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Illinois Tax Law Questions & Answers
1 Answer | Asked in Criminal Law, Tax Law and International Law for Illinois on
Q: What's the statute of limitations for smuggling a rug into the US from Iran, through the UK?

My parents declared an Iranian rug they bought in the UK sometime between 1990 to 1998. They declared it as Pakistani. I was there when it occurred during a European vacation to Paris and England. I think they still have the rug, and there is probably some documentation still out there about the... View More

James L. Arrasmith
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answered on Apr 20, 2024

In the United States, smuggling items into the country by falsifying their country of origin is considered a violation of customs laws. However, the exact statute of limitations on this can vary depending on specific details such as the nature of the goods and the perceived intent behind the... View More

1 Answer | Asked in Tax Law for Illinois on
Q: Hi! I just wanted to know how does the tax department figure out that a person hasn’t paid his taxes in the state?

What measures do the department take to find out a non resident in the state. For example, if a person is staying in the state but hasn’t paid any taxes.

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answered on Apr 20, 2024

When a person hasn't paid their taxes in a state, the tax department employs several strategies to detect this non-compliance. They use data from various sources, such as employers, banks, and other financial institutions, which report income and financial transactions to the authorities. This... View More

1 Answer | Asked in Tax Law for Illinois on
Q: Illinois IRS is claiming I owe state taxes from 2017.

I was unemployed, an university student, and still claimed as a dependent at that time. I only filed a 1040-EZ that year. Should I fight this?

James L. Arrasmith
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answered on Apr 9, 2024

It's important to understand why the Illinois Department of Revenue (IDOR) claims you owe state taxes for 2017. Here are some steps you can take:

1. Review the notice: Carefully read the notice from the IDOR to understand the reason for the claimed tax liability.

2. Gather...
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1 Answer | Asked in Tax Law for Illinois on
Q: I received $18,000 in social security disability this last year. Do I need to file an income tax return?
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answered on Apr 2, 2024

Whether you need to file a federal income tax return depends on your total income, filing status, and age. For the 2023 tax year (filed in 2024), if your only income was from Social Security Disability Insurance (SSDI) and it was less than $25,000 (for single filers) or $32,000 (for married filing... View More

1 Answer | Asked in Tax Law for Illinois on
Q: I paid my property tax to the wrong account and the owner of the property is not paying back.

I mistakenly paid my Illinois property tax to the wrong PIN, and despite my efforts to contact the property owner, I haven't received a response. The Treasurer's Department sent an initial letter to the owner on March 15, 2024, and I also sent a letter at the beginning of March. Despite... View More

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answered on Mar 21, 2024

First, you should consider contacting the Illinois Treasurer's Office or the county treasurer's office directly to explain the situation and inquire about possible procedures for correcting the payment made to the wrong Property Index Number (PIN). They may have a process in place for... View More

1 Answer | Asked in Tax Law and Federal Crimes for Illinois on
Q: Do I have any options to amend a 2019 tax return or sue my accountant for his mistakes causing an overpayment on taxes?

I am aware of the three year amendment limitation for tax refunds. And I did read that it states "GENERALLY" three years. Are there any extensions to this rule or

other procedure to file an amendment? Or is this rule set in stone. Also, regarding the two year limitation on filing... View More

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answered on Mar 11, 2024

Regarding amending your 2019 tax return, the general rule is that you have three years from the original due date of the return or two years from the date you paid the tax, whichever is later, to file an amended return and claim a refund. However, there are some exceptions to this rule:

1....
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1 Answer | Asked in Tax Law and Business Law for Illinois on
Q: Can I offer a tax write-off form for my book drive customers when specific purchases go directly to charity?

I'm an author and have set up a book drive to benefit two specific, well-known charities. People can purchase the books at a discount from me, and then I will either ship or drive the books to the donation drop-off point. The buyers do not receive any physical items: they are purchasing for... View More

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answered on Mar 11, 2024

Regarding your questions about offering tax write-offs for your book drive:

1. Offering a tax write-off form to customers:

- As an individual author, you cannot directly offer tax write-off forms to your customers. Only qualified 501(c)(3) charitable organizations can provide donors...
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1 Answer | Asked in Tax Law for Illinois on
Q: I just discovered my employer failed to take out federal taxes yet took out state taxes. They will not meet with me.

I completed a W4 when I was hired. I am a salaried employee. I have contacted them three times in the past two weeks and they refuse to respond. What can I do?

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answered on Mar 8, 2024

Discovering that your employer has not deducted federal taxes from your salary, despite taking out state taxes, can be distressing and potentially lead to complications with the IRS. The first step is to ensure that you have documented your attempts to contact your employer about this issue. Keep... View More

1 Answer | Asked in Tax Law, Family Law, Child Custody and Child Support for Illinois on
Q: My ex is threatening with charging me income tax for claiming my son. Can he do this?

I have been separated from my son’s father for over a year. Never married. No court order for parenting time or child support. He always claimed our son on income tax returns. This year I claimed our son. My son’s father had his W4 setup to claim 1 and is telling me he’s going to charge me... View More

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answered on Feb 28, 2024

In situations involving tax claims on dependents, the right to claim a child on a tax return typically depends on IRS rules concerning custodial and non-custodial parents. If you have provided the majority of the support for your son and he has lived with you for more than half of the year, you... View More

2 Answers | Asked in Estate Planning and Tax Law for Illinois on
Q: Is the trust or trustee liable for trust tax fraud?

Who is liable for abusive trust tax evasion schemes? The trust? Or the trustee? In other words, if a trust beneficiary has failed to privately persuade a trustee to stop committing fraud on the trust's taxes (among other offenses), and the trustee keeps doing it anyway, and the beneficiary... View More

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answered on Feb 22, 2024

The liability for abusive trust tax evasion schemes typically depends on the specific circumstances and actions of the parties involved. In cases where a trustee willfully commits fraud on the trust's taxes, the trustee would generally bear primary responsibility for the fraudulent actions.... View More

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1 Answer | Asked in Tax Law for Illinois on
Q: Do I say that I have applied for U.S. lawful residence on my tax returns?

My husband is a lawful permanent resident and has filed I-130 in 2023. We are currently waiting for approval and have not filed I-485 yet. While filling out my paperwork for tax returns as an F-1 student, I have been asked if I have ever applied for U.S. citizenship/lawful residence. What should I... View More

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answered on Feb 22, 2024

When completing your tax returns, it's crucial to provide accurate and truthful information. If you've been asked about applying for U.S. citizenship or lawful residence, and an I-130 petition has been filed on your behalf by your husband, then yes, you should indicate that an application... View More

1 Answer | Asked in Real Estate Law and Tax Law for Illinois on
Q: Do home real estate capital gains have a window in which reinvestment would be considered a wash sale?

This would be related IRS topic 701 capital gain exclusion from a home sale.

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answered on Jan 31, 2024

In the context of IRS Topic 701 and the capital gain exclusion from a home sale, the concept of a "wash sale" generally doesn't apply. The wash sale rule is primarily associated with securities, like stocks and bonds, and aims to prevent taxpayers from claiming a tax loss on a... View More

1 Answer | Asked in Divorce, Family Law, Tax Law and Military Law for Illinois on
Q: I was married in Okinawa, JP, however, I am trying to get divorced and have come across that it was never filed in IL.

My spouse and I got married in Okinawa while on active duty orders. However, I am trying to file for divorce and have come to many issue due to the unfortunate situation and have also realized that it was never filed with my home of record (Champaign County IL). We have been “married” since 11... View More

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answered on Jan 30, 2024

Based on the information provided, a few key points:

• For a marriage that occurs abroad to U.S. citizens, it is valid in the U.S. even if not registered specifically with the home state. So you have a valid marriage.

• However, to get divorced in Illinois, you typically need to...
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2 Answers | Asked in Banking, Immigration Law and Tax Law for Illinois on
Q: As an international student, can i convert money from my home country into US dollars and buy crypto on daily basis.

Also, after buying the cryptos, can i trade them back to my home country. And doing such will i face any immigration issues?

Syed Ali Hussain Lahooti
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answered on Jan 21, 2024

Can you do what you are doing from your home country, such as converting your currency into dollars and then converting it back to your country's currency? Being on student status, having a social security number, and a US bank account, and using it to trade crypto—all of these fall under... View More

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1 Answer | Asked in Tax Law for Illinois on
Q: Will my tax refund get taken if the school I attended was closed down due to legal matters

The credits earned can’t be transferred anywhere

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answered on Jan 22, 2024

If your tax refund is at risk of being taken, it usually relates to specific debts like federal student loans, child support arrears, or outstanding taxes. The closure of your school due to legal matters, in itself, should not directly lead to your tax refund being taken. However, there are some... View More

1 Answer | Asked in Immigration Law and Tax Law for Illinois on
Q: I'm on F1 visa and going to my country for a break can I work on my college project and get paid while Im ?

I'm a F1 visa holder and i am currently outide US for winter break. I came a week ago to my home country and will go back next month to US. Can I work on my college's web development project. I will get paid based on hours for this project, but this project is a part of my college's... View More

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answered on Nov 22, 2023

Regarding your F1 visa status, the key aspect is whether the work qualifies as Curricular Practical Training (CPT) or Optional Practical Training (OPT). Since the project is part of your graduation requirements, it might be considered as CPT. However, you must have authorization from your... View More

1 Answer | Asked in Tax Law, Business Law and International Law for Illinois on
Q: What's the best way to hire a non resident independent contractor working from Costa Rica, Ecuador or Colombia

My husband and I are independent contractors ourselves working in Chicago app b week developers (we both have green cards) and started hiring independent contractors to help with some projects(a little over $2k/year). There are a couple of projects that are coming and will make us have a lot of... View More

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answered on Nov 19, 2023

Hiring a non-resident independent contractor from countries like Costa Rica, Ecuador, or Colombia involves understanding both U.S. tax implications and the legalities of international contract work. When hiring international contractors, one key form is the W-8BEN, which is used by foreign... View More

1 Answer | Asked in Tax Law for Illinois on
Q: On a 1099 C of around $ 27,000, how much tax I will have to paid or there is anything that I can avoid paying,

I have this letter from an attorney that I contract on this cort case because I took a loan (signature) and it seems that was some illigalities or not outhorize on my state. The company agree not to persue any collections but they will issue a 1099 C

I’m one of the primary attorneys... View More

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answered on Nov 19, 2023

When you receive a 1099-C form for canceled debt, such as the $27,000 in your case, the amount is generally treated as taxable income by the IRS. The exact amount of tax you'll owe depends on your overall income, tax bracket, and other factors in your tax situation for that year.... View More

1 Answer | Asked in Tax Law for Illinois on
Q: Illinois has no death tax, mother did not earn enough. Do I need to file federally?
William K. Hayes
William K. Hayes
answered on Nov 8, 2023

The answer depends on the dollar value of the estate. If your mother did not earn enough to have to pay the Illinois inheritance tax, it is doubtful that she will have to pay any federal estate taxes since the dollar value threshold of the estate for federal tax purposes is significantly higher... View More

1 Answer | Asked in Family Law, Personal Injury, Tax Law and Workers' Compensation for Illinois on
Q: if someone else put my daughter as a household memebr when she is not she was mine and have given me stipulations on get

on getting my child back what can i do in order to get this fraud behavior to stop

Cheryl Powell
Cheryl Powell
answered on Oct 1, 2023

Do you have a court order between you and the other parent that gives you custody or parenting time? Who is this person whose household she has joined? How old is this child? Have you filed a police report? There are a lot of issues here.

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