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Questions Answered by Eric Steven Day
1 Answer | Asked in Tax Law for Iowa on
Q: I owe back taxes. Should I hire a tax attorney?

My husband passed away 9 months ago. We were five years behind. I have them filed now. I owe quit a bit to the irs.

Eric Steven Day
Eric Steven Day answered on Mar 1, 2021

It depends on how much you owe and some other factors with the innocent spouse possibilities. I would be happy to discuss with you if needs be 702-309-3333

1 Answer | Asked in Business Formation and Tax Law for New Hampshire on
Q: I’ve started selling 20 years worth of saved up stuff on eBay. I’m starting to think I may hit the 20k threshold 4 1099

We have 5 kids and 20 years worth of all you can imagine from that and inherited items. We both work, I make over 100k. This thing I’ve been procrastinating to do is a ton of work but also fun and rewarding. I’m probably going to hit the 20k cash in threshold for PayPal to issue a 1099. I’ve... Read more »

Eric Steven Day
Eric Steven Day answered on Sep 19, 2020

The IRS has what’s considered a the hobby loss rules, which is essentially they will check to see whether you have entered into business with a profit motive. If you never make a profit and your intent is to tak the losses on your return, the IRS will consider what your doing a hobby and not an... Read more »

1 Answer | Asked in Estate Planning and Tax Law for Utah on
Q: What will be the estate tax exemption amount if my father passed away in 2011, but I collected inheritance in 2020?

There was a change in the exemption amount between 2011-2020. In 2018 Trump increased it from $5.6MM to $11MM

Eric Steven Day
Eric Steven Day answered on Sep 18, 2020

The estate tax is determined at the time of death. Therefore, if there is an exemption on the tax it would be at the time of death, not at the time you actually receive the property.

1 Answer | Asked in Tax Law on
Q: New LLC, what tax classification is best for a single owner?

New LLC in Texas and I need to select a tax classification. Single owner.

Eric Steven Day
Eric Steven Day answered on Sep 17, 2020

It depends on the type of business. If it is investment related, there is a good chance you would

Like to just be a sole proprietorship. However, if it is an active business with ordinary income, it is best to be an S-Corporation. This way you can control the self employment tax with it....
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1 Answer | Asked in Tax Law for Maryland on
Q: IRS says I owe personal income tax from 2006 but I read that IRS has only 10 years to collect. Do I owe or not?
Eric Steven Day
Eric Steven Day answered on Sep 14, 2020

The IRS has 10 years to collect on any tax due from the date of the last assessment. For instance, if you filed in 2007 and they audited the return in 2009, making changes to the return and assessing a new balance, they would have until 2019 to collect the taxes because that is the new assessment... Read more »

1 Answer | Asked in Tax Law for Maryland on
Q: Can the IRS put a lien on my house if it is also in someone else's name, who is not a spouse?
Eric Steven Day
Eric Steven Day answered on Sep 14, 2020

When the IRS places a lien on an individual, it places a general lien on that individual which then is supposed to attach to all personal property that individual owns. If the house is owned by two unrelated individuals and you go to sell the house, the title company will not be allowed to clear... Read more »

1 Answer | Asked in Estate Planning and Tax Law for Virginia on
Q: I am selling land that I inherited and I wanted to know if I will have to pay taxes on the money that I receive?

It's in Virginia.

Eric Steven Day
Eric Steven Day answered on Aug 25, 2020

You will have to pay taxes on the land that you sell if the value that you get for selling the property is larger than the value that you inherited the property at. When you inherit property, the estate tax takes care of the taxes due on the difference in value that the deceased individual holds... Read more »

2 Answers | Asked in Tax Law and Wrongful Death for Georgia on
Q: Do I have to pay taxes on funds received from my mother's personal injury cases case. She died as a result.

The defendant payed a settlement to my mother's estate. The settlement states "No Releasee has ever admitted, and but rather each specifically denies, any allegation of wrongdoing. " The case was against a nursing home.

Eric Steven Day
Eric Steven Day answered on Aug 17, 2020

If the settlement is for pain and suffering, then the payment of that settlement is non-taxable. The only issue you would have as far as taxability of the funds that were then distributed to you through the estate would be if the distribution exceeded the exemption amount on the gift tax of 11.5... Read more »

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1 Answer | Asked in Tax Law for Texas on
Q: If you buy furniture in Texas, and have it delivered to Arkansas, which state sales tax is paid?

Say the furniture once in the home in Ark. has to be repaired by Tx. Store. Which sales tax is applied?

Eric Steven Day
Eric Steven Day answered on Jul 28, 2020

You would pay the sales tax to the State of Texas. There are a lot of complex rules with online sales, but it typically depends on the level of sales that store/person has in the state on whether the State of Ark. can also collect sales tax.

1 Answer | Asked in Tax Law for Arizona on
Q: how could tax court denied me the 150 day ruling for its Jurisdiction court proceedings against IRS? How do I WIN ?

I came back to my USA resident from living in Japan from June 2019 to a few days after Xmas 2019 at my son's resident and his family. I saw IRS deficiency letter inside my USA resident mail-box,I respond to IRS AND filed my court petition in Jan. 2020, the Tax Court comes up with a specific... Read more »

Eric Steven Day
Eric Steven Day answered on Jul 28, 2020

The issue is that you were probably receiving multiple letter prior to June of 2019 at that address and that is the address that the IRS has on file for you, which is probably the address you used to file the return. There are a couple of ways to change the outcome of missing the time period to... Read more »

1 Answer | Asked in Tax Law for Georgia on
Q: My husband always take our tax return and don't give me any is there a way that I can get my part sent to me separately?

My husband is very controlling especially when it comes to money and he never share the income tax return

Eric Steven Day
Eric Steven Day answered on Jul 28, 2020

Typically, the best way to separate the refunds attributed to your income from his income is to file a Married Filing Separate tax return. However, this usually affects the amount of refund you get overall because you miss out on some credits and deductions that you would otherwise qualify for... Read more »

2 Answers | Asked in Employment Law and Tax Law for New York on
Q: Told my employer an IRS debt was settled, she deducted my pay anyway. Now I’m receiving refunds. Was that legal?

This happened during the shutdown so I assume they hadn’t processed anything. I insisted that it had been settled. She just responded with “we will deduct it from the following 6 pay periods, if you want to speak to them go ahead”

Im currently receiving refund checks, but it’s... Read more »

Eric Steven Day
Eric Steven Day answered on Jun 20, 2019

When the IRS requests a wage garnishment from the employer, they are obligated to follow it or they will receive punishment. Even if your employer believed you, they will not be able to discontinue the wage garnishment without the IRS notifying them.

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1 Answer | Asked in Tax Law for Texas on
Q: If I believe my boss is skimming money from his business, who would I report this to? The IRS?
Eric Steven Day
Eric Steven Day answered on Dec 5, 2018

You could report this to the IRS if he is not reporting all the income he is making to the IRS for tax purposes. The IRS has a whistleblower program, where you can turn in individuals or businesses for evading taxes and take a percentage of whatever the IRS is going to collect from the taxpayer.... Read more »

2 Answers | Asked in Tax Law for New York on
Q: Can you go to jail for tax evasion?
Eric Steven Day
Eric Steven Day answered on Dec 5, 2018

Yes, it is possible to go to prison for tax evasion. Tax fraud is punishable by prison time.

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2 Answers | Asked in Tax Law for California on
Q: What happens if I get a tax audit? Do I have to go to court?
Eric Steven Day
Eric Steven Day answered on Dec 5, 2018

You would only go to court if you weren't able to agree on the audit determination through the initial audit or through the appeals process. Even then, if you were to petition the tax court, it is very unlikely that you would go all the way to the court for a trial.

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3 Answers | Asked in Tax Law for Ohio on
Q: Can you go to jail for filing an incorrect number on your business's tax returns if it was an honest mistake?
Eric Steven Day
Eric Steven Day answered on Dec 5, 2018

You will not go to jail for filing your tax returns with an "honest" mistake on them. In order for you to serve time in prison for an incorrect tax return, the IRS would have to prove that you committed tax fraud. Tax fraud is only proven when the IRS can show that you INTENDED to... Read more »

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1 Answer | Asked in Tax Law for Massachusetts on
Q: My daughter received a settlement from a personal injury lawsuit when she was a minor. We put it in a trust for her.

Will she have to pay taxes on it when she is able to access it at age 18?

Eric Steven Day
Eric Steven Day answered on Oct 29, 2018

If the awarded damages were the result of physical injury, then she will not have to pay any taxes related to the judgment award. The only time you will have to pay taxes on the judgment is if there is any part of the judgment that is related to non-physical type pain and suffering damages. (ie.... Read more »

3 Answers | Asked in Personal Injury for Nevada on
Q: I got whiplash as a result of a rear-end accident. Can I sue for pain and suffering?
Eric Steven Day
Eric Steven Day answered on Oct 25, 2018

Yes, you will have to retain an attorney to file a complaint against the individual driving the other car. However, you will need to get the treatment needed as soon as possible and probably wait until treatment is done in order to know what the value of your case is before filing the Complaint.

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1 Answer | Asked in Tax Law for California on
Q: Capital Gains tax on living in new home 9 months or less.

We are almost finished building a home in the Monterey, CA area. My husband's job may force us to move out of the area within 6-9 months. If we make a gain on selling our home of $200k having only lived in it 6 months, with the tax exclusion for a move, how much in Capital Gains would we... Read more »

Eric Steven Day
Eric Steven Day answered on Oct 17, 2018

You will still be able to take the exemption from gain on the sale of a personal residence under certain circumstances. It's called the 50 mile rule. If the location of the new job is 50 miles or further away you will be able to take the exclusion of the 2-year rule and the entire... Read more »

1 Answer | Asked in Business Law and Tax Law on
Q: Taxation of an LLC owned by non USA residents

Hi,

two foreigners I mean non USA residents or citizens formed an LLC in the USA, managed by a manager third person non USA resident and citizen as well. they issued an international EIN for the LLC in order to open a Bank account outside the USA. For the first two years the LLC will not... Read more »

Eric Steven Day
Eric Steven Day answered on Oct 15, 2018

If the income is earned within the U.S., the taxpayers always have to file a US tax return to pay taxes on the income that they generate in the U.S. They may also have to file the income in the foreign country that they reside in, but they will likely get a credit for any income taxes that they... Read more »

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