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Questions Answered by Matthew M Montoya
1 Answer | Asked in Tax Law for Illinois on
Q: I have a 1099c for a settled loan I cosigner. If I try for insolvency do I have to report my 401k as an asset.
Matthew M Montoya
Matthew M Montoya answered on Feb 15, 2017

Short answer: yes.

When you examine whether you qualify for insolvency, read IRS publication 4681. Page 6 includes an insolvency worksheet. Insolvency looks at all your assets (and equity in assets) as well as income to determine whether you are insolvent or not. If your assets,...
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1 Answer | Asked in Tax Law for Indiana on
Q: I owe $15,000 in income taxes to the IRS for past tax years; am interested in a quote for help withan offer of compromis
Matthew M Montoya
Matthew M Montoya answered on Feb 11, 2017

The most important question is whether you qualify for an offer in the first place. This will depend on the equity you have in your assets combined with your expected future income.

That said, offers can run between $3000 and $6000 depending on the complexity of the offer and whether...
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2 Answers | Asked in Tax Law and Social Security for Kentucky on
Q: Can the IRS levy your SSI? I only recieve 735.00 a month & they took my whole 100.00 savings leaving my acct with zero.

I just found out the IRS took my 100.00 savings out of US BANK listed as a tax levy and it left me with only 56.00 dollars to live on for the rest of the month. I only get a total of 735.00 a month for SSI and now if they are taking money out of that i will not be able to even survive as i barely... Read more »

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

Contact a Low Income Taxpayer Clinic in your area. You can run a search by going to the Taxpayer Advocate Service website.

If your situation is accurate, the clinic should be able to help you.

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1 Answer | Asked in Tax Law for Massachusetts on
Q: Is it possible to get a refund back from the IRS because it was filed beyond 3 years?

My 2011 tax return was completed but the originals to be mailed were accidentally filed with the copies. The taxes were eventually mailed in November 2016. When the IRS was contacted recently they stated that since the tax return was filed beyond the 3 year limit (which I was unaware of the... Read more »

Matthew M Montoya
Matthew M Montoya answered on Feb 9, 2017

It wasn't clear what you meant by the return was accidentally filed with the copies. It sounded like you sent the return to the IRS. In any event, the short answer is probably "no". If you could somehow prove that you properly sent the returns to the IRS on time, and that the IRS... Read more »

1 Answer | Asked in Tax Law for Washington on
Q: I am a caregiver for adult disabled child. I am paid by the state. I normally receive a 1099 and file that as

Nontaxable income but this year i received a w2. Do i file the same way or do i owe income tax on this?

Matthew M Montoya
Matthew M Montoya answered on Feb 8, 2017

The most important question is why believe the 1099 income was not taxable. IRS publication 525 specifically lists the kinds of income that are not taxable. https://www.irs.gov/pub/irs-pdf/p525.pdf You may be able to get a caregiver tax credit if you are a family member or "qualifying... Read more »

1 Answer | Asked in Tax Law, Divorce, Family Law and Child Support for Washington on
Q: What is the best way to approach the fact that my Husband is not disclosing his actual income? Do I bring it up?

For 10 years he has said he didnt have his taxes filed, he produced fake paystubs with bank statements for different periods. He has never complied with LFLR 10. This is a post secondary support that is now a full modification and they are saying it hasnt been 2 years HELP!!! There reallly is a... Read more »

Matthew M Montoya
Matthew M Montoya answered on Feb 6, 2017

Contact a tax attorney immediately. If you are a low income taxpayer, you can go to a low income taxpayer clinic in your state.

This is very serious and shouldn't be handled by yourself.

1 Answer | Asked in Tax Law for Illinois on
Q: What can I do about the irs? First they say I owe back taxes, then I don't, now I do. Please help!

I filed innocent spouse after discovering my ex did not claim income for one year and made a huge mistake on another leaving me in debt to the IRS for about 50k. I received a letter that there was no tax owed for one of those years and the other year I was relieved of any responsibility. I have yet... Read more »

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

Contact a tax attorney or an enrolled agent as soon as possible. If you are considered a low income taxpayer, you can seek help with a Low Income Taxpayer Clinic in your state.

You can also try the Taxpayer Advocate.

If you're at the garnishment phase, you need help immediately.

1 Answer | Asked in Tax Law for Michigan on
Q: I've not filed Fed or State taxes for about 10 years [long story] and I wish to get current.

I've not filed Fed or State taxes for about 10 years [long story] and I wish to get current.

I've consulted with a few CPA's who have responded with $1600-$2000 fees which I cannot afford as I'm self employed and low income barely making ends meet currently.

What... Read more »

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

A CPA will help you get the returns, certainly, but many lack the training or background to be able to help you with the resulting tax debt. What you need is either a Tax Attorney or Enrolled Agent to guide you through that process - they can prepare returns as well. Fortunately, it's a... Read more »

1 Answer | Asked in Tax Law and Business Law for Washington on
Q: For a single-person LLC choosing to be taxed as an S-Corp, what if revenue isn't enough to pay a "reasonable salary?"

I understand salary must be "reasonable in industry standards" but who decides that, and what if there simply isn't enough revenue to sustain a "reasonable" salary for the owner? I'm a sole prop now (just me, pretty small income), and I'm trying to study the... Read more »

Matthew M Montoya
Matthew M Montoya answered on Jan 26, 2017

To put things in perspective, it's important to remember that an S-Corporation is its own legal person, separate and distinct from its owners. When you, as a single person, elect to turn your LLC into an S-Corporation, you automatically wear two hats - that of a business owner and that of an... Read more »

1 Answer | Asked in Real Estate Law and Tax Law for Utah on
Q: Can we roll over the sale of our rental house into down payment when we've been living in a rental ourselves 7 years?

We haven't lived anywhere but our current rental since we moved. We have been depreciating for taxes.

Matthew M Montoya
Matthew M Montoya answered on Dec 31, 2016

I believe what you're looking for is called a Section 1031 "Like-kind Exchange." Here is an IRS publication on the issue that goes into the transaction a little https://www.irs.gov/uac/like-kind-exchanges-under-irc-code-section-1031

There are many practitioners who focus in...
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2 Answers | Asked in Gaming and Tax Law for New York on
Q: Will I have to pay taxes on any gambling winnings earned in other countries (UK), if I bring the money back to the US?

The UK does not tax gambling winnings from casinos, but the U.S does. If I win money at a British Casino, and I bring that money back to the State (I am a U.S resident that has a Visa to stay in the UK), would I need to pay any taxes on such income that I earn? If so, would I need to ask the UK... Read more »

Matthew M Montoya
Matthew M Montoya answered on Oct 25, 2016

US Citizens or resident aliens are required to report income from whatever source, US or abroad. It doesn't matter whether you bring it back or not - you are required to report it on a US tax return. Failure to properly disclose income from foreign sources or foreign accounts can result in... Read more »

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1 Answer | Asked in Tax Law for New York on
Q: I run a web site and I get income from it off the ads I run on it.

If I'm ever audited, what kind of paper work will I need?

Matthew M Montoya
Matthew M Montoya answered on Oct 7, 2016

The short answer is: documentation of the income you receive for the website. If you're just reporting it as income on your tax return, it shouldn't be too difficult. Where you report it depends on whether you categorize it as a "hobby" business or a "real" business.... Read more »

1 Answer | Asked in Business Law and Tax Law for Wisconsin on
Q: If I lease a vehicle for business use, how do I calculate percent business use vs percent personal use for tax purposes.

I want to know if in leasing a vehicle for Uber I can deduct roughly, say 80 percent (percentage of business use), of monthly payments minus the inclusion on my year end taxes.

Matthew M Montoya
Matthew M Montoya answered on Oct 4, 2016

The rules are a bit different depending on whether your business is a Sole Proprietorship (Schedule C), a C-corporation, or S-Corporation. If you're like most taxpayers, you're probably using a Schedule C to report this to the IRS. In claiming business use of a vehicle, strict rules... Read more »

1 Answer | Asked in Business Formation, Business Law and Tax Law for Nevada on
Q: So I started my llc early this year and have sold nothing but im getting a tax delinquency letter, not sure what to do?

n/a

Matthew M Montoya
Matthew M Montoya answered on Sep 30, 2016

The IRS letter will tell you which tax form the delinquency is for, as well as the tax year. Make sure your confirm that the letter is for your business and not you, personally, because they can be two separate issues. It's difficult to know exactly what the issue is without seeing the... Read more »

3 Answers | Asked in Tax Law for California on
Q: I've heard it's ok to "write off" expenses related to my business. Which costs qualify for this?
Matthew M Montoya
Matthew M Montoya answered on Sep 29, 2016

This is a really broad question. However, many times, "write-off" is used instead of the proper term "business expense" or "business deduction," which can make things confusing. An accountant would be able to help you with these kinds of issues - accountants are an... Read more »

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1 Answer | Asked in Tax Law for Idaho on
Q: Looking for student attorney interested/available to help with an IRC Section 6015(f) denied relief petition Tax Court

Have received Final Appeals Determination and wish to petition the US Tax Court

Matthew M Montoya
Matthew M Montoya answered on Sep 29, 2016

If you meet the low income qualifications, you can find assistance at a Low Income Taxpayer Clinic, many of which have student attorneys supervised by practicing attorneys. However, outside specific law clinics, a student can't help you with your petition because that could constitute... Read more »

1 Answer | Asked in Tax Law, Gov & Administrative Law, Business Law and Business Formation for Missouri on
Q: I'm tring to open a business and I'm tring to figure out what's taxable and what's not and if it is what's the tax
Matthew M Montoya
Matthew M Montoya answered on Sep 26, 2016

Tax law is certainly complex and depends entirely on your factual situation. It's commendable that you're inquiring about your tax obligations at such an early stage. Getting these systems down will greatly benefit you in the long run.

The IRS publishes small business guides...
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1 Answer | Asked in Business Law and Tax Law for Kentucky on
Q: My son had side business paid no taxes. Now figured out he should what does he need to do now.
Matthew M Montoya
Matthew M Montoya answered on Sep 26, 2016

You should find a Tax Controversy attorney to handle the matter. There are a lot of different ramifications that depend on the exact factual scenario.

For example, a "side business" that involves occasionally making trinkets and selling them on Etsy is very different from a...
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2 Answers | Asked in Divorce and Tax Law for Ohio on
Q: My wife went behind me and filed taxes separately and claimed kids. I am primary wage earner is she allowed to do this.

We had extension filed as I changed accountants with my business. She I believe is contemplating divorce and went behind me to do this. As a joint return we would have owed 2k. Without her 5k but she took herself and claimed the kids leaving me owing over 10k.

Matthew M Montoya
Matthew M Montoya answered on Sep 26, 2016

This is a question that has a lot of moving parts that depend on the exact factual situation. You should probably find a Tax Attorney to go over the fine details.

If you want to find out more about your situation, the IRS provides many publications for taxpayers to use, in this case IRS...
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