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Questions Answered by D. Mathew Blackburn
1 Answer | Asked in Tax Law and Business Law for Maryland on
Q: Schedule K-1 Taxes on Conversion from LLC to C-Corp on unvested shares?

I was a partner with an LLC startup & it converted to a C-Corp in Jan 2019. At that point, I had been vested 33% of my LLC units/C-Corp Shares. In Apr 2019, my total number of shares (vested + unvested) were reduced from 125k to 48k. In Jul 2019, I vested another 33% of the new amount (half of... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on May 17, 2020

There are several different types of restricted equity that can be provided to an employee. Each is taxed in a different way. To review your particular situation is going to require the documents for the equity grant and the conversation documents to be reviewed.

Without a thorough...
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1 Answer | Asked in Tax Law for Texas on
Q: You are in a left turn only lane do you need to use your blinker to indicate your turn when that is the only option and

There is a traffic light

D. Mathew Blackburn
D. Mathew Blackburn answered on May 16, 2020

1. Not sure why this is tagged as a tax question.

2. Yes, you still signal the turn.

3 Answers | Asked in Real Estate Law and Tax Law for New York on
Q: Selling sister's condo, profit of $65K, she is a missionary in Peru how can she avoid taxes until return in few years?

Hi. My sister has been a missionary in Peru for four years, and plans to do this for several more years. I am in the process of helping her sell her Condo in NYC. She will have a net equity profit of approximately $65,000 at sale, she does want to use this to buy her next home when she returns... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on May 15, 2020

If the property has been her primary residence and she has not changed residency then the property would qualify for the personal residence exemption and the first $250k in gain would be exempt.

There needs to be an analysis of her residency status. Just because she's out of the...
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2 Answers | Asked in Immigration Law and Tax Law for New York on
Q: Wife and I file jointly but wife used her itin which made us ineligible for stimulus money she received ssn toda

Can we do anything to still get stimulus even though we already received the tax return

D. Mathew Blackburn
D. Mathew Blackburn answered on May 15, 2020

File an amended return under the SSN. Make sure to state this in the explanation section. Since amended returns must be submitted via mail it's going to be a long wait since mail has only recently started to be processed and the IRS was slow to begin with; now they have a backlog of physical... Read more »

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2 Answers | Asked in Tax Law and Education Law for Michigan on
Q: Received a blank 1099 Q form with my name on it, signed by my deceased grandma as part of her will.

This was written back it 2017, it was withheld from me by my mother until just recently without my knowledge. I am unsure of what to do with this going forward, any advice would be greatly appreciated.

D. Mathew Blackburn
D. Mathew Blackburn answered on May 14, 2020

That doesn't make sense, the 1099-Q is a reporting form for a 529 or Coverdell ESA.

Was it completely blank or did it have an institution's contact information in the upper left corner? This would be a bank or other financial institution.

Distributions can be taxable if...
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2 Answers | Asked in Tax Law, Civil Rights and Gov & Administrative Law for California on
Q: Are my rights being violated by not been able to contact anybody at the IRS about my taxes

I filed my taxes on February 21st 2020 I haven't received any stimulus and nor my tax return and I can't contact anybody at the IRS business going against my civil rights

D. Mathew Blackburn
D. Mathew Blackburn answered on May 13, 2020

Probably not. If you think they are you can file a lawsuit once the courts reopen.

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3 Answers | Asked in Civil Litigation, Employment Law, Family Law and Business Law for Colorado on
Q: I own a business and employ my husband. His ex is demanding my business records as disclosures. What are my rights.

All business accounts are in my name only. I have a contract showing I purchased the business, not my husband. It is a medical practice. Some of what they are asking for are HIPAA protected. I would not give this information to my husband. The ex-wife filed a motion stating she wants it because she... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on May 13, 2020

Until his ex actually produces a subpoena or some other formal discovery request you don't have to provide anything. Once a formal request is made you would respond under the rules associated with that request. Just explain all the different reasons why the documents are not applicable,... Read more »

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1 Answer | Asked in Tax Law and Elder Law for Minnesota on
Q: How do I obtain copies of tax returns for my elderly mother

My sister has been handling my mother's finances but does not provide annual report of her income ( pension funds, stocks, bonds, annuities,) nor copies of her tax returns. I am her son and live-in caretaker. If my sister refuses to provide this, how can I obtain a copy of her tax returns? Is... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on May 12, 2020

File a request for transcripts, form 4056-T, under your mother's account and have her sign it.

As far as legality it depends on the the state of your mother's mental capacity and any court orders. if your mother is competent and sister is handling the finances you don't have...
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1 Answer | Asked in Tax Law for California on
Q: My divorce was final in 2019. We filed taxes jointly for 2018. The taxes were paid with joint funds. My ex now says I

owe him for half of those paid taxes, which is quite a bit. Is he correct? It came out of left field. I'm in California.

D. Mathew Blackburn
D. Mathew Blackburn answered on May 11, 2020

What does the separation agreement say?

If the taxes were paid from marital funds and there was no provision i the final orders of the domestic court addressing the matter then he doesn't have a claim. if he disagrees his recourse is to file a motion for contempt of court for breach...
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1 Answer | Asked in Tax Law for Alabama on
Q: Will I be charged taxes for Alabama because I moved to Florida and didn’t change my voters registration yet?

It has been two years since I moved.

D. Mathew Blackburn
D. Mathew Blackburn answered on May 11, 2020

No, voter registration and income tax are not related. As long as you have substantial evidence that you moved your residency to FL.

Definitely register to vote in FL.

1 Answer | Asked in Tax Law for Hawaii on
Q: I am a US citizen and receive both USA SS retirement and UK equivalent to SSA. Is the UK pension HI taxable?
D. Mathew Blackburn
D. Mathew Blackburn answered on May 11, 2020

Probably. I'd need more info to be sure but generally the income worldwide of a US citizen is taxed under US law. The TCJA was supposed to fix that and most professionals agree that it actually made is worse.

I would hire a professional to do the return.

Best of luck.

1 Answer | Asked in Tax Law for Oklahoma on
Q: Back state taxes and a Tax Warrant

I received 2 papers one is a Tax Warrant for $11,000.00 and the other is saying I owe $4500.00 for 1/1/2008 to 12/31/2009. Should I contact OTC or an Attorney first? Is the a statue of limitations on money owed to the state?

D. Mathew Blackburn
D. Mathew Blackburn answered on May 11, 2020

Oklahoma statute of limitations is 10 years from assessment.

If you're trying to dispute that the tax is owed call an attorney first.

If you are trying to setup a payment plan call OTC first and an attorney if you can't or don't want to deal with them.

Best of luck.

1 Answer | Asked in Tax Law for South Carolina on
Q: I have rented my son's condo and I received 1099; now I have to provide this income as an owner, manager or trustee?

I live in SC and 10 years ago I had helped my son to buy an inexpensive condo near me.

Our family have used this condo occasionally when they had visited me. The condo is on my son's name, but I had managed it and paid all dues (there is no mortgage on it).

However, 2 years ago... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on May 11, 2020

It sounds like you rented the property, received the income, and received the 1099. You would report that income less expenses and depreciation on a Sch E.

Ownership is irrelevant; you're the one running the rental business and using the condo as a business asset. Your right to use...
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2 Answers | Asked in Family Law and Tax Law for Idaho on
Q: Why does my ex husband get to claim our kids on his taxes? I have sole custody of them. He sees them 4x a month.

He does pay child support but this doesn't seem fair. The order was put in place by an attorney hired by Heath and welfare.

D. Mathew Blackburn
D. Mathew Blackburn answered on May 10, 2020

Because the order says that he can and he's current on support. If you wish to change that you need to file to modify the order. Depending on your state domestic laws it may effect the support amount or other items on the order.

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2 Answers | Asked in Employment Law and Tax Law for Nevada on
Q: Can an employer make a paycheck payable to a w-2 employee’s family member instead of the employee?

Employee does not want to endorse back of check to have family member deposit/cash for them. They want their paycheck made payable directly to their relative who does not work for the company. Employee is not an independent contractor.

D. Mathew Blackburn
D. Mathew Blackburn answered on May 10, 2020

No, that's not ok. I would hire local counsel or file directly with the state dept of labor.

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3 Answers | Asked in Business Formation, Business Law and Tax Law for Florida on
Q: Filing taxes for a new LLC in Florida

Dear Professionals,

I registered my LLC with the state of Florida last October, but I have not been able to start running my business properly.

My company status is showing Active and I would like to prevent the status from changing into Inactive.

Given that I have not... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on May 10, 2020

Those two things are not related. For the state file the annual report. If you have no income or expenses you don't have to file a Sch C for the business.

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2 Answers | Asked in Tax Law and Gov & Administrative Law for Florida on
Q: Do I qualify for the coronavirus-related distributions?

Live in South Florida, fell ill in March with a sore throat, low grade fever, etc.... but didn't meet the criteria to be tested. You had to be hospitalized or 65 or older at that time. I am 55. I self quarantined like the task forced asked us to do. I had just started to work for Instacart... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on May 6, 2020

I'm not really sure what you're asking for.

There is the impact recovery payments that everyone under a specific income amount will receive, eventually and the EIDL and PPP small business loans as well as the payroll tax credit and required leave in the event you are sick, caring...
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1 Answer | Asked in Tax Law for California on
Q: My CPA is asking what IRS code determines the tax incentive of a solar system contracted, purchased and paid in 2019?

My accountant believes it is when the system comes on-line, not when it is contracted or paid. Is this true? I need the tax credit for 2019, not 2021. Even though it was paid, contracted and installed in 2019, but because of construction will not be in service until next year.

D. Mathew Blackburn
D. Mathew Blackburn answered on May 6, 2020

CPA is probably right.

See Notice 2013-70. https://www.irs.gov/pub/irs-drop/n-13-70.pdf

There may be additional facts and circumstances that would allow a credit in 2019 but generally you have to be making power to get the credit that year.

1 Answer | Asked in Gov & Administrative Law and Tax Law for Michigan on
Q: My mother died in 2019. She just received a stimulus check in the mail. Does the CARES Act state it should be returned?

She has 3 surviving children. Should we cash or send back to treasury.

D. Mathew Blackburn
D. Mathew Blackburn answered on May 4, 2020

The CARES act does not address this situation and neither has the IRS. The current professional consensus is that where the individual passed in 2019 the estate is allowed to keep the amounts and distribute the funds.

There is not currently a function to return the funds. We don't...
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1 Answer | Asked in Banking, Business Law and Tax Law for Idaho on
Q: Do non-resident LLC owners have the right for Tax Return based on income?

Im currently building a delivery startup LLC in Idaho, US. Im a resident and one of the partners as well, while two other partners are non-residents, who live in Europe.

Is 35% of total income or just the part of income that is distributed to foreign owners withheld for taxes?

Do... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on May 2, 2020

Foreign owners of an LLC report on a Form 1120 and 5472.

There are withholding requirements for foreign owners of an LLC.

I don't what tax return based on profits means.

LLCs are not taxed. The income flows through to the members. The foreign members will have...
Read more »

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