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Question
Last year my taxes were done by Tax Express. They claimed my live in girlfriend, her two daughters, and two nieces as my dependents. All I supported and pervaded for at least a year. Now the IRS says I owe 15,000 dollars for doning so. The Tax Express people say don't reply. We can fix it by taking other exemptions. I want to do what is right. I thought they did my taxes according to rules. What to do?
Joshua,
Run, do not walk, away from Tax Express. You do not ignore an assessment letter from the IRS. In "fixing it by taking other exemptions" it sounds as if they are engaging in some illegal practices. I would suggest you contact a CPA or Enrolled Agent to determine how many of the dependents you are entitled to, bite the bullet, and pay the tax.
If you explain that Tax Express encouraged you to take these exemptions, you may be able to avoid any penalty, but interest will continue to accrue. The IRS cannot forgive interest.
Hope this helps.
John Stancil, CPA
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John Stancil, CPA
Expertise
I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 35 years. I am a member of the AICPA, National Association of Tax Professionals, and the Institute of Management Accountants. Visit my website at www.johnstancilcpa.com. Also visit my blog, www.thetaxdocspot.com. Prepare and file your own taxes at www.1040stancilcpa.com
Experience
I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CGMA, and CFM. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 30 years and have taught accounting and tax at the college level for over 30 years.
Organizations
AICPA, FICPA, IMA, NATP
Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly.
Education/Credentials
DBA University of Memphis
MBA University of Georgia
BS in Accounting Mars Hill College
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