the years that they erased my expenses,I do not have money for an accountant or attorney so please do not reply asking me to pay you to answer these questions as I do not have the money.I just need to know where is the nearest IRS office and what is the office and forms and how do I file an offer in compromise and what forms and instructions do I use and what can I do for me owing over $30,000.The lien was filed in New York City borough of queens but I worked and lived in Silver Spring Maryland at the time and Maryland has liened me and put me in collections.Please expert only in federal and state taxes for Maryland , New York City and now live in Arizona although I have not worked in Arizona at all and just moved here as I could not afford to live elsewhere. I have not worked since I had my last eye surgeries in July and August of 2015.My 2008 tax boxes were inadverdtantly tossed by the maintenance workers assisting my physical therapist so that I would not hurt myself as my home was my office.

Read more

PDtax

Owner

Master's Degree

6,990 satisfied customers
I am retiring and will be living with my daughter in her

I am retiring and will be living with my daughter in her home in AR. I wil not be her dependent at this time though eventually she may become my caregiver. I want to pay half of the household expenses. Should we open a household account and both contribute to that account? Does it need to be specified - named a household account and both of us be signers? Will the amount that I contribute be income for her? She will still claim taxes & interest on her mortgage.JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: She just this month paid home insurances for the coming year. I want to reimburse her for my half.

Read more

Barbara

Enrolled Agent, Paralegal

5,140 satisfied customers
View more tax questions
In The News