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I am helping a friend to obtain a EIN number to his

Hi,I am helping a friend to obtain a EIN number to his corporation. My friend is the CEO but he is a foreign person without a SSN. Therefore, we wont be able to apply for the EIN online.Form reading several posts online, I understand that my foreign will have to fill out Form SS4 and designate a lawyer or a CPA (or a business lawyer" ) as a "Third Party Designee".My question is how the lawyer or CPA will fill out the POA (Form 2848) if my foreign doesn't have a SSN?Could you please help.Thanks!

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Dr. Fiona Chen

President

Ph.D.

282 satisfied customers
If I do some work for a foreign country (Sweden) and get an

Hi thereJA: Hello. What seems to be the problem?Customer: If I do some work for a foreign country (Sweden) and get an income from them, how do I declare it to the IRS?JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I do not have my own business, or anything like that.JA: Is there anything else important you think the Accountant should know?Customer: not that i can think of

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Dr. Fiona Chen

President

Ph.D.

282 satisfied customers
Tax Experts One of my client's is planning to use foreign

Tax ExpertsOne of my client's is planning to use foreign web designers for his business. His business is S-Corp.1. Is he required to do tax withholding on US based income paid to foreigners (person or corporation).2. Do they need to have US federal ID?3. What forms need to be filed and how often?4. Is foreign person required to file US tax return?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,252 satisfied customers
This one is a little odd. Figuring insolvency to offset

This one is a little odd. Figuring insolvency to offset canceled debt. There is a property for which I received a 1099-A, but not a 1099-C. Since the debt wasn't canceled but the 1099-A is a disposition of the asset, can I claim the liability on the insolvency worksheet and leave off the asset? The 1099-A is dated before the unrelated canceled debt that I am trying to offset.JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: No, it's an interpretation thing. I have a canceled debt on a 1099-C dated in November. In figuring assets and liabilities, I have a property with a 1099-A in May. Since that May property does not have a 1099-C, I wonder if I can use just the debt for that property in Liabilities, but leave the property itself out of the assets since there was a 1099-A for it.

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PDtax

Owner

Master's Degree

6,866 satisfied customers
Because my tax documents were stolen and because I didn't

Because my tax documents were stolen and because I didn't think I needed to file, I didn't file my 2007 taxes until 2016. However, the IRS has been deducting $347 a month from my social security check since 2011. I received a 21B saying I overpaid $18,000 and would receive a refind. Will I receive any of that due to the 2 year rule

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Mark Taylor

Certified Public Accountant

Masters

928 satisfied customers
I have a tax question. I'm a real estate agent. I have

I have a tax question. I'm a real estate agent. I have clients that are renting a house in Greenwood.Their former landlord wanted to sell so he is subsidizing the rent for the Greenwood home.He want to send a lump sum into an escrow account for the landlords in Greenwood.Would the landlords in Greenwood be taxed when the money comes into the escrow account or when themoney is paid the them each month or 1 year at a time for the rent?thanks,

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,252 satisfied customers
I have a new client who needs an estate income tax return

I have a new client who needs an estate income tax return (form 1041) filed for his father who died in 2015. His mother died in 2009. His mother and father both had separate personal living trusts and pour over wills. All assets owned by the mother were transferred to his father's personal living trust after her death. There was also marital trust but FMV is below estate tax filing. The son (my client) was made trustee of the living trust after the mother's death. In 2013 the father gifted to his son 50% (without filing a gift tax return) ownership in his Florida condo which was one of the assets in the trust. The Florida condo was the principal residence of the father up to the point of death in 2015. The father lived there for more than 10 years. After the father's death, the son transferred his interest in the condo to the father's estate in 2016. After the condo's transfer to the estate the condo was sold (3rd party) in 2016. Is the estate eligible for the Section 121 home gain exclusion?

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Mark Taylor

Certified Public Accountant

Masters

928 satisfied customers
Facts: In 2013 we cashed in an annuity of $84,135, the

Facts: In 2013 we cashed in an annuity of $84,135, the Federal tax withheld was $16,827. Using the H&R Block tax software we filed the 2013 return in May 2014 as we calculated a refund and understood in such cases the return does not have to be filed on or before April 15th. We believed we rolled over the $60,000 by reinvesting it in an insurance company. The tax software entered the $60,000 on line 2 (rollover of partial distribution) on the 1099-R worksheet. We overlooked reporting small dividends in the amount of $295.We received an IRS Notice CP2000 dated May 4, 2015 which added the $295 and the $60,000 to our taxable income and stating we owed taxes in the amount of $15,397. Plus penalties and interest totaling $19,557. We filed a 1040x to correct the $295 amount and to explain the rollover of the $60,000. We have been arguing with the IRS since and now are told we owe $21,146.17 due to more interest and penalities.Now we received an IRS Notice CP91 dated June 13, 2016 intent to seize 15% of our Social Security benefits. This seizure has been completed with our August 2016 benefit payments.My question is, how did we incorrectly report the rollover of the $60,000 from the annuity as that is the lion share of the additional income the IRS states we received. And secondly how do we now correct the error if there is one?

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Mark Taylor

Certified Public Accountant

Masters

928 satisfied customers
A TAXPAYER OWNS AND LIVES IN HIS PERSONAL RESIDENCE. TEN

A TAXPAYER OWNS AND LIVES IN HIS PERSONAL RESIDENCE. TEN YEARS AGO HE PURCHASED A SECOND HOUSE IN THE SAME TOWN FOR $135,000 AND PAID CASH. FOR TEN YEARS HIS SON, DAUGHTER-IN-LAW AND GRANDCHILDREN LIVED IN THE SECOND HOUSE RENT FREE. HE HAS NEVER HELD IT OUT FOR RENT TO THE PUBLIC. DURING THESE TEN YEARS THE TAXPAYER TREATED IT AS A SECOND HOME AND DEDUCTED REAL ESTATE TAXES ON HIS SCHEDULE A. THERE WAS NO MORTGAGE INTEREST. CHILDREN MOVED AWAY IN 2016 AND HE SOLD THE HOME FOR $100,000 A LOSS OF ($35,000). QUESTION. IS THIS A (1) NON-DEDUCTIBLE PERSONAL LOSS, OR (2) CAN HE TAKE THE POSITION IT WAS AN INVESTMENT THAT HE HOPED ALL ALONG WOULD INCREASE IN VALUE AND BE SOLD AT A CAPITAL GAIN BUT ENDED UP A CAPITAL LOSS?

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Robin D.

Vocational, Technical or Trade School

20,940 satisfied customers
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