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Recent Withholding questions

I file a very simple tax return every year, receive a refund

I file a very simple tax return every year, receive a refund of about $500. I just recently found out that I had a pension account with a company I worked for over 20 years ago. I am going to take the lump sum payment to pay off my remaining debt. My question is, even though they will deduct 20% in federal taxes and an additional 10% penalty since I am under 59 1/2, I would like to know how this will affect my tax filing? Will I have to pay instead of receiving a refund?

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Robin D.

Vocational, Technical or Trade School

21,190 satisfied customers
I havent filed a state tax in about 10 years and want to

I havent filed a state tax in about 10 years and want to file this year ...will this trigger an audit for back returns?

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Mark Taylor

Certified Public Accountant

Masters

1,220 satisfied customers
According to "FIRPTA Withholding" ( 15% of gross sales price

According to "FIRPTA Withholding" (https://www.irs.gov/individuals/international-taxpayers/firpta-withholding), 15% of gross sales price of a US real property has to be withheld and paid to the IRS, if the seller is a foreign person and the purchase price exceed $300,000 OR the buyer will not use the property as his/her principle residency.I am a nonresident alien. , thus no tax returns previously filed by me.1. If my house has no rental income since I bought it, what are the procedures and required documents for me to get "Withholding Certificate" by filing Form 8828-B? Is it usually done by my title companies or myself or my CPA?2. If my house had some rental income during my possession, are the procedures and required forms different from above #1 to get the Withholding Certificate?3. How soon can I get a ITIN after filing Form W-7?4. If I do not apply for a "Withholding Certificate" during the sales, is the only way to get tax refund from the IRS is to file tax return to IRS every year after I bought the property through the time when I sell it?

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Barbara

Enrolled Agent, Paralegal

5,122 satisfied customers
I received a letter from he IRS telling me I owed $538.00 on

I received a letter from he IRS telling me I owed $538.00 on 14 August2016. I replied by letter mailed 24 August with information as follows: "Due to my poor proof reading skills I entered a wrong Social Security Number on my return. I had called both the Virginia Tax office and the and the IRS after I found the error a day after I had mailed the return and found my error to ask them if I should mail an mended return and was told by both not to send an amended return as it would only confuse the offices. They were notified by pone and I have no record of the call. About two months ago The Virginia Tax office notified me that I owed taxes and I responded by telephone and by letter enclosing my true SSN along with my withholding statement, my Amended tax form and a cop of the front and back of the check for payment due with my return which was cashed but not credited to our account. The matter was closed to my satisfaction by Telephone in a matter of three days.I replied to the IRS in Kansas , MIS with same information to the IRS that provided to Virginia. That letter was mailed on 24 August. On September 15, 2016 I received a notice from the IRSi in Kanss City that I not only owed the $538.36 but it was due on 29 September and if it was not paid by then I would be subject to a federal tax lien proceedings .Iwas on vacation from September 16th to September 23rd and could not call the IRS Kansas City office yesterday due to high call volume an cannot call until Monday the25th.My real question is how can I find out if the ever received my first letter and what is thestatus of their investigation? Should I pay the amount and hope to get the money back if it is resolved n my favor?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,686 satisfied customers
This is a two part question, recently in July and then again

This is a two part question, recently in July and then again this Monday, the California state tax board took everything out of my bank account for unfiled taxes. I didn't file 2011-now, but once I do, I will be owed a refund for every year. I have always got a refund and never had to pay. In 2013, they also garnished my wages for one pay check to take out what they said I would owe for 2011. So as of now, they have taken money for 2011-2014. When I called the California tax board they said when I file, I will then get my refund plus what they took, but the process is anywhere from 2-6 months. Is there any way to speed this up? Also is there any statute of limitations on getting the refund and/or the money they took from the wage garnishment or the 2 bank levies?

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Mark Taylor

Certified Public Accountant

Masters

1,220 satisfied customers
I just changed job classifications with my company. The

I just changed job classifications with my company. The OASDI withholding maximum has already been reached for this year. Now that I'm starting a new job classification within the same company, they say they have to start my OASDI withholdings all over again for the remainder of 2016. How can I prevent this from happening, or how can I be reimbursed for the overpayment that will result from this?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,686 satisfied customers
I got an extension and am trying to file thru Taxslayer. I

I got an extension and am trying to file thru Taxslayer. I usually get back around $2,200. This past year I had a significantly larger amount of mortgage interest that I paid, but the refund is only $2,500. I've gone back and added my medical deductions and some charity and property taxes I had overlooked, but the refund amount stays the same. I know I'm above the standard deduction. Does this sound normal?

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,014 satisfied customers
My employer, which is an LLC, purchased a whole life

My employer, which is an LLC, purchased a whole life insurance policy for me as a retirement benefit. The business is closing and he is transferring the policy owner ship to me, this is a name change on paper only. It's a New York Life whole life insurance policy. It's a New York Life whole life insurance policy. I have been and will remain the beneficiary.The premiums paid on the policy equals $85,000. It has gained $2600 in interest, for total cash value of 87,500. The death benefit is 250,000. My question this, since this is a name change on paper only, do I have to pay taxes on this now? If so, on what portion? I do realize that if I don't pay taxes now I will have to pay taxes on the money once I start drawing it out when I retire in several years. I am trying to avoid paying taxes on the lump some now, while I'm in a higher tax bracket. I would prefer to defer the taxes until I'm retired and will be in a lower tax bracket. Is there anyway to do this?We have already discussed this with two accountants. My employers accountant feels the total 87,500 needs to run through payroll so I will pay federal income tax, Social Security, etc. on it. My accountant feels there must be some other way to transfer the ownership on paper only and defer taxes until retirement.

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Dr. Fiona Chen

President

Ph.D.

550 satisfied customers
First, we have used Turbo Tax to do our income tax returns

First, we have used Turbo Tax to do our income tax returns for last two years. For tax year 2015, we owed $6000 in taxes, which we paid when we filed our return electronically. But Turbo Tax said our estimated taxes due would be $1850 per quarter, instead of $1500.(which is $6000 divided by 4). I thought the estimated taxes were calculated on the amount due at the time of filing the return, which was $6000. Is this true?I am paying the $1500 amount, instead of the $1850, but not on the schedule exactly laid out by Turbo Tax, but by Jan 2016, the total amount (which will be $6000) of the estimated tax will be paid. Anyway, if I have not paid the estimated taxes exactly on time, will we get penalized when we file our 2016 tax return? If so, how much?

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

4,192 satisfied customers
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