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Alabama Tax Law Questions & Answers
1 Answer | Asked in Tax Law for Alabama on
Q: My house and land were sold to another person for taxes. The person now holds a tax deed to.the property, do I have any

Means to get my land back?

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Jul 24, 2019

If your house and land have been "sold to another person for taxes" you may never get your land back--unless you buy it from the new owner. Had you repaid the amount the lien holder paid to the county--plus all interest accrued before the deed was issued you would not be in this position.... Read more »

1 Answer | Asked in Real Estate Law and Tax Law for Alabama on
Q: Taxation after selling a house

Will I be panelized on the sale of a house if I don't put all the money into buying another one? And how long do I have And how long do I have to buy a new one after the sale?

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Jun 26, 2019

The last time I looked, if the house is your residence, there is no tax unless the house was worth more than $500,000. Before relying on this advice you should check it out with your CPA or tax lawyer.

1 Answer | Asked in Tax Law for Alabama on
Q: I am buying my first home and want to pull money from my IRA to do renovations. Will I have to pay a penalty?
Bruce Alexander Minnick
Bruce Alexander Minnick answered on May 23, 2019

Withdrawing money early from an IRA to renovate a house does not qualify as an emergency.

1 Answer | Asked in Tax Law for Alabama on
Q: I need help with alabama state taxes. they say I owe $154,000. I live on social sercurity. I need pro bono help.

I was told it needed to be paid in 11 days. Please help

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Apr 9, 2019

If the state of Alabama is coming after you for $154,000 in back taxes you must surely have more than sufficient resources to hire a very competent lawyer to help you get out from under the hammer above your head. Stop asking for pro bono help on this open forum. Try searching through the many... Read more »

1 Answer | Asked in Estate Planning and Tax Law for Alabama on
Q: Can my husband and I give our son a house that we own. Do we just sign the deed over to him without tax problems?
Eric  Day
Eric Day answered on May 16, 2018

You can sign over your house to your son, however, I would look into doing it in a few ways. If you sign the deed over to your son this can be considered a gift. You as individuals are allowed to give a gift in the amount of $14,000 each to anybody throughout the year tax-free. So you and your... Read more »

1 Answer | Asked in Tax Law for Alabama on
Q: My step daughter has been proposed to by a guy that owes the IRS about ½ a million dollars in back taxes.

What would her liability be if she were to marry him? She has a retirement on her current job. Could they touch it? Or her house? Car? How could she protect her assets from the IRS coming after them to satisfy his tax debt?

Thank you.

Linda Simmons Campbell
Linda Simmons Campbell answered on Apr 23, 2018

Please note, I am answering this question as if your daughter will reside in a state that does not have community property laws. If she does this answer will not apply.

If she did not file a joint return with him, she will not be liable for any of his tax debts. Having said that she...
Read more »

1 Answer | Asked in Real Estate Law, Tax Law, Family Law and Adoption for Alabama on
Q: If my mother was left property but passed before she gained ownership of the property who dose it belong to now?

Property was my grandparents,left to my mother,sold in a tax sale for pass due property taxes while in a lengthy probate case on all property of my grandparents and then she passed before claiming the property who now has the rights to claim the property also she had no will and I was adopted by my... Read more »

Mr. James Parrish Coleman
Mr. James Parrish Coleman answered on Mar 25, 2018

I am assuming the property is in Alabama. The right to redeem on the property goes to the person who holds a mortgage on the property or to the person who owned the property at the time the tax sale was held. If that person has died, then the right devolves to the person's heirs at law. You... Read more »

1 Answer | Asked in Tax Law for Alabama on
Q: How long can the IRS prevent funds from going into my bank account?

Short version is the company I used to work for is being investigated by the IRS. There was a settlement reached between us from them not paying me. During this time, I was not able to file taxes. Now apparently I have to be cleared of fraud and my account is frozen so I can't deposit my... Read more »

Linda Simmons Campbell
Linda Simmons Campbell answered on Mar 20, 2018

There is not enough detail here to give you an accurate answer. You really need to contact a tax attorney, particularly if there is any fraud suspected by the IRS. Most of us offer a free consultation. Just stay away from the places you see advertised on tv.

1 Answer | Asked in Contracts, Estate Planning and Tax Law for Alabama on
Q: deceased husbands will left all assets including marital property to his son. I received one half retirement. Need help.

i cared for him with cancer with very little help from his son since 2003. He then threatened me physically demanding I sign off on his retirement. I was left 1/2 the retirement and 12,500.00 life insurance. He gets the bedroom suit I sleep on and I get one tv. I owned my mobile home and car or I... Read more »

Mr. James Parrish Coleman
Mr. James Parrish Coleman answered on Mar 19, 2018

You need some help here. You are confusing terms of divorce (marital property) with an estate. The only property that is the property of your late husband's estate is his separate property. You need to get to a lawyer and find out what your rights are.

1 Answer | Asked in Estate Planning, Tax Law and Probate for Alabama on
Q: Does a bank account with joint owner automatically pass solely to surviving party?

My grandmother has a bank account which listed my father and uncle as joint owners with right of survivorship (added after my grandfathers passing about 10 years ago). My father recently passed so only my uncle remains as a joint owner. At my grandmothers passing will the account be wholely owned... Read more »

Jack T. Carney
Jack T. Carney answered on Mar 4, 2018

The best answer is unfortunately the most common one in the law ... “it depends.” Alabama has an entire act about joint accounts and there are many cases about situations like this one.

The presumption is that uncle is the owner. That presumption may be challenged and the Will may be...
Read more »

1 Answer | Asked in Bankruptcy and Tax Law for Alabama on
Q: If I file for bankruptcy in alabama am I still libel for taxes if I did not specifically dissolve the S-Corp

I filed bankruptcy in 2010 and the Morgan County court placed the business in Bankruptcy in 2011. I thought I had it worked out but went ahead and filed dissolution a couple of months ago. Now the state has notified me that I am libel for 2012, 2013, 2014, 2015 and 2016. I don't have the... Read more »

Rafael Gil III
Rafael Gil III answered on Mar 2, 2018

If the S-corp filed for chapter 7 bankruptcy back in 2011. It, in essence, dissolves the company. I would contact the State of Alabama Dept of Revenue and provide them with paperwork that shows that the corporation filed for bankruptcy prior to those years and that it did not conduct any business... Read more »

1 Answer | Asked in Tax Law for Alabama on
Q: Okay well my daughters father owes childsupport and when it’s around tax time I never receive anything from his taxes.

The irs saids that they can’t do anything and my dhr worker told me she can’t do nothing about it either. What can I do since he’s way behind on childsupport .

Michelle D. Wynn
Michelle D. Wynn answered on Jan 5, 2018

Typically if your child support enforcement case is being handled by the child support enforcement division they can obtain orders that allow for garnishment of any back child support from the father (or mother). The child support enforcement agency would send this order to the IRS and the IRS... Read more »

1 Answer | Asked in Real Estate Law and Tax Law for Alabama on
Q: If you signed a quit deed on property in 2010 can a tax foreclosure be held against you now in 2017.
Samuel G McKerall
Samuel G McKerall answered on Dec 17, 2017

It shouldn't but it might. The only way to tell if it did is to examine your credit report from all three major credit reporting companies. If it shows on there you should submit a written explanation to the credit agencies. They have to place it in your file. Will they place it in your... Read more »

1 Answer | Asked in Tax Law for Alabama on
Q: Do plug-in electric vehicles qualify for a tax exemption under Section 40-9-1-(20) of the Code of Alabama?
Barbara H. Agricola
Barbara H. Agricola answered on Oct 6, 2017

if the vehicle is brand new, a tax exemption of up to $7k is allowable under the federal tax laws.

1 Answer | Asked in Tax Law and Real Estate Law for Alabama on
Q: Ibought a lot next to me in a tax sale,which owner live,s out of town.Mean while he sold me the land plus the tax,s .

When the tax sale came up owner live,s out of town so I paid them so no one would get it.He came back for visit and he sold me the land plus tax,s.I let my money stand for payment of tax,s.I then had lawyer draw up papers to be signed by me and owner.Took to court house and put land in my name and... Read more »

Mr. James Parrish Coleman
Mr. James Parrish Coleman answered on Sep 14, 2017

You say you had your lawyer draw up papers. You should be talking to your lawyer. If there are back taxes on the land you have to pay them or a tax buyer will pay them and get a tax certificate and later a tax deed to the property. Go back to your lawyer and get him or her to explain this to you.... Read more »

1 Answer | Asked in Tax Law and Real Estate Law for Alabama on
Q: I bought a tax lein property from tax sale,owner sold it to me.I had title put in my name,sould I have to wait 3yrs.

I need to know if I legally own land,or do I wait 3 yrs to own it?It joins my land want to make it as one.I am 74 yo and pay no property tax,s.Owner sold to me after tax sale.Jefferson County ala.I am told I will have to pay tax,s and owner could possible get it back for tax,s. THANKS

Mr. James Parrish Coleman
Mr. James Parrish Coleman answered on Sep 14, 2017

This is a very trick area of the law. It works like this (basicly) When a person fails to pay taxes on land after a certain period, anyone can pay the taxes. That payor gets a tax certificate to the property. After three years, that person gets a tax deed to the property. DON'T be fooled into... Read more »

1 Answer | Asked in Tax Law for Alabama on
Q: I have a federal tax lien against me from unpaid (and disputed) 2004-2005 personal taxes.

The taxes were assessed in 2006. I went through a Chapter 7 bankruptcy in 2009 (whole process took four months). At the time of the bankruptcy, I had years of unfiled returns, but got them caught up to qualify for filing chapter 7. I read the 12 reasons why the collection statute expiration date... Read more »

Michelle D. Wynn
Michelle D. Wynn answered on May 26, 2017

When the IRS files tax liens, they contain a date on which they automatically release. If that date has now passed, then the lien is released even if the IRS has not filed an actual release on your property records. If you are unsure of the date listed on the lien, you can see a copy of it, usually... Read more »

1 Answer | Asked in Immigration Law, Tax Law and Health Care Law for Alabama on
Q: As a co-sponsor of my brother's wife, am I in any way responsible for providing insurance, or penalties, under ACA?

My brother, a US citizen, is moving back to the US with his wife, a non-citizen, and children after many years spent in Japan. Since he doesn't have an income here in the US, yet, he needs a co-sponsor for his wife. I understand that according to the Affordable Care Act she is required to have... Read more »

Kyndra L Mulder
Kyndra L Mulder answered on Apr 23, 2017

Your responsibilities are stated in the instructions and body of the I-864 Affidavit of Support;

1 Answer | Asked in Criminal Law and Tax Law for Alabama on
Q: Hi, what can my son do to get his tax refund that was directly deposited in his girlfriend bank account?

She filed his tax return online with H&R Block. And she was told to have his refund directly deposited into my bank account like she did last year. But instead she had it sent to her account. And now she refuse to give it to him.

Michelle D. Wynn
Michelle D. Wynn answered on Mar 2, 2017

It sounds like you are stating she filed his tax return without him being present to review and approve the return or authorize its filing. This is very unusual without a specific Power of Attorney authorizing her to do so. However, since it sounds like she was authorized to do this by your son,... Read more »

1 Answer | Asked in Tax Law and Business Law for Alabama on
Q: Are Alabama Non-Profit Corporations tax exempt? Are donations made to them tax-deductible?
D. Mathew Blackburn
D. Mathew Blackburn answered on Dec 6, 2016

When properly established non-profit entities are exempt from federal and state income taxes, property tax, personal property tax, and state sales and use tax on purchases. They are still subject to employment tax withholding, sales and use tax withholding on sales of goods, and excise taxes. For... Read more »

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