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Showing posts from January, 2005

How can I find out about Federal and State Tax Liens?

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Question:
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Category: Tax and Taxation Law
Location: KS
Subject: Leins

I am getting ready to file my 2004 taxes and I want to know if there is a way for me to find out if there are any leins, judgements, etc against me that would prohibit me from receiving the amount of refund on my tax return (federal and state). Please advise. Thanks for your help.


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Reply:
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Category: Tax and Taxation Law
Location: KS
Subject: Re: Leins

Yes, you can find out if there are liens and judgments. The easiest way is to call you tax lawyer and have a judgment and tax lien search done. If you know you owe money to the state or IRS, you must assume that your refund will be taken for past due taxes. If the amount of refund is more than $200, you should increase your W-4 exemptions to reduce the amount withheld and increase your weekly take-home pay.

If you have more questions about the tax collection process, please see my website at:

http://www.taxeq.com/

I ho…

Wife is Liable for Husband's 401(k) Income not reported

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Question:
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Category: Tax and Taxation Law
Location: IA
Subject: Husband caused tax liability I was not aware of on tax returns

My husband filed federal and state tax returns that I signed, not knowing that he did not report income from the liquidation of his 401K plan and untaxed money from consulting work (neither of which did I know existed). The IRS and the State of Iowa has named me as equally liable because a joint return was filed. We are now separated but not yet divorced, because I do not have enough money to file for a divorce, and he said he is willing to be soley responsible for the delinquent taxes; however, he is now living out-of-state and is no longer employed. What can I do to avoid liability? He says he has contacted both the State of Iowa and the IRS to take sole responsibility, but I keep getting letters from both places. Help! I already do not have enough money from my own income to even pay for all of my living expenses. I tried to se…

W-2 Not Received by Jan 31

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Question:
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Category: Tax and Taxation Law
Location: IL
Subject: Employer not Delivering W2's by Jan. 31st?

My employer is not Delivering my W2's by Jan. 31st. Is there any action I can take or any taxpayers rights I have to retaliate against this?


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Reply:
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Category: Tax and Taxation Law
Location: IL
Subject: Re: Employer not Delivering W2's by Jan. 31st?

Sometimes, employers cannot provide W-2's by January 31. Most employees are understanding. If you are really in such a rush to prepare your taxes, you can get all of the necessary information from the "Year to Date" section on you last payroll stub for the year.

The real issue is usually the employee is expecting a large refund. That is the problem. If your expected refund is more than $200, you should file a new W-4 with your employer increasing your exemptions. This will increase your weekly take home pay and avoid unnecessarily large refunds. Why let the …

How do I change a Partnership to a LLC?

Hi Ron
My husband and I started a small business two years ago, as a partnership, and we would like to change it to an LLC. Could you provide advise as to how to go about doing this.
Thanks

Answer:

Have you filed US Partnership Tax Returns - form 1065, or do you file a Schedule C on your 1040? THe steps would be to:
1. Establish a LLC
2. Use the same EIN as the partnership
3. Transfer the business assets into the LLC.

Depending upon filing, there should be no Federal Tax. You may be subject to state and local taxes and registration fees depending upon the assets.
I would be happy to help you!

Ron Cappuccio

Divorce Court Order Does NOT Stop IRS Collections

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Question:
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Category: Tax and Taxation Law
Location: MO
Subject: Spousal Defenses

What are the different types of spousal defenses? In my divorce decree it states that my exhusband is responsible for all of the tax debt on the joint account we had. The IRS says that they will take all of my income tax return even though it was court ordered for him to pay everything.


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Reply:
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Category: Tax and Taxation Law
Location: MO
Subject: Re: Spousal Defenses

Unfortunately, regardless of the divorce order, you are personally responsible for all of the taxes in a jointly filed income tax return. Many Family Court Judges are ill-informed and believe the IRS must abide by their order allocating tax responsibility. The IRS can collect the balance from either you or your former spouse.

You should immediately contact a tax lawyer to determine your collection defenses and whether you might qualify as an "innocent spouse." Please see my web s…

Can IRS Garnish Wages for Taxes Owed only by Husband?

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Question:
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Category: Tax and Taxation Law
Location: IN
Subject: Back Taxes owned by Spouse

My husband owes back federal taxes. This occured before the marriage. Can the IRS take money from my wages to pay for my husbands past debt?


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Reply:
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Category: Tax and Taxation Law
Location: IN
Subject: Re: Back Taxes owned by Spouse

The IRS cannot garnish your wages. Nor can the IRS levy against your separately owned property. Nevertheless, the IRS take all of your joint bank accounts and jointly titled assets. In addition, the IRS can file a Federal Tax Lien against your husband which becomes a lien on any jointly owned real estate. This would make it difficult to sell without paying the IRS.

Also, if upon your death, you leave any of your assets to your husband, or if he is the beneficiary of any life insurance policies, the IRS can take this.

If you file a joint return, the IRS will take all of the refund and make you fight to get your port…

7 years of non filing with the IRS

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Question:
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Category: Tax and Taxation Law
Location: TX
Subject: 7 years of non filing with the IRS

I've learned that my husband of 8 years has not filed taxes with the IRS (married filing jointly). He continues to say that ''it's ok'', but I have always been the responsible person prior to this marriage. This is causing me great stress and he doesn't seem to care. What kind of trouble can I get into with the IRS for non-filing of taxes? What are my options now?


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Reply:
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Category: Tax and Taxation Law
Location: TX
Subject: Re: 7 years of non filing with the IRS

You can be in significant trouble both criminally and civily. You should file a tax return every year. If you had income, you are responsibile for filing your own tax return. Filing jointly is an option for married couples; it is not required.

The first thing you need to do is contact a tax lawyer, not an accountant. There is confidentiality for your…

FRanchise Fee Deductions

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Franchise Purchase and tax deductionsI purchased a franchise in a home inspection business in 2004. What are my options regarding filing my taxes for 2004? Can I deduct the whoel thing, mortize it, depreciate it, what?
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Depending upon exactly what you bought, there may be some current deductions, although some expenses, unfotunately, may need to be amortized. The purchase of short term supplies and expendible materials would be immediatey deductible. Equipment would need to be amortized over the life in accordance with the type of property. The franchise fee may be amortized over 14 years. You will need to consult a tax and business attorney to review the documents you signed and to determine the tax treatment.Some of the tax issues are discussed on my website http://www.taxesq.com/

Is there a Form to Dissolve a Limited Liability Company?

QUESTION:
Category: Business Law
Location: NJ
Subject: articles of dissolution

i need info on dissolving a 50/50 partnership in an LLC to protect my assets in the co. i wish to remove myself from the LLC, leaving my partner/member to either end the LLCand liquidate/split assesets or to transfer membership interests by selling it to her. i need to know all my rights and personal liabilties if any in this matter.need to know how to apraise the worth of the company( machinery,stock,materials) to find the true value of the company. do i need an attorney? i had invested personally 12,000.00 in the company at start-up 2 yrs. ago by purchasing equipment for operating the business.it was a 50/50 investment. we have a vehicle that was purchased by a third party that we have been making payments to (5 yr. loan). we are still paying on.no agreement was made in writing on this loan with my partners personal friend. need to know how that vehicle loan can be transfered to my partner. need to know …

Where do Telecommuters pay Income Tax

The New YorkCourt of Appeals will hear a case Wednesday that focuses on the question: To whom does a telecommuter pay state income tax? Although Thomas Huckaby of Tennessee does not live in New York, does virtually no work there and spends little time there, New York claims it's entitled to tax 100 percent of his income because his employer is based there. The case is being closely watched by other states striving to reconcile old tax codes with contemporary work habits. http://www.law.com/jsp/article.jsp?id=1104154542160