Ohio Tax Law Questions & Answers

Q: Can you go to jail for filing an incorrect number on your business's tax returns if it was an honest mistake?

3 Answers | Asked in Tax Law for Ohio on
Answered on Dec 4, 2018
Linda Simmons Campbell's answer
File an amended return. The IRS does not criminally prosecute for honest mistakes. They are looking for cases of fraud or tax evasion. If you file and amend your return, you can request a one-time penalty abatement if you end up owing. It is a one-time abatement so I would not use it for a small amount. If you wait until you are audited you will get hit with higher penalties and it is more difficult to get the abatement.

Q: how would we go about buying a foot of property from the neighbor if our house was built a foot on their property

1 Answer | Asked in Land Use & Zoning, Real Estate Law and Tax Law for Ohio on
Answered on Nov 15, 2018
Joseph Jaap's answer
To resolve that encroachment, you will need to retain an attorney to assist you, and the neighbor would have to cooperate. You also will need a boundary survey, and there could be issues with zoning setbacks. Building a house over a property boundary is very rare. Many things had to go wrong to allow that to happen. Use the Find a Lawyer tab to retain a local real estate attorney to assist you.

Q: Would an international student who works here have to pay taxes?

1 Answer | Asked in Tax Law for Ohio on
Answered on Oct 23, 2018
Matthew Williams' answer
Yes...and should be cautious, outside of work study, employment may be a violation of the terms of the student's visa.

Q: I own property in OH, paid cash. Tax exempt to transfer property to LLC, which wife and I are members? Which exemption?

1 Answer | Asked in Real Estate Law and Tax Law for Ohio on
Answered on Sep 20, 2018
Joseph Jaap's answer
Choice 5(m), and you must provide an affidavit with all the details. Talk to your county auditor for details.

Q: I have a land contracted house that my mom purchased 8 yrs ago. If we sell will she have to pay capital gains tax?

1 Answer | Asked in Contracts and Tax Law for Ohio on
Answered on Jun 22, 2018
Joseph Jaap's answer
Whether there is a capital gain, and whether she pays tax on it, depends on all the facts and her financial circumstances. She should consult a tax professional who can review the facts and advise her.

Q: We want to use funds from my IRA to pay a $5000 medical bill. What are the tax consequences

1 Answer | Asked in Tax Law for Ohio on
Answered on Jun 14, 2018
Eric Steven Day's answer
If you distribute from your IRA to pay medical bills, the distribution would be considered taxable income and be subject to income taxes at your normal income tax rate. You don't have to pay a 10% penalty for the early withdrawal once you have reached the age of 59 1/2. However, even if you were going to be penalized for the withdrawal, there is also an exemption from the 10% penalty if you distribute from the IRA for medical purposes. It would be important to know whether the IRA was a...

Q: Can I deduct child support payments on my taxes?

2 Answers | Asked in Tax Law for Ohio on
Answered on Jun 9, 2018
Linda Simmons Campbell's answer
You cannot deduct child support payments. You can only deduct alimony, which is in turn taxable to the person receiving the alimony. I have seen some divorce agreements set up as unallocated alimony and child support. That means that you may be able to deduct almost all of the payments as alimony, however, this is rare.

Q: inherited a 401k as a beneficiary. what is the best way to handle it? was told to set up an inherited 401k plan, take

1 Answer | Asked in Tax Law for Ohio on
Answered on Jun 6, 2018
Eric Steven Day's answer
I am not sure what deductions you would be allowed with an inherited IRA. However, you can roll the 401K into an inherited 401K that will allow you to stretch the distributions from the plan based on your life expectancy. Sometimes, the inherited 401k requires that the whole amount is distributed within a 5 year- period so it somewhat depends on the rules associated with the 401k you inherited. However, I would roll it into an Inherited 401K and begin making the distributions over your life...

Q: I bought a condo for my daughter to live in during college.(owned under my LLC) Would it benefit me to list her as

1 Answer | Asked in Business Law and Tax Law for Ohio on
Answered on Jun 5, 2018
Eric Steven Day's answer
It seems that if you paid her (a deduction) so that she could pay you rent (income), there would be some sort of wash there with the income offsetting the deductions. The way this might benefit you, is this could then be treated as a rental and you would be able to depreciate the property. However, for her to be considered an employee, there would have to be some business purpose that she is performing on behalf of the LLC.

Q: I don't know what to do about 2 different letters I got from the IRS after being audit?

1 Answer | Asked in Tax Law for Ohio on
Answered on Apr 23, 2018
Michelle D. Wynn's answer
You should respond to the March 26th letter and provide the information again. Even though the inquiries are being handled by the same department at the IRS, it is quite likely that they have not associated the two years in their system and if you do not respond to the March 26th letter, they will likely disallow the EIC for that year and send you a notice that would require you to petition Tax Court to get the matter resolved.

Q: company A transfers money from Company B into Company A's bank account #1 and then Company A transfers that money back

1 Answer | Asked in Tax Law, Business Law and Employment Law for Ohio on
Answered on Mar 20, 2018
Joseph Jaap's answer
Who is telling you to do that? If it is the company's attorney or accountant advising you to do this, get a second opinion if you are uncomfortable. As president, you have certain fiduciary duties under Ohio law, and so the company should have both an attorney and a tax adviser to provide appropriate advise when such questions arise. Use the Find a Lawyer tab to retain a business attorney to represent the company in its affairs. The attorney can probably recommend a business tax accountant.

Q: I did not file Ohio Federal and state taxes for 2013, 2014, & 2015. What are the consequences for this action?

1 Answer | Asked in Tax Law, Civil Rights, Federal Crimes and Municipal Law for Ohio on
Answered on Mar 2, 2018
Linda Simmons Campbell's answer
If you owe taxes you will be assessed penalties including failure to file, late payment, and possibly underwithholding as well as the interest due. File the returns and then request a penalty abatement. The IRS usually will grant an abatement request for the first year or if you have a compelling reason for not filing your taxes, they may grant you one for all years. If you cannot pay the amount due, you can request a collection alternative. If it a substantial amount that you cannot pay...

Q: My husband and I have agreed to a divorce and to file our taxes separately this year. He is now threatening to sue me.

1 Answer | Asked in Divorce and Tax Law for Ohio on
Answered on Mar 1, 2018
Joseph Jaap's answer
What does it mean that you "agreed to a divorce." That sounds like there is no divorce filed, and your spouse is bullying you. If you have not yet filed for divorce, then use the Find a Lawyer tab and retain and attorney to proceed with filing for the divorce ASAP. The divorce process will determine how you will be filing tax returns. You both can file for an extension of filing 2017 returns until that has been resolved. Don't let him bully you with threats. Get your own attorney, and...

Q: If I owe back taxes I know they will take 15% but I also owe the VA hospital will they also take 15%

1 Answer | Asked in Tax Law for Ohio on
Answered on Feb 24, 2018
Linda Simmons Campbell's answer
Your social security cannot be garnished more than 15% in total. With the exception of the IRS (who can always take 15% regardless of the amount you receive) a levy on your social security to repay a federal debt can not leave you with less than $750 a month.

If you owe taxes to the IRS and your only source of income is social security, there is a good chance that you can work out a collection alternative with the IRS. I recommend that you seek the advice of a good tax attorney....

Q: I wanted to know about laws on filing someone as a dependent if they don't or hasn't lived with you or cared for you

1 Answer | Asked in Small Claims and Tax Law for Ohio on
Answered on Feb 16, 2018
Joseph Jaap's answer
You need to talk to a tax advisor. Tax issues are complicated, and depend on your specific situation that your advisor will have to analyze to be able to give you any answers at all. The IRS has very specific criteria for claiming a dependent.

Q: I gave my ex the right to claim our daughter on taxes even though i am custodial parent. my daughter turned 18

1 Answer | Asked in Tax Law for Ohio on
Answered on Feb 7, 2018
Joseph Jaap's answer
That is a tax question. Ask your tax accountant about rules for claiming a dependent. If both you and ex claim her, then the IRS could get involved, and they will determine who is the proper claimant.

Q: Can the father still claim children on taxes if he is behind on child support?

1 Answer | Asked in Child Custody, Child Support and Tax Law for Ohio on
Answered on Feb 5, 2018
Joseph Jaap's answer
Two different questions. If he has not paid child support, file for contempt with the court. If the parenting agreement says he claims them as dependents, and he does, but he has not provided sufficient support per IRS, then that's for the IRS to deal with. Talk to your attorney and your tax accountant.

Q: Filing taxes single mom with one child

1 Answer | Asked in Child Custody, Child Support, Family Law and Tax Law for Ohio on
Answered on Jan 24, 2018
Joseph Jaap's answer
If you were not married to the father, or there is no court order regarding custody, and a court has not ordered father to pay child support, then the father has no legal relationship to the child, and the mother is the sole custodian of the child and claims the child. If father provides some support and does claim the child, then the IRS might question if his claim is valid. Check with a tax preparer.

Q: Can my ex husband claim all 3 kids even if our divorce paper work says I claim 2 and he claims 1 and vise versa per year

1 Answer | Asked in Child Custody and Tax Law for Ohio on
Answered on Jan 23, 2018
William N. Sosis' answer
He can file for 3 but will have to answer to the IRS if you have an order showing he's only supposed to file for 2. If you file your return correctly (according to the court's order) and he doesn't, he may be liable to the IRS for fees and penalties. You can also file an enforcement motion and ask for attorney fees. Contact an attorney who offers free consultations.

Q: I pay local tax in both my work an resident cities. My resident city refuses to give me credit for tax paid where I work

1 Answer | Asked in Tax Law for Ohio on
Answered on Jan 3, 2018
Matthew Williams' answer
Most cities don't give credit. It is a matter of local law. Read the tax ordinances. They don't have to credit you unless the law says so.

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