Happens all the time. When you are dealing with the IRS, what they are supposed to do and what they do are two different things. This is why I always advise against representing yourself. Even if you can figure out the law, the procedure is where they trip you up. I have seen the Chief Counsel...View More
The actual damages that are compensation for physical injury or sickness are not taxable. Any amount received as punitive damages are taxable. Section 104 of the Internal Revenue Code is the basis for determining which damages are excludable from income.
Hard to say. Have you been to Tax Court? If so, you would need to challenge in appelate court. If not, you can always file for a refund by filing an amended return. If they refuse this, you can bring a refund suit in district court. But with all of the procedural issues, I would hire an attorney to...View More
In 2003, I finalized and adoption and have been carrying the adoption tax credit forward since then. On my 2010 tax return which I prepared myself with TurboTax, TurboTax said that I could request a refund from the IRS for the entire remainder of the credit carried forward, so I did for roughly... View More
I am not entirely sure on the facts. But if the amount created no tax liability, it would not be correct to have a corresponding penalty with interest. It all depends on when it was "paid." If they had the money they were owed at the time the return was filed, you should not owe any...View More
The parent that has the child for the majority of the year can claim the child. The custodial parent can sign a form allowing the non-custodial parent to take the dependency deduction. But there is no basis for claiming Head of Household, etc. unless you have the child for the majority of the year....View More
You can gift up to $13,000 to each person per year without it counting against your lifetime limit. If you are married, you can make an election on your tax return and increase that amount to $26,000 per person, per year. But unless you have a large estate, this will not mean you are going to pay...View More
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