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Questions Answered by Matthew M Montoya
1 Answer | Asked in Tax Law for Florida on
Q: What taxes are owed IN EACH COUNTRY for a US citizen based in the US who sells an owned property in Australia?
Matthew M Montoya
Matthew M Montoya answered on May 18, 2018

That is an exceptionally difficult question, since it is governed by two sets of tax codes and tax treaties.

You need to hire an experienced tax lawyer that can handle tax treaty interpretation.

1 Answer | Asked in Tax Law for Arizona on
Q: Can I have my ex taxes amended from the previous year?

My ex took my kids out of state without my permission while I was at work. We are in the middle of a custody case. Last year she claimed all our children behind my back. When her and the kids were still with me until Sept of 2016. There was no way she supported us and all 3 kids on her income. As... Read more »

Matthew M Montoya
Matthew M Montoya answered on Jan 9, 2018

Here are the IRS tiebreaker rules (when two people try to claim the same dependents):

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/qualifying-child-of-more-than-one-person

More detailed information can be found in IRS Publication 501:...
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1 Answer | Asked in Tax Law for California on
Q: My son's grandfather claimed my son and so did I. Who will get the tax credit?

Last year was the first year I had a steady job so I filed my son as a dependent. His mom is threatening me because her dad (the grandfather) claimed him (my son) and the grandfather's taxes were rejected. She keeps telling me I'm not entitled to claim my son, and I'm getting notices from the IRS... Read more »

Matthew M Montoya
Matthew M Montoya answered on Jan 8, 2018

You can find the tiebreaker rules (what happens when a dependent is claimed by more than one individual) here:

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/qualifying-child-of-more-than-one-person

You can find more in-depth information in IRS...
Read more »

1 Answer | Asked in Tax Law for Massachusetts on
Q: Am I required to pay taxes on gains earned from cyptocurrency like Bitcoin if I sell it?
Matthew M Montoya
Matthew M Montoya answered on Dec 2, 2017

Yes. See https://www.irs.gov/newsroom/irs-virtual-currency-guidance

3 Answers | Asked in Tax Law for Oregon on
Q: I did my sons taxes, he was audited I didn't handle it correctly, can it be fixed?

Filed on software on phone it told me he was head of household (not single) , claimed niece nephew, permission granted by sister, with whom he lived. first owed $2000ish now over$7000,threatening to take his possessions

Matthew M Montoya
Matthew M Montoya answered on Nov 16, 2017

Some things are fixable, some things are not. It depends entirely on what was claimed and whether the taxpayer was entitled to claim it or not. Since the dollar values are high enough, it would be in his best interest to do a consultation with a professional and go over the whole situation.

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1 Answer | Asked in Tax Law for Kentucky on
Q: I have a job offer in India. My family will stay in US. Would I have to pay tax to US? If so, how would I pay for it.

I was asked by the company in India how to process the part of tax that I'm responsible to pay for US. I have no idea what type of tax I would be responsible to pay and I have no idea how I would pay from overseas. Please kindly advise me of those questions. Thank you.

Matthew M Montoya
Matthew M Montoya answered on Jun 5, 2017

US citizens living abroad still have to comply with US tax obligations. I have provided links to the IRS website, which should answer many of your questions.

https://www.irs.gov/individuals/international-taxpayers/taxpayers-living-abroad

Filing requirements for US citizens...
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1 Answer | Asked in Tax Law for North Carolina on
Q: IRS has a lien on house because of owed taxes in 2000-04; lien filed 2008. Is lien active or expired?

My sister and I inherited our mother's house. She passed away unexpectedly Nov. 2015. The estate was closed May 2017. When the lawyer sent us the final paperwork, we were surprised to find that there was a photocopy of a lien on the house by the IRS for [mother's] unpaid taxes 2000-04. It notes... Read more »

Matthew M Montoya
Matthew M Montoya answered on May 24, 2017

The short answer is: in general, the lien stays on. In other words, the heirs take the property subject to an IRS lien. This is really the only way that the IRS can still collect on the back taxes that they are owed.

With that said, you should probably do a consultation with a...
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1 Answer | Asked in Tax Law for North Carolina on
Q: What is the advantage of paying taxes on a quarterly basis?
Matthew M Montoya
Matthew M Montoya answered on Apr 28, 2017

If you are earning money that isn't subject to withholding, like self-employment, you are supposed to pay "estimated tax payments" which is due quarterly. The advantage is that you won't be penalized.

1 Answer | Asked in Tax Law for Pennsylvania on
Q: Is it against the law to not claim all of my tips from my waitressing job?
Matthew M Montoya
Matthew M Montoya answered on Apr 19, 2017

Yes.

1 Answer | Asked in Tax Law for Wisconsin on
Q: I would like to know how soon does the IRS come after garnishment without being able to pay them?

I had a payment plan set up but could not sustain it due to medical and hours being cut at work and a 127,000 student loan debt. What can I do

Matthew M Montoya
Matthew M Montoya answered on Apr 19, 2017

You shouldn't be waiting for them to come to you. If you really can't pay, there are options available to you. If you meet the low income thresholds, go to your local Low Income Taxpayer Clinic, often run through legal aid groups or through law schools. If not, speak to an enrolled agent or tax... Read more »

1 Answer | Asked in Employment Law and Tax Law for South Carolina on
Q: Who is liable when it comes to employers not withholding enough federal income taxes?

I work as a tipped employee in a restaurant and rarely see a paycheck due to the money I make. I received my w2 and due to the lack of federal withholdings I owe a large amount of taxes. Is there any liability on the employer's end?

Matthew M Montoya
Matthew M Montoya answered on Apr 11, 2017

The withholding is governed by the Form W-4 you (the taxpayer) fill out when you start working somewhere. Here's a W-4 for 2017 https://www.irs.gov/pub/irs-pdf/fw4.pdf Based on your entries on the Form, the withholding will be adjusted. Often, people will put so many exemptions on the Form that... Read more »

1 Answer | Asked in Tax Law for Florida on
Q: Are legal fees tax deductible for defense against civil & possible criminal charges stemming from sale of a business?

Last year I "sold" my company (company A) to another company (company B). Company B was to pay me over three years.

I stayed on as a full-time paid contractor to work for company B. I retained ownership company A (was planning to relinquish ownership after 50% of the full payout was... Read more »

Matthew M Montoya
Matthew M Montoya answered on Apr 1, 2017

The issue is very complex and depends heavily on the specifics. Just pay for a consultation with an experienced tax attorney or other tax specialist so that you can get actual legal advice. Make sure you look carefully - many times you'll find business attorneys who also do tax instead of... Read more »

2 Answers | Asked in Tax Law and Business Law for California on
Q: Can a "General" defined partnership in the state of CA redistribute partnership income on a 1065 schedule B in any way.

My partner and I want to readjust our general partnership distribution for 2016. No partnership paper work was ever filed. Our retired CPA says yes our new EA says no.

Matthew M Montoya
Matthew M Montoya answered on Mar 31, 2017

Rather than add a third opinion into the mix, why not ask your CPA and EA to meet with you at the same time to discuss the issue? While it may seem like it's an issue of who you trust more, it's more about trying to understand what they're seeing. Tax is a complex world and there are many ways to... Read more »

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1 Answer | Asked in Tax Law for Oregon on
Q: Are there any lawyers in Oregon who postulate Pete Hendrickson's "Cracking the Code" view on Income Taxes?

Secondarily, have any lawyers successfully handled a case involving a "Cracking the Code" position?

Matthew M Montoya
Matthew M Montoya answered on Mar 30, 2017

A competent lawyer, accountant, or tax preparer will not take that position. It is considered a "tax protester position" and is considered by courts to be a frivolous position to take. Making an argument like that will land you in trouble with the IRS and possibly the Department of Justice. A... Read more »

1 Answer | Asked in Tax Law for Virginia on
Q: i have a photography business

i have a photography business and recently became LLC at beginning of the year. I dont understand or know if i am a pass thru entity and i dont know when / how often I am supposed to pay my sales tax. Before this i was sole proprietor and it was all much easier to understand

Matthew M Montoya
Matthew M Montoya answered on Mar 27, 2017

Single member LLCs are still taxed by the Federal Government as sole proprietorships by default. Unless you make an election to be taxed as a corporation, nothing really changed on the federal level. Even if you were a state sole proprietorship, you would still have state sales tax to worry about... Read more »

2 Answers | Asked in Tax Law for Colorado on
Q: Are winnings from an art contest considered taxable income?
Matthew M Montoya
Matthew M Montoya answered on Mar 24, 2017

Yes. If the award is over $600, they are supposed to issue a Form 1099. Either way, it's still taxable. You'd report the income on Form 1040, Line 21 "other income."

I have provided a link to the IRS website page on miscellaneous income....
Read more »

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1 Answer | Asked in Employment Law and Tax Law for Virginia on
Q: If I owe the IRS unpaid taxes, should I call the IRS to work out this issue myself or should I hire a tax attorney?

I just received a letter from the IRS for unpaid Federal Taxes. I was awarded a settlement from my former employer. Should I contact the IRS myself on this issue or should I hire a Tax Attorney to do this for me? I believe that the entire amount of the settlement should not be taxed, or possibly... Read more »

Matthew M Montoya
Matthew M Montoya answered on Mar 18, 2017

Settlements can be tricky because they have to be closely read to determine the proper tax classification of each item. That said, many taxpayers can choose to try to handle issues with the IRS on their own. There is certainly a wealth of information available through the IRS publications,... Read more »

1 Answer | Asked in Tax Law for Texas on
Q: If I were to be audited by the IRS and my Dad owes a lot of money to them, could this flag the IRS to go after my Dad?
Matthew M Montoya
Matthew M Montoya answered on Mar 13, 2017

Not necessarily, but it's possible. It depends on what turns up in the audit. Regardless, the most important question is why he owes a lot of money to the IRS in the first place. If a taxpayer hasn't filed returns in a handful of years, the IRS would basically create a return for the purpose of... Read more »

1 Answer | Asked in Tax Law for Oklahoma on
Q: How do I verify the validity of alleged IRS criminal lawsuits?

I received a call I returned and case #R7416 and claim of errors on my tax returns was all they would tell. No details

Matthew M Montoya
Matthew M Montoya answered on Mar 4, 2017

Contact a tax attorney that handles criminal matters. Do not delay.

1 Answer | Asked in Tax Law for Idaho on
Q: Moving expenses to report

I recently moved about 2000 miles for job. The new employer reimbursed me about $1900 for the total moving expenses. However, only $950 was shown as moving expenses reimbursed on my paycheck and W2. Now, on that particular pay period they taxed much more because $950 was added to my income. So, now... Read more »

Matthew M Montoya
Matthew M Montoya answered on Feb 15, 2017

This question gets a little tricky and depends on an employer's policies. To figure out whether reimbursed moving expenses were taxable in the first place, you're going to need to refer to IRS publication 521. If an employer repaid an employee according to what's called an "accountable plan,"... Read more »

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