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Massachusetts Tax Law Questions & Answers
1 Answer | Asked in Tax Law for Massachusetts on
Q: I have an irs question

regarding 433b-----during the period that the IRS is looking at---my business sales has increased significantly -but my business expense----marketing has increased also---dollar for dollar. The 433b is being used as part of a oic or possibly payment plan. Will the irs have an issue if in view of... Read more »

Linda Simmons Campbell
Linda Simmons Campbell answered on Mar 21, 2018

If you ask your question we may be able to answer.

1 Answer | Asked in Real Estate Law and Tax Law for Massachusetts on
Q: Under general laws chapter 59 section 38D can they charge me 50 dollars if I do not have info to them in sixty days?

Above ? Is on real estate I purchased recently. Do I need to let assessor come into my home to inspect? All my years in buying and selling I never encountered this infringement on my privacy before or been threatened to be charged money if I don’t comply with the asssessor request.

John Espinosa
John Espinosa answered on Feb 21, 2018

Under the plain language of the law itself, they do have the authority to charge a $50 penalty if you do not provide them the information required for them to assess the residential property: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter59/Section38D

1 Answer | Asked in Child Custody, Divorce, Family Law and Tax Law for Massachusetts on
Q: By the judge altering the custody of my children to me. Does that change the divorce agreement to allow me to claim kids

If the divorce agreement we split the tax exemption on the 2 kids. By getting full custody and the visitation up to me for the ex. Does that allow me to claim both kids on taxes for the exemption? I'm from mass and she pays no child support

Lillian J. LaRosa
Lillian J. LaRosa answered on Feb 15, 2018

You will either need to have a Modification Agreement on that issue which can be filed with the Court as an uncontested proceeding. otherwise you will need to have a Modification on that issue and also should have an appropriate Motion before the Court if this custodial change happened in 2017, to... Read more »

1 Answer | Asked in Tax Law for Massachusetts on
Q: What is the fine if I claim exempt on my federal taxes with the intention of paying them at the end of the year?

So no federal taxes will be withheld and I would send a check when I file at the end of the year.

Linda Simmons Campbell
Linda Simmons Campbell answered on Jan 25, 2018

If you do not have taxes withheld or pay estimated taxes you may be charged an underwithholding penalty. If you owe less than $1,000 then you will not be charged the penalty. If you make some payments but not all then you must have paid at least 90% of the tax for the current year or 100% of the... Read more »

1 Answer | Asked in Employment Discrimination, Employment Law and Tax Law for Massachusetts on
Q: I settled an employer age discrimination/retaliation complaint in 2017...can I claim fees 2015-17 on my taxes

I filed a legal complaint shortly after quitting in 2015, and filed a MCAD complaint in 2016. The case was settled out of court in 2017

John Espinosa
John Espinosa answered on Jan 12, 2018

This irs does allow you to deduct attorney fees paid to recover in a discrimination claim on line 36 of form 1040

https://www.irs.gov/publications/p525#en_US_2016_publink100041600

1 Answer | Asked in Tax Law and Business Formation for Massachusetts on
Q: Where should I register the company in terms of taxes?

Hi,

I live in Boston, and I'm about to start a consulting firm, an LLC. My first customer is in Norway. Should I form an LLC in MA or in Delaware? since my business is purely international.

Jonathan R. Roth
Jonathan R. Roth answered on Jan 5, 2018

You should register it in MA as you are a MA resident. There is no tax advantage in being a DE LLC if you are the sole member of the LLC and reside in MA. Moreover, if you have a dispute and want to engage the MA courts, you will have to register the DE LLC in MA to do so and the cost will wind-up... 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

1 Answer | Asked in Civil Litigation, Tax Law and Divorce for Massachusetts on
Q: Do I need to give a copy of my LLC 1065 to ex-spouse or just my K-1, re exchange of tax return docs annually

If I understand correctly, the 1065 is an informational filing for the partnership. I receive a K-1 from this to use on my individual return to report my income, losses etc. Is my ex-spouse entitled to see the partnership's 1065 informational filing or is it even relevant to my return? He is... Read more »

Lillian J. LaRosa
Lillian J. LaRosa answered on Aug 8, 2017

You should review your Separation Agreement with your divorce attorney as soon as possible to make sure that you haven't obligated yourself to include this form in the exchange process.

1 Answer | Asked in Tax Law for Massachusetts on
Q: What is the time limit for the federal government to penalize you for a past year in which you underpaid?
Linda Simmons Campbell
Linda Simmons Campbell answered on May 19, 2017

That depends. If you filed a return the IRS normally has three years to audit the return. If there is a substantial understatement of tax (25% or more) the IRS has six years. If any fraud is involved there is no time limit.

1 Answer | Asked in Tax Law for Massachusetts on
Q: Can IRS take my money from my savings account even if its the only money I have to live because of a levy on 2012 taxes?

Im unemployed since 2011, and practically homeless, and that money was the only thing left for me to survive until I find a job. They had already withdrawn the money in september of 2016,

Linda Simmons Campbell
Linda Simmons Campbell answered on May 10, 2017

If the bank has not sent the money to the IRS then you can call the IRS and ask to be marked Currently Not Collectible based on your unemployment status. If they agree they will release all or part of the levy. You can also contact your local Taxpayer Advocate for assistance or a Low Income... Read more »

1 Answer | Asked in Admiralty / Maritime, Consumer Law, Gov & Administrative Law and Tax Law for Massachusetts on
Q: How can a state demand boat taxes and fee's from a boat owner who is not a citizen or legal resident of the state?

Massachusetts demands a boat excise tax and several fee's for using their waterways. Regardless the boat owner is not a citizen or legal resident of the state. This also means one cannot vote in the state because the person is not a citizen or legal resident. Examples Here: Boat excise tax; a... Read more »

Ali Shahrestani, Esq.
Ali Shahrestani, Esq. answered on Apr 18, 2017

In the same way you have to pay a highway toll when you're driving on the state roads, you'd have to pay boat taxes and fees for using the state's waters, regardless of residency/ citizenship. The state government is, proverbially, king of its castle. This is the basis of sovereign... Read more »

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 Massachusetts on
Q: can I file an extension until may or June, when I have paid 9 months on my student loans and come out of default?

So they don't take my refund I only made 20,000 for the year. Any way to get out of offset?

Ali Shahrestani, Esq.
Ali Shahrestani, Esq. answered on Jan 18, 2017

It's best to contact a CPA or tax lawyer directly about this question so they can review your related documents. The best first step is an Initial Consultation with an Attorney. This answer does not constitute legal advice; make any predictions, guarantees, or warranties; or create any... Read more »

1 Answer | Asked in Tax Law for Massachusetts on
Q: I owed taxes in 2011 i payed them in 2013 the state of mass.keeps sending me a bill even though they agreed it is payed
Jennifer Louise Long
Jennifer Louise Long answered on Jan 30, 2014

I would encourage you to contact MA and see what your liability was for 2011, what payments were applied for that year, and what (if any) balance remains.

You may owe for other years, or you many be getting billed for interest and penalties that have accrued. It is difficult to say without...
Read more »

1 Answer | Asked in Tax Law for Massachusetts on
Q: My father gave me and my sister his house before he died do we have to pay capital gains if we sell it
Smilie Gregg Rogers Esq
Smilie Gregg Rogers Esq answered on May 18, 2013

Property transferred by gift usually require the recipient to use the Donor's income tax basis. That carryover basis results in the preservation of built in capital gains. Had your father devised the property to you and your sister at death, you likely would have received a basis reflecting... Read more »

1 Answer | Asked in Tax Law for Massachusetts on
Q: I am trying to negotiate a forbearance on overdue excise tax bill, due to lengthy illness. Legal help?
Eric M Wiechert
Eric M Wiechert answered on May 6, 2011

It can be exceedingly stressful to manage these things yourself but the IRS has some helpful videos and pamphlets about the process that you may want to review before selecting a professional or trying to work this out on your own. Here is a link to the IRS videos that may be on point:... Read more »

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