When you withdraw funds from an inherited IRA, the money is subject to income tax to the beneficiary that withdraws the IRA. However, you should not be required to pay the 10% penalty for the early withdrawal of these funds. Therefore, the first 10% withholding would be a good idea in case you... View More

If the IRS has called you and indicated that they are coming to arrest you, this is just a scam and you should ignore the call. They are just trying to get some money out of you. The IRS starts the process of collecting on individuals by sending out mail correspondence.

The failure to file penalty with the IRS is 5% of the unpaid taxes for each month or part of the month that the return is late up to a maximum of 25%. If you don’t owe the IRS anything, then there is no penalty for filing late, but if you wait too long you may not be able to get a refund. If... View More

You can avoid paying any tax, but you will be required to file a gift tax return, Form 709, along with your normal 1040 tax return you file annually. When you pay more than the 15K allotted for individuals to gift on an annual basis, you have to file the Form 709 to record the excess gift.... View More

We can help you get your taxes filed and deal with some of the penalties depending on your filing history. Just give us a call.

The IRS recently came out with some regulations indicating that if you were doing work on a piece of rental property and the invoice for that work was $2,500 or less, you wouldn't have to do the analysis as to whether that was considered a repair or an improvement. You could always consider... View More

It's not illegal to file separate, if you file Married Filing Separately. You would just need to indicate who the spouse is on the return that is filed. There are some rules that you would also need to follow when filing separately, so make sure you file under the guidance of a tax professional.

You can only use Capital Losses to offset capital gains. If you don’t have any capital gains, you can write off $3,000 per year until you either have enough capital gains to offset the remaining loss or you exhaust the whole capital loss using the $3,000 per year. In your example only $3,000 of... View More

When a company requires you to fill out a W-9, they typically have you fill out the W-9 so that they have your information to file a 1099 with the IRS for the income that they paid to you. This will affect you for tax purposes because whatever is recorded on the filed 1099 is what you should be... View More

I am not an Indiana Attorney, but generally anybody can prepare a financial statement for their business. Where you would need the licensing is if you were preparing financial statements for a publicly traded company or you were Auditing those financial statements.

If anything can be done, it would have to be taken care of through the court holding jurisdiction over the court. The IRS just issues the correct refund. They are not going to be aware of your pending divorce decree.

You will not have to pay taxes on the income of the sale of a personal residence for up to $250,000 (single taxpayer)/$500,000 (married filing joint taxpayer) of income. However, you must meet the ownership and use test:

During the 5-year period prior to the sale of the home, you must... View More

If you are the beneficiary of the trust and the trust document calls for you to receive the income from the trust than you will likely have to pay taxes on any amount of income generated in other states to their taxing agency as well as to yours in Arkansas. However, a lot of the determination on... View More

Assuming that you paid the full amount due on the tax return in a timely manner you shouldn't have anything to worry about. Most states as well as the federal government base any penalties related to the late filing of a tax return on whether or not their is still a liability when the return... View More

If your wife takes over the account at your death, there will be no tax consequences other than the annual tax consequences of the trading activity within the account. You can pass your estate to your wife tax free.

Federally, the statute of limitations never starts to run until you actually file a return. Many states have his same policy. Sometimes they will look at your income and generate an amount due based on a single filed, but this does not start the statute, you will still need to file your own... View More

The bonus that you received was in relation to work that was performed in NC, therefore, NC can tax you in relation to that income. If the income was produced or "earned" in that state's jurisdiction, that state has the right to tax that income. The other way that a state would be... View More

Any time you have a debt that is forgiven, you will owe taxes on what is considered forgiveness of debt income. How much you will owe depends on the state where you live as well as what type of income you have on top of the cancellation of debt income.

One of the main requirements for the taxpayer to take the credit is that you have qualifying dependent care expenses. Therefore, you cannot deduct what you didn’t spend money on.

Your required minimum distributions are determined on an annual basis. Therefore, if you took the distribution last year and are trying to include that distribution as part of your required minimum distribution for the following year, it won’t work. There is a different equation that is used... View More