Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

Recoupment by medicare billing tax deductible, when it was

Customer Question
recoupment by medicare for over...
recoupment by medicare for over billing tax deductible, when it was part of the revenue at an earlier year.the medicare took all money's located in business acounts and also in mutual funds.would these fund be deductible as income loss
Submitted: 2 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 8 minutes by:
10/14/2015
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,867
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

Hi,

...

Yes, if I understand your question correctly, that the income was there and taxes paid ON that income previously, then you are entitled to offset the amount of the Medicare tax overpayment against the amount of income tax due under the doctrine of equitable recoupment .

...

The Tax Court was authorized by Sec. 6214(b) to make such an offset ... AND IRS has lost in previous litigation on this issue.

Ask Your Own Tax Question
Customer reply replied 2 years ago
the mutual funds were in personal account.paid the attorney 10000 legal fee.how to deduct on my tax returns
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago

The Tax Court rejected the IRS’s argument and held that it had jurisdiction to apply the equitable recoupment doctrine to Medicare taxes....

...

James Beavers, J.D., LL.M., CPA had the following to say - "Given the clear language of Sec. 6214(b) and the existing Tax Court precedent regarding the doctrine of equitable recoupment, the IRS’s argument in this case would be charitably described as weak. Having already prevailed on the substantive issues in the case and won a judgment for over $6 million in tax and penalties, it is hard to understand why, with less than $200,000 at stake, the IRS litigated the issue of equitable recoupment."

...

Hang on there. ... looks like out posts crossed ... let me read

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago

You'll do this under what's called "claim of right."

...

You'll need to re-do the return (re-work the return , not file, but simply recalculate for this purpose) for the year the income was received and taxed.

...

On the re-work do not include the amount of income that should not have been included and taxed.

...

Look at the difference between your re-work and the actual return filed (line 63 total tax)

...

If the amount repaid (recovered) was more than $3000, this difference in tax is a tax credit, and you'll report on line 73 checking box D (and you can either write pursuant to IRC § 1341 to the right in the ledger or write see statement in the line next to the box - and add a one page statement that says tax credit pursuant to IRC section 1342, Claim Right.

...

Most software will have an input for that line that generates the verbiage for the line next to the box and will generate the statement as well

...

Lane

.

Ask Your Own Tax Question
Customer reply replied 2 years ago
what if the income was from a pass through entity
Customer reply replied 2 years ago
do i amend the tax return of the entity
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago

This not an amendment... again you do not file the re-work ... you just do this so that you'll know the amount of the credit.

...

But yes, you may need to re-work the 1065, 1120-S or schedule C, to get the number correct

Ask Your Own Tax Question
Customer reply replied 2 years ago
the tax year was 2012.the tax was already filed in oct 2013 with an extension and the liability already assessed against me. the repayment transpired in march of 2013
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago

Ok, sorry, then yes you'll have to amend 2013 ... and in that case will need to amend the passthrough entity's return

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago

Just looked at the regs and this IS intended to be taken IN the year of repayment

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago

Here's the legal citation: 26 U.S. Code § 1341

...

And here's a link if you'd like to review:

...

https://www.law.cornell.edu/uscode/text/26/1341

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago

If this HAS helped, (and you don’t have additional questions on this), I'd really appreciate your positive rating … (by clicking or touching the stars or smileys on your screen) … … That’s the only way I'll be credited a portion of what you've paid JustAnswer.

...

Thank you,

Lane

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago

Hi,

I’m just checking back in to see how things are going.

Did my answer help?

Let me know…

Thanks

Lane

Ask Your Own Tax Question
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12,867
12,867 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
Can I report rental income in my tax return on a property
Can I report rental income in my tax return on a property thar is owned by my father? He does not live in the US is not a US citizen and can sign a document to allow me to receive the rental… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
IRS Experts Corporation changed name. 2016 tax return has
IRS ExpertsCorporation changed name. 2016 tax return has been filed with a new name. Taxpayer recently received notice which has old name. How do we change the name with IRS?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,466 satisfied customers
For a ny state partnership tax return, if you file an
For a ny state partnership tax return, if you file an extension but don't pay anything and then end up owing a lot. Do they still recognize the extension or do they charge a failure to pay penalty (fo… read more
Lane
Lane
JD, CFP, MBA, CRPS
12,867 satisfied customers
When bank refinance do they verify tax returns with IRS?
When bank refinance do they verify tax returns with IRS? Because I did the refinance and bank didn't ask me for transcript signature, or Can they do it without my authorization ?… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
727 satisfied customers
I am a personal injury attorney doing a schedule c as we
I am a personal injury attorney doing a schedule c as we speak. . … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I filed for an extension to file my 2017 income tax return.
I filed for an extension to file my 2017 income tax return. I recently suffered a stroke - 6 weeks ago - and have been unable to finalize my return. I should be able to file it within the next 30 days… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,466 satisfied customers
Two questions on federal tax deductibility: 1. We personally
Two questions on federal tax deductibility: 1. We personally paid legal fees for our manufacturer C Corp. The fees were for assistance in preparing a Research & Development tax credit application. Can… read more
Lane
Lane
JD, CFP, MBA, CRPS
12,867 satisfied customers
I'm trying to finish my tax return that was on extension but
I'm trying to finish my tax return that was on extension but I can't get into my return. … read more
Shan-Nel Simmons
Shan-Nel Simmons
Tax Professional/Owner
Master\u0027s Degree
27 satisfied customers
I filed an extension for 2013 tax return but no actual tax
i filed an extension for 2013 tax return but no actual tax return. Do I have until Oct. 15, 2017 to file for refund?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,466 satisfied customers
You may recall that tax deductions are only deductible by
You may recall that tax deductions are only deductible by the legislative grace of Congress. After this lesson, you might have realized that Congress was pretty generous with the types of business exp… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,466 satisfied customers
Received notice from IRS. On my tax return missed to check
Received notice from IRS. On my tax return missed to check health care coverage for year 2014, 2015 and 2016, Do I have to file Form 1040 X for each year or can I do all three on one by checking these… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
I am finalizing a personal tax return and my client has 8 or
I am finalizing a personal tax return and my client has 8 or 9 K-1 forms from operating companies that he owns. One company that i do not prepare issued a K-1 with a line 1 income of $242,089 and a se… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
727 satisfied customers
I extended, I filed an extension on my 2016 tax return. Can
I filed an extension on my 2016 tax return. Can I contribute to my traditional IRA for 2016 up to extended filing deadline? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
I filed an extension for my 2016 tax returns. I did not make
I filed an extension for my 2016 tax returns.I did not make any earned income that year but I did sell my condo: -bought it 2010 for $125,000 -Refinanced in 2013-2014 -Lived there the whole time as it… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,217 satisfied customers
I would like clarification on the IRS tax deductions and a
I would like clarification on the IRS tax deductions and a rental property I purchased recently. … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
Can franking credit on an Australian income tax return be
Can franking credit on an Australian income tax return be used on Form 1116 as tax paid on the franked distributions? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
My 2016 tax return was denied electronially by the IRS. The
My 2016 tax return was denied electronially by the IRS. The social security number for the child I listed as a dependant had alredy been used by another party. I was instructed to send in a paper return and wait for notification. … read more
Lane
Lane
JD, CFP, MBA, CRPS
12,867 satisfied customers
There is no credit on Illinois personal tax return for
There is no credit on Illinois personal tax return for property tax paid for vehicle, correct? Thanks,… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x