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scribe jones posted:Have your girlfriend get in contact with a tax professional ASAP. This may or may not be fixable but it's beyond the scope of "free advice on an internet comedy forum" imo. You have no idea how many times I have to stop clients from trying to deduct their boob jobs.
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Jun 24, 2013 16:45
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AbbiTheDog posted:You have no idea how many times I have to stop clients from trying to deduct their boob jobs. Was it here that I saw an article linked about a stripper that was able to get depreciation on her implants accepted as an allowable business deduction?
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Jun 24, 2013 16:52
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AbbiTheDog posted:You have no idea how many times I have to stop clients from trying to deduct their boob jobs. Obviously this was my first guess too, but are boob jobs really running $30k these days? O tempores, etc.
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Jun 24, 2013 18:11
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Epi Lepi posted:Was it here that I saw an article linked about a stripper that was able to get depreciation on her implants accepted as an allowable business deduction? Threw caution to the wind and googled "Chesty Love" on my work computer to find the link: http://taxprof.typepad.com/taxprof_blog/2009/12/jerry-springer.html
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Jun 24, 2013 19:59
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Kloaked00 posted:Last question, where is the form/publication that you plugged all those numbers into? I'd like to run the numbers myself to really get comfortable with the math. Thanks again, I really appreciate it.  ) and all the aforementioned documents employers use to calculate things like withholding (expect these to be a few bucks off depending on the technique they use).I know of no (single) online calculator for the results I posted. One needs to follow the format of the 1040, Pub 505 or 15A for the withholdings calculations, and so forth. Heck, this year it looks like I used Notice 1036 from January 3 to get the withholding tables  but one can typically get all the relevant data from Pub 505. Normal people use the IRS Withholding calculator, when it becomes available, and you can usually get pretty close using last year's forms.My job has nothing to do with taxes or accounting. I read the instructions. 
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Jun 24, 2013 22:22
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Admiral101 posted:The obvious question here is what was the surgery? And how did a 30,000 medical deduction only add "about $2,000" to a refund? They did freeze her savings accounts, but that was lifted after she called the IRS on Monday. Apparently, they were going to audit her, but they mailed the audit notices to the wrong address (the audit division transposed two digits in her street address). After enough time they just went ahead and made a decision without her input. After they lifted the savings freeze, she paid $6000 and will pay off the rest with a $60 per week garnishment. All of her physicians say the surgery was medically necessary, so she is going to try to get the decision reversed in the coming months.
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Jun 25, 2013 19:16
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mlnhd posted:They did freeze her savings accounts, but that was lifted after she called the IRS on Monday. Apparently, they were going to audit her, but they mailed the audit notices to the wrong address (the audit division transposed two digits in her street address). After enough time they just went ahead and made a decision without her input. The term you are looking for is audit reconsideration, just to help you find a starting point. Or, find a tax professional like one of the good folks in this thread to help her through the process.
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Jun 25, 2013 19:34
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mlnhd posted:All of her physicians say the surgery was medically necessary, so she is going to try to get the decision reversed in the coming months. Ok, so not a boob job. New nose maybe?
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Jun 26, 2013 00:24
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My wife just started a new job after finishing grad school, and I'm trying to figure out what we need to do with our withholding and I'm not sure I'm figuring the worksheet correctly. Basically...in a full year, she will make more than I do, but THIS year (since she just started) she will be making less than me, so if I'm figuring out our liability for this year, should I calculate it by basically cutting her annual gross salary in half and saying I make more than her for just this year, so we know approximately what our liability will be? It seems that if I do it with her full annual salary (which she won't actually receive this year because she is only starting the job halfway through the year) then it's giving me the tax liability owed for an entire year at full salary, and then saying in order to meet that in the remaining pay periods this year, take out this much, and it seems way too much. Also, when completing the W4 worksheet, I assume it's giving me my tax liability for the year in terms of being "my half" of what we'll owe, and not the total for both my wife and I combined? And finally, when I look at what it tells me my liability will be for a full year, and then look at how much is being taken out in federal taxes right now and how much I've paid this year (about halfway through the year), it looks like I'm already almost on target to have the correct withholding? Sorry, just kind of confused about how this is working out and doing the worksheet seems to be telling me to withhold a large sum on top of what my employer is already withholding from each paycheck, but the numbers seem off. Is calculating your total withholding for the year and then comparing that to what I've already had withheld for half the year a viable way to look at this or am I off base?  e: I should say, I've generally gotten pretty large tax returns in recent years so my withholding was probably already way off, Levitate fucked around with this message at 21:42 on Jun 26, 2013 |
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Jun 26, 2013 21:33
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scribe jones posted:Ok, so not a boob job. New nose maybe? Lipo and tummy tucks are popular attempts at deductions. Here in Oregon I also get asked about medical weed all the time and I keep having to tell them no.
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Jul 2, 2013 23:11
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AbbiTheDog posted:Lipo and tummy tucks are popular attempts at deductions. Here in Oregon I also get asked about medical weed all the time and I keep having to tell them no. Just do what the dispensaries do and have them allocate 1% to the weed and 99% to "caregiving".
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Jul 3, 2013 00:14
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For the last 6 years or so I have been doing my own taxes, turbotax is fine; how hard can it be right? Today I got a sweet letter from the IRS asking me to send them 20k that I owe from 2011. I did sell some shares that year, but taxes were all taken out. After research I found out that the withholding doesn't show on the 1099, and that I was supposed to file a scheduled d.  Never doing my own taxes again.If I can provide those documents, is the IRS generally somewhat reasonable about these sort of things?
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Jul 6, 2013 03:30
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dunkan posted:For the last 6 years or so I have been doing my own taxes, turbotax is fine; how hard can it be right? Today I got a sweet letter from the IRS asking me to send them 20k that I owe from 2011. Yes. Send a letter back to them explaining in plain English what happened. Include a copy of the 1099-B, or whatever form you have that shows the withholding. Also include a copy of the IRS letter so that they can route your reply to the appropriate service center drone.
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Jul 6, 2013 03:41
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I've read all of the documentation on foreign currency individual tax issues and I can't find anything to describe my situation. If anyone can explain to me what the tax implications are, I'd be very grateful: I am a US citizen living and working in Europe, getting paid Euros, duly filing and paying (foreign income exclusion-ing) my US taxes. I want USD for paying off student loans, investing etc. My brother, on the other hand, is a US citizen also living and working in Europe, but getting paid entirely in USD. He wants Euros to pay rent and bills, food, travel etc. Given this situation, we are trading my Euros for his dollars. All of our exchanges are at the daily interbank (ie we are avoiding the 3-6% commission charges on each side if we used the banks). Are there any potential tax implications to this? From what I can tell of the rules, this doesn't seem to be a barter exchange, nor is it a like-kind exchange. As my functional currency is USD, I am effectively exchanging USD for an equivalent amount of USD and therefore no gain or loss. Any ideas? Thank you for your help.
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Jul 6, 2013 20:16
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So a tax guy we were referred to has turned out slimy, he claimed education expenses on my return(unbeknownst to me) and I paid back 2700 with interest and fees last year. Some others at work were hit for 5 years of payback up to 25k. Anyway, I get this in a text today. http://tomtax2.com/ Please read it concerns your taxes. It contains links to the federal injunction and complaint. I don't quite understand all the legal language but what I get from it is: Apparently hes going under, hes was filing different returns than what he was showing people. According to the documents over 5300 people and the few the 250 returns the IRS has reviewed says over 90% of people owe more than $3k. So I guess my question is will everyone be legally required to pay it back? Also it says to reply in an email that I have read the injuction and complaint documents, is there a legal action to replying back? Does that indemnify me or vice versa if I don't reply?
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Jul 6, 2013 22:52
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Smoove posted:So I guess my question is will everyone be legally required to pay it back? Yes, you're liable for the returns filed ultimately, although you might be able to negotiate down some potential willful-related penalties by arguing your reliance on a tax preparer. Technically you would be able to sue the preparer in return for breach of contract to try and claim the money lost due to the fraudulent filings, etc but given the poo poo house he appears to be in, good luck in trying to recover anything. Edit: I'm assuming that reply thing is so he has proof that he furnished everyone with the notification per the court order. Horseshoe theory fucked around with this message at 23:07 on Jul 6, 2013 |
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Jul 6, 2013 23:03
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Smoove posted:
What? How does this even happen? Did you not notice anything when your refund check was thousands higher than what was shown on your tax return? edit: ah, the refund checks were going to the tax preparer, and the tax preparer was then remitting them (after stealing the difference) to you? I'm amazed you thought it made sense for your tax preparer to be receiving your refund checks. Admiral101 fucked around with this message at 23:42 on Jul 6, 2013 |
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Jul 6, 2013 23:35
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Admiral101 posted:What? How does this even happen? Did you not notice anything when your refund check was thousands higher than what was shown on your tax return? I'm assuming that the false returns had a different remittance address (his house) and he was skimming off the top and giving the claimed return amount to the clients (a blatant violation of Circular 230 in of itself by receiving and cashing the client checks, even if there wasn't fraud involved) given sentence 22 of the complaint: quote:22 Bandzul presented (censored) with a 2010 return that claimed the American Opportunity Credit of $700. Bandzul did not file this return, but instead filed a return claiming a credit of $1,000, as indicated in the table above. Bandzul retained the additional $300 from the resulting refund instead of remitting it to (censored). Edit: Note that as a taxpayer you'd theoretically only be liable to the extent that you signed off and not to the extent of any fraudulent additions (such as the $300 above) so long as you have proof of the spread via a return with your signature on the e-file/bottom with the lower amount. Horseshoe theory fucked around with this message at 01:51 on Jul 7, 2013 |
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Jul 6, 2013 23:42
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talked with the lawyer who handled my dads estate. all is well  edit: I realize this is the income tax thread, but I figured I'd post it here due to the lack of a general tax thread salisbury shake fucked around with this message at 22:32 on Jul 19, 2013 |
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Jul 7, 2013 19:06
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Smoove posted:So a tax guy we were referred to has turned out slimy, he claimed education expenses on my return(unbeknownst to me) and I paid back 2700 with interest and fees last year. Some others at work were hit for 5 years of payback up to 25k. There's a few different things in play here: 1. When the IRS learns about a shady return preparer it will refer the person to the Justice Department, which can file a lawsuit in court to get an injunction against the person. It's common practice for the injunction to require the preparer to notify all of his or her clients about the injunction and to post a copy of the legal documents on the preparer's website. That's why this person contacted you, it wasn't out of the goodness of his heart. 2. Before the IRS tries to get an injunction it usually audits a handful of returns prepared by the preparer to gauge the extent of the problem. That's where the 90% number comes from; 90% of the returns audited as part of the IRS's investigation into the preparer had tax deficiencies. And yes, those taxpayers are generally on the hook. However, it's a little unclear right now what exactly your potential liability would be under this scenario. Generally, a person is liable for any tax deficiency even if it's the preparer's fault that a credit or deduction was wrongly claimed. However, the IRS has started to recognize that unscrupulous preparers will sometimes give a client one return and file a different return with the IRS, and pocket the difference. To my knowledge, the IRS has stopped trying to recoup tax refunds against the taxpayer if the taxpayer can prove he never got the money. That said, if the preparer filed a return you didn't know about, but somehow you ended up getting the tax refund from that return, I'm fairly certain you'll be on the hook to pay it back even if you didn't know about a particular education credit, etc. And the burden is on you to prove you never got the money. If you get audited, be prepared to show bank statements/cancelled checks of what you deposited from the preparer. 3. You don't have to reply back to his e-mail. You aren't obligated to do anything. If you ever find out that this guy continues to prepare tax returns you may want to get in touch with the Justice Department attorney named on the last page of the injunction. It's not uncommon for enjoined preparers to try and operate under the radar after they get enjoined. 4. I would save copies of the injunction and complaint PDFs from the website and hold on to them in case you ever get audited. If you do, show those to the revenue agent. It's not a get out of jail free card -- you may still owe money -- but it will make sure that the revenue agent considers all of the current policies in place for these situations. If you don't tell the revenue agent about the injunction, he or she may not know about it and they'll proceed under the assumption that you are responsible for the bad information on the return.
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Jul 7, 2013 21:58
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Does receiving a CP 2000 and paying the proposed amount increase the scrutiny/likelihood of an audit on future returns?
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Jul 7, 2013 22:06
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salisbury shake posted:My dad just died He put it in a safe deposit box, and so can you, at least until you know what to do with it. You don't have to tell them what you put in the box. When you do go to deposit it, know that currency transactions in excess of $10k generate a Currency Transaction Report, as a part of the RICO (Racketeering) laws. However, structuring deposits so that you remain under reporting thresholds is a bad idea. No matter if the money is clean, evading reporting requirements is a federal crime.
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Jul 8, 2013 02:22
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. He was a bit of a goldbug, so when his estate was transferred to me there wasn't much in terms of inheritance as he didn't keep money in banks. However, going through his belongings I found his savings of about ~$25k in cash in a lockbox along with some other valuables that he told me he kept stashed away 'just in case'. Every reference I encounter says that I don't have to declare cash/estate inheritance if it is under a certain amount and not 'complex', as the estate tax should have been paid out by the executor of the estate before I ever received anything. Obviously, no estate tax was paid on this sum of money. I'm his sole heir, and only one mentioned in his will so I guess it's mine. I'd like to put it into my bank and retirement account, but don't know exactly what I should be doing here with regards to declaring it to the IRS. Unfortunately, my tax guy is away til next week, so I'm kind of in limbo here with a stupid amount of money just sitting around and not somewhere safe. I feel like if I bring that much money in cash to a branch it will raise a million red flags that and I'll end up locked out of my savings or be audited or something.
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Jealous Cow posted:Does receiving a CP 2000 and paying the proposed amount increase the scrutiny/likelihood of an audit on future returns? No, it's simply a computer generated matching report. There seems to be about a 50/50 chance they're correct so double-check their math.
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Jul 8, 2013 16:47
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Guy Axlerod posted:He put it in a safe deposit box, and so can you, at least until you know what to do with it. You don't have to tell them what you put in the box. Simply asking your banker what the CTR requirements are will cause them to file one on you. Opening a safe deposit box and adding assets will not generate a report. For my clients, I have never seen a gold purchaser provide them with a 1099 either.
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Jul 8, 2013 16:48
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I'm sure this has been asked before, I appreciate your time briefly answering this again. I rent out a bedroom in my condo. From various websites I read, it appears that I can calculate the percentage the bedroom uses by any reasonable means, and use that figure to get a tax deduction from the rental income. For instance, in a 5 room condo, the bedroom would be 1/5, and thus I can deduct 1/5 of the general expenses, and entirely deduct any improvement that directly affects that bedroom. Therefore, I can deduct 1/5 of the cost of repainting the whole unit, redoing all of the ceilings, changing the locks, etc. Is this correct? _areaman fucked around with this message at 16:56 on Jul 10, 2013 |
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Jul 10, 2013 05:40
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This may be a dumb question, but I own a LLC registered in NY - if it is sole proprietorship with pass-through taxes, am I still required to pay quarterly taxes? Reason I ask is my (1!) customer usually just paypals me but my second customer is going to send me checks written out to my business, so I will need to open a business account to cash them..and suddenly my world becomes more complicated
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Jul 17, 2013 20:23
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Is the notion of a temporary work assignment (necessary for claiming business travel expenses) contingent on working for the same employer? If I'm normally working for Company A (a University) for 9 months out of the year and then work for Company B (a for-profit) for 3 months over the summer, with the explicit understanding that my job with Company B will last ONLY 3 months and that I will return to my original place of business, can I deduct the living expenses incurred during those 3 summer months? shodanjr_gr fucked around with this message at 05:47 on Jul 18, 2013 |
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Jul 18, 2013 05:38
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themaninblack fucked around with this message at 06:38 on Apr 30, 2016 |
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Jul 19, 2013 06:10
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You are way overthinking this; is the problem that you owe tax in April? Don't take any exemptions. Is your refund to big? Take more. There's a calculator online: http://apps.irs.gov/app/withholdingcalculator/
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Jul 20, 2013 03:15
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themaninblack fucked around with this message at 17:46 on Apr 30, 2016 |
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Jul 21, 2013 02:23
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That was kind of my same question about Federal Withholding, but I mostly figured it out, or so I thought. I'm confused now. I'm single and have always had 0 witholdings. So, from what I understand, the max tax rate was applied. I then got a sizable return after doing my taxes in April. I now have a mortgage and other things that all add up to a good bit for deductions. So, in my return last year I pretty much paid 200% of my taxes. I realize that I can utilize that extra 100% a bit better through the year rather than give it to the Fed. I used the calculators and Publication 15 from the IRS to figure out my withholding so I should just about break even. I've nearly paid this years required taxes and submitted a new w4 with the allowances to pay what will likely give me a desired small return with much less taken from my paycheck. But I don't quite understand the requirements. I also got a notice of the changes saying: quote:...you are filing Exempt Status on your Federal W-4 Form. As a result of this, no federal income taxes are being withheld from your wages. I thought it was talking about my tax return meaning I overpaid my taxes and got the overage back, expecting the same this year, too. Then I'm told there will be no tax withheld when I thought the allowances I calculated made for a smaller amount to be withheld not none entirely. Am I understanding this right? For example: My taxable gross (after deductions) for the year is $47,000. Using the Pub 15 table 5 chart thing I'm obligated to $7128.75 in tax. I already paid $6,503 for half the year due to 0 allowances. I calculated about 8 allowances to give me the remaining difference needed for a small return.
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Jul 22, 2013 13:39
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AzureSkys posted:"Last year I had a right to a refund of ALL Federal income tax withheld because I had NO tax liability," This year, you have $625.75 remaining estimated tax to be collected over the next five months, or $125/mo. If the calculator shows those numbers and says to file for eight allowances, that's what you should use. The W4 box for "Exempt from All Tax" is a completely different box. File for the number of exemptions from the worksheets/calculator. On January 1, 2014, switch your W4 back to one (1) exemption, for silly sake, and when they release the 2014 online calculator, verify that your 2014 numbers will work out as expected.
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Jul 23, 2013 04:42
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Ok, thanks for clearing that up. The electronic w4 form my work provides had me confused as I misread what the check mark for full exemption was saying. I unchecked it, re-did my math since I missed 2 pay periods and should be fine with 7 allowances. Thanks! edit: make that 10 allowances. I was calculating things based off my adjusted gross, not my actual. Man this can get confusing. Got a nice spreadsheet made now to hopefully keep it all straight. AzureSkys fucked around with this message at 11:25 on Jul 23, 2013 |
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Jul 23, 2013 10:39
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Sepist posted:This may be a dumb question, but I own a LLC registered in NY - if it is sole proprietorship with pass-through taxes, am I still required to pay quarterly taxes? I don't about your state income tax, but paypal is just as taxable as checks. If your bushiness income is enough to cause you tax liability at year end you may be subject to penalties and interest for not making quarterly payments.
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Jul 25, 2013 21:47
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_areaman posted:I'm sure this has been asked before, I appreciate your time briefly answering this again. Sort of. Here's how it works: 1. The rented room is the "business" portion of the condo. In order to find the proper ratio, you divide the amount of square footage of the rented bedroom (and arguably the bathroom & other areas regularly used by the tenant) by the entirety of the square footage of the condo. If, magically, that amount comes out to be 1/5th of the condo's area, then you can deduct 1/5th of the costs incurred that you described. 2. Keep track of these expenses (i think excel is the easiest and the cheapest way) and keep receipts if you're paranoid. 3. Find out how much you paid for the condo. I'm working on the assumption that you bought the building and the land it occupies. "What you paid" means includes closing costs. "Points" on a loan secured for the purchase are separate. 4. Allocate the amount paid between the building and the land. A reasonable assumption is that 35% of the amount was for the land and 65% was for the building. 5. Assuming that exactly 1/5th of the building is used to rent out to the tenant, and you allocate 65% of the costs to purchase to the condo, you take depreciation equal to .65 x (.2) / 27.5 x (total cost of the property) as a deduction, along with the cost of repairs and maintenance. I wouldn't necessarily advise you to do this. The difference between "costs of maintenance" and "improvements" can be fuzzy. "Improvements" are not deductible; they are added to the "basis" (effectively the cost) of the property. When you rent out a portion of your home,you report the income and expenses on a schedule E. It's important that you take depreciation on the business portion of the property. Why? Get ready for some nth-dimensional chess: - There's a concept called "allowed or allowable." You are entitled to take depreciation on the business portion of the property (the rented room). The depreciation (let's say that it's $1000) reduces the basis of the property until the recovery period ends, 27.5 years from when you started renting the property. - The basis determines how high or low your capital gain on the property is in the event of resale. The lower the basis is (i.e. the more depreciation you've taken) the higher the capital gain is on resale. -"Allowed or allowable" is the tax code's way of saying "gently caress you" to people who don't depreciate the property. If you don't take depreciation on the property, and you sell the condo, and somehow the IRS audits you, they will take the position that you could have taken depreciation on the property and will reduce the basis for the purpose of calculating the capital gain. - It gets worse. Selling the condo after you've made a portion of it business use (even for a single year) puts the business portion of the property into "recapture" territory. I will continue this in another post.
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Jul 26, 2013 11:28
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part 2: - Here's how recapture works: I'll pretend to be you and come up with some numbers to make the example hopefully more understandable. 1. I buy the condo on 1/1/2012 for exactly $100,000 in cash. 2. On 1/1/2013, I rent out the room and magically it's 1/5th of the property. The room is rented for one year. 3. For my tax return for the year 2013, I incur $1000 in maintenance expenses (no improvements - just cleaning, utilities) allocated to the 1/5th rental portion. 4. My depreciation for that year (by the formula in my previous post) is .65x.2/27.5*100k = $473. 5. My tenant paid me $1000 for that entire year. 6. On my schedule E I have a net loss of $473. 7. I kick out the tenant at the end of 2013 because I found him smoking crack with my dog. 8. Devastated by the loss of my beloved schnauser due to a crack overdose, I sell the home on 1/1/2014. The condo was my principal residence, and I satisfied the two year test. Due to the personal residence exclusion, I do not owe tax on the $100k gain on the property. Right? No I do not owe tax on $99,527 of the gain - the depreciation is subject to "recapture" because that portion was commercial property. The $473 is taxed at ordinary income rates - the theory being that you took the loss at ordinary income brackets, so you can't double up on the tax benefit when you re-sell the property. $473 is a pittance when you just cashed in for $200k, but I intentionally made the numbers small. If you take a schedule E loss on property, even if it's on renting out a room in your condo, you disqualify that portion from the personal residence exclusion for the amount of losses you took on it. If you DIDN'T take the losses, you still are liable for recapture of the $473 at your marginal rate. e: I apologize for telling you how to build a watch when you asked me what time it was. Vote Republican fucked around with this message at 11:57 on Jul 26, 2013 |
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Jul 26, 2013 11:44
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So I'm having a bitch of a time getting an answer on this issue. A few years back my wife cosigned for her then boyfriend's sister's car (mistake). The care was eventually repossessed and she did nothing about it, leaving us with the bill. The collection agency was aggressive to the point we had a suit against them for harassment and won, settling for less than the amount owed. We paid the balance and that was that. This month we received a statement from the IRS amending our income tax to show a cancellation of debt for about $5000 and we're being asked to pay taxes on that amount. My questions are: 1) If the debt collection agency screwed up and settled for less, why isn't it their responsibility to deal with the taxes on the difference? Not sure if this is relevant but it seems odd that the outcome would be us getting screwed again because they had to agree to lower terms. I'm mostly at piece with this I just don't understand the way the ruling works. 2) The loan originator issues an amended 1099-C in the full amount of the cancelled debt to both my wife and the other party involved. The IRS basically says the full amount needs to be taken care of among all involved parties but they don't care who pays how much. My wife and I feel the other girl should be the one to take this bullet since we paid off the debt collector and never received material benefit from the loan or the vehicle. We attempted to call her to try and just take over payments when we got the first repossession notice but she will not contact us. The question is: What is the process for us to show that the full cancellation of debt is there, but 100% of it belongs to the other party? I have a few weeks to respond to the IRS still and I've asked for a copy of the original contract from the lender just to get all the paperwork I can, but after calling some CPAs and talking to some friends in accounting, I just have no idea where to begin or what the process even looks like, and all the individual organizations involved basically don't care what happens outside their narrow slice of this whole thing.
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Jul 27, 2013 23:06
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You're probably going to need some help in navigating this process; I don't practice in tax controversy, but if you qualify, there are many low income tax programs that can help. Generally, a settlement of a disputed debt does not result in COD income; however, if the amount and liability was agreed on, then COD income could result when a settlement was reached. As a guarantor, I am surprised that the 1099-C was issued to you, generally guarantors do not realize income on the forgiveness of debt. You should talk to a tax professional who has experience representing taxpayers before the IRS.
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Jul 28, 2013 04:20
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PatMarshall posted:You're probably going to need some help in navigating this process; I don't practice in tax controversy, but if you qualify, there are many low income tax programs that can help. Generally, a settlement of a disputed debt does not result in COD income; however, if the amount and liability was agreed on, then COD income could result when a settlement was reached. As a guarantor, I am surprised that the 1099-C was issued to you, generally guarantors do not realize income on the forgiveness of debt. You should talk to a tax professional who has experience representing taxpayers before the IRS. What's the specific title I should be looking for? I've basically been 1040EZ for life and that's about it. More or less I'm not sure who it is I should be looking to hire.
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Jul 28, 2013 05:19
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| # ? May 10, 2024 17:43 |
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Well, depends how far you want to go; an enrolled agent or CPA can represent you before the IRS, but not in court (unless they've taken the test and are admitted to the tax court), a tax attorney can file with the tax court or in federal court if your administrative appeal does not work out. If you don't make a lot of money, check out http://www.irs.gov/uac/Low-Income-Taxpayer-Clinics. If you don't qualify, look for someone who has experience in tax controversy. Sorry I can't be more specific, my experience in this area was at a tax clinic as a law student. I know many accounting firms and law firms do this kind of work. What stage are you at? Have you received a notice of deficiency or just a letter with a proposed adjustment? Are you in contact with an IRS agent? It's possible you could explain to the agent what happened and they might remove the deficiency. There should be a number to call on the letter you received. You could also ask for help from the taxpayer advocate's office if you are not getting anywhere after explaining the situation. http://www.irs.gov/uac/Contact-Your-Advocate!.
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Jul 28, 2013 16:48
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