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2 Answers | Asked in Tax Law for Texas on
Q: I work in Kuwait (military contractor) I had to open a salary account & filled out a W9. Will I get a 1099 from the IRS?

I work for UMUC Europe and we fall under a sponsorship company to work in Kuwait. The Kuwaiti bank require us to fill out a W9 when we open our mandatory salary account. What impact will filling out that W9 have on me this tax year? Will that foreign income be reported to the IRS?

Frank Huerta Jr
Frank Huerta Jr
answered on Jul 31, 2018

The purpose of a W-9 is for a business to properly report payments when it pays more than $600 per year to an individual taxpayer. You will likely receive a 1099 Misc but from the business not the IRS. They will send a copy of the 1099 Misc to the IRS.

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1 Answer | Asked in Tax Law for California on
Q: Does a release of a Calif. FTB tax lien also appear in public records? i.e. the lien would shows, so would the release

A tax lien is registered against me, from more than 25 years ago. The lien has expired under statute of limitations. The lien was reported to credit bureaus, but has since dropped off credit bureaus because it is older than the 6-7 year old credit bureau retention period. So if I get a release from... View More

Frank Huerta Jr
Frank Huerta Jr
answered on Jul 28, 2018

The FTB recommends that you contact the credit agencies directly to report a modification or release of a lien since they do not report it directly. I would get a copy of the notice of release for the lien and send it to the credit bureaus requesting that they remove it from your record.

1 Answer | Asked in Tax Law for Georgia on
Q: My father died in 2002. At the time of death, his property was for sale for $1,000,000. He had a contract for that

amount, but the city would not approve it. We have had several offers for that amount but again the city wouldn't approve it. We now have a contract for $500,000. We didn't get an appraisal at the time of his death, would the previous sale price show the value of the property at this... View More

Frank Huerta Jr
Frank Huerta Jr
answered on Jul 28, 2018

It would depend on a number of factors. How close was the sale before he passed and was there an appraisal for the sale? If there was a third party appraisal within 12 months of his passing you could make that argument. However you may need to hire an expert.

2 Answers | Asked in Criminal Law, Divorce, Family Law and Tax Law for California on
Q: My ex husband filed jointly the year we were in the process of divorce. I assume he ucollected the full refund amount

Update: I'm not getting a clear answer on this. I only recently (a month ago) found the paperwork. The check should have been reissued in both names "and." How is it the check was cashed or deposited into an account that was solely his, without my signature or knowledge? So what... View More

Frank Huerta Jr
Frank Huerta Jr
answered on Jul 28, 2018

If your divorce has not been finalized you should include the claim for half the proceeds. As mentioned by Mr. Day, the IRS will not know what is going on with your divorce. You may also want to call the IRS to request an account transcript to determine when the refund was issued by the IRS.

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4 Answers | Asked in Tax Law for California on
Q: Social Security and Pension garnishment

I am a single 65 year old. I have 6 figure liens by the IRS and State of California against me. I have no way to even attempt to settle these claims. They have been garnishing my $60,000 salary for 5 years now. I am getting ready to retire, and will be eligible for $2,000 a month in Social... View More

Frank Huerta Jr
Frank Huerta Jr
answered on Jul 10, 2018

In addition to the answers already provided, you may want to consider an offer in compromise. Your income will be fixed and the likelihood of collection is somewhat limited.

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1 Answer | Asked in Tax Law for Georgia on
Q: If I open an Etsy shop to sell a few paintings I do for fun, will I be taxed? It’s just for side money not my income
Frank Huerta Jr
Frank Huerta Jr
answered on May 30, 2018

It is considered taxable income.

1 Answer | Asked in Tax Law for California on
Q: The IRS said my 2018 return is under review, an income verification review, it is day 84 and still nothing. any ideas?

What does the IRS do in this review? Do they contact my bank, or ask for me for information? My return was filed with an EITC claim. Is it a good or bad sign that it's still ongoing?

Frank Huerta Jr
Frank Huerta Jr
answered on May 2, 2018

I tend to see this occasionally for self-employed or contract workers who claim the EITC. They are investigating as to whether the taxpayer has legitimate earnings to claim the Earned Income Tax Credit. I would suggest you contact the Taxpayer Advocate Service, then can assist and can issue an... View More

2 Answers | Asked in Tax Law for Missouri on
Q: Wife of 1 year of marriage. Husband not paid Federal or State taxes for 3 or more years. I did not know. Am I liable?

My husband owns and operates his own jewelry store in Rolla Mo. Sells consignment jewelry, custom makes own jewelry and sells, repairs jewelry. My husband has not paid Federal or State taxes for over 3 years. I didn’t know until this tax year. Has had business for 37 years. He told me that for... View More

Frank Huerta Jr
Frank Huerta Jr
answered on May 2, 2018

File married filing separately if you feel that your spouse is engaged in tax fraud. I would also suggest keeping your finances separate as well. You do not want to be a part of your husband's business affairs.

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1 Answer | Asked in Tax Law and Health Care Law for California on
Q: Can you define what the IRS looks for with regard to a doctor's certification of chronic illness

My mother, diagnosed with alzheimer's and dementia, went into assisted living in April of 2017. I was unaware of the IRS Publication 502's definition of "chronically ill individual", which requires a Doctor's certification / prescribed care plan made "within the 12... View More

Frank Huerta Jr
Frank Huerta Jr
answered on Apr 20, 2018

I would suggest you ask the doctor to modify the notes or write a specific note regarding the need for supervised care. It is unlikely the IRS will want to examine patient medical records. In most cases, correspondence from the treating Physician will suffice.

1 Answer | Asked in Tax Law for Massachusetts on
Q: I was out of town on tax day and forgot to file on time. What should I do now?
Frank Huerta Jr
Frank Huerta Jr
answered on Apr 20, 2018

If you owe taxes, file as soon as possible. If you are entitled to a refund you can file within 3 years of the due date, but I would still recommend you file as soon as possible.

2 Answers | Asked in Tax Law for California on
Q: I had approximately $2,000 in wage garnishments from the Franchise Tax Board in 2015 to help pay down an alleged owed

amount for 2009 that I never filed. I recently filed and found that I did not owe for this year. The Franchise Tax Board told me that I was not entitled these monies back as the garnishments took place more than a year ago. Is this true? Or do I have a right to this overpaid tax?

Frank Huerta Jr
Frank Huerta Jr
answered on Apr 19, 2018

California Revenue and taxation Code Section 19306 states that no credit or refund shall be allowed after four years from the original due date of the return, four years from the date the return was filed (if filed within the extension period), or one year from the date of the overpayment,... View More

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1 Answer | Asked in Tax Law for Pennsylvania on
Q: Is it true that there is no federal tax on the sale of a personal residence lived in for more than 2 years?

Furthermore, what is the tax burden for the sale of a personal residence in PA?

Frank Huerta Jr
Frank Huerta Jr
answered on Apr 15, 2018

The Internal Revenue Code allows a 250000 exclusion (500000 for married filing jointly) of gain from the sale of your primary residence if you lived there for at least 2 of the 5 years prior to selling it.

State tax entities may vary the amount of the exclusion.

3 Answers | Asked in Business Law and Tax Law for Colorado on
Q: Are paying taxes voluntary or law?
Frank Huerta Jr
Frank Huerta Jr
answered on Apr 11, 2018

Consider it like golf, you keep your own score but are required to accurately report and pay accurately. If you try advance the argument that taxes and the reporting a re merely voluntary, the IRS considers this a frivolous argument. The IRS likes to make examples of those advancing such arguments.... View More

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1 Answer | Asked in Divorce and Tax Law for Florida on
Q: I pay the mother of my kids an additional $630 a month on top of child support, should she claim as income on her taxes?

I am a veteran using the GI bill to finish school and live off of my BAH. The state of FL only requires that I pay $370 a month while I'm in school since I'm not working, but I have given her the extra money for the past 3 years, which comes from my VA Disability, which is $1172 a month.... View More

Frank Huerta Jr
Frank Huerta Jr
answered on Apr 7, 2018

If the extra money was a spousal support order then it is alimoney and taxable to her and a deduction for yourself. If you gave it to her without a court order it is a gift. Gifts are not income. The amount you "gave" would be under the annual exclusion and you wouldn't need to file... View More

1 Answer | Asked in Tax Law and Immigration Law for Texas on
Q: If someone is detained at an ICE detention center, is a family member able to file their taxes on the detainee’s behalf?
Frank Huerta Jr
Frank Huerta Jr
answered on Apr 5, 2018

If the person who is detained gave authorization through a power of attorney it would be possible for that authorized representative to file on their behalf.

1 Answer | Asked in Tax Law for Pennsylvania on
Q: hello , I had a 1099c for credit card charge off debt forgiveness 2015/2016. Can I file as insolvent to have this 1099c

To be considered non taxable with form 928?

Frank Huerta Jr
Frank Huerta Jr
answered on Apr 5, 2018

Publication 4681 gives you guidance to properly enter form 928. Page 6 of the publication 4681 has the worksheet that can help you determine your level of insolvency.

2 Answers | Asked in Employment Law, Tax Law and Employment Discrimination for California on
Q: My wife's tax withholdings were changed without her consent causing us to owe a tax penalty.

We were both employed by the same company and during our employment we married. Our employer decided to change my wife's withholding to married-0, she had requested to be single-0. The signed W4 on file with the company also said single-0. When she noticed it was changed she asked the company... View More

Frank Huerta Jr
Frank Huerta Jr
answered on Apr 3, 2018

To further comment on what was recommended. You must also have had no previous penalties for 3 years prior to making the abatement request and you must be up to date with your filing requirements. I would recommend in order to avoid this from happening in the future inform the employer in writing... View More

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1 Answer | Asked in Tax Law and Probate for California on
Q: My mother left me an inheritance from PA. I’m in CA. Is there an inheritance tax state/federal? If so what’s the %? TY
Frank Huerta Jr
Frank Huerta Jr
answered on Mar 19, 2018

The estate is responsible for paying estate taxes. The executor of the estate is delegated the responsibility for the proper filing of tax returns and payment of any taxes owed by the estate. If you merely received an inheritance you don't pay the tax, the estate does.

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