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Tax Law (Questions About Taxes)/Questions Answered by Expert Jay Allen Finn, CPA

Subject	Date Asked
claiming boyfriend as a dependent	12/12/2011
Q: Can I claim my boyfriend/partner living with me, who is a non-working foreign student, as a ... A: A dependent must be a U.S. citizen, U.S. resident, U.S. national or a resident of Canada or Mexico. ...
Statute of Limitations on Collection	11/29/2011
Q: If the statute of limitations on collection expires on some tax items while you are making payments ... A: Statues are 10 years as you seem to know and a year could drop off separately in an installment ...
Working abroad	11/7/2011
Q: Jay, Starting Dec. of this year, I will be working and earning income outside the US. I'm aware ... A: You will be allowed to claim the foreign earned income exclusion (not a credit) after completing 330 ...
taxable income?	1/2/2011
Q: My husband and I have an older parent living with us. We provide care for her and take care of her ... A: This would depend how much the person pays vs. the support cost provided. If more, no income is ...
Vehicle as Gift	4/21/2010
Q: My parents live in GA and wish to give a vehicle (blue book value $20K). I live in TX. I ... A: David, I do not believe there will be any federal gift taxes due since the amount is under the ...
delq. tax and refund	4/20/2010
Q: I know that the irs will take a refund when back taxes are owed, but there is a place on bottom of ... A: Edward, If I understand your question correctly you owe back taxes and are seeing if there is a way ...
Refund amount	4/19/2010
Q: My CPA did my taxes and E-Filed my return. According to what he did, I was supposed to be getting ... A: Tamara, The IRS may have made a mistake and deposited more than the amount due into your account. ...
Child Tax Credit	4/1/2010
Q: I was reviewing a 2009 tax return for one of my friend during the weekend. As I went through the ... A: Orlando, No he is not entitled to take the Child Tax Credit. To qualify, the children must be under ...
tax question	3/30/2010
Q: My wife is a RN working for an agency of home health care. She is paid by visit to the patients, but ... A: Roberto, It sounds like your wife receives a 1099-MISC instead of a W-2 at the end of the year ...
2008 CP2000 Notice	3/26/2010
Q: When filing 2008 income tax, my husband & I were told that we did not have to claim money we ... A: Janet, If you inherited money from someone's annuity plan you must claim the amount as income ...
tax question	3/23/2010
Q: My son claimed his girlfriend with her parents permission, and he paid 50 percent or more of her ... A: Tina, If the same person is claimed on more than 1 return the IRS will disallow one of the claims. ...
Self-Employment tax	3/22/2010
Q: In 2009, my wife, a Russian national with Lawful Permanent Residency, did one contract job for a ... A: Mark, Yes it can be split. The best way to do that would to have the $4,500 on 1 Sch C and the UN ...
Self-Employment tax	3/21/2010
Q: In 2009, my wife, a Russian national with Lawful Permanent Residency, did one contract job for a ... A: Mark, Your wife should include the $4,500 from the contract job on Sch. C. The income minus ...
IRAs	3/19/2010
Q: I have an inherited IRA and a Roth. I have received K-1 schedules for investments in both. Since ... A: Mike, If you received a K-1 you must report it on your tax return. The IRS received a copy of the ...
hardship disbursement	3/19/2010
Q: We took money through hardship disbursement from our 403b plan to buy a house. We used that money as ... A: Roy, You should have received a 1099-R from the company that manages your 403(b). There is a code ...
Partnership Loss	3/16/2010
Q: I just received a K-1 from a publicly traded ETF that I bought in 2009. Apparently the ETF is ... A: Jan, While you should include the K-1 on your 1040, in your case the IRS shouldn't care as long as ...
misc income	3/14/2010
Q: I am a retired flight attendant. I get a certain number of airline tickets each year. Recently, my ... A: Ann, If you received a 1099-MISC from your former employer as non employee compensation you should ...
1041 tax filing	3/13/2010
Q: My mother died 2/09. She had a living trust of which I am the executor. I have an ein#. I have ... A: Frank, Even though there will be a loss for the year you still must file a 1041. This is because ...
taxes	3/11/2010
Q: i used turbotax and when i checked to see if they was excepted it said sent to tax authorities... ... A: James, I am not familiar with TurboTax wording but I am assuming "sent to tax authorities" means ...
Mistake on Schedule C	3/10/2010
Q: I just noticed on my printout that on a Schedule C of 2008, that i didnt include the income, the ... A: Sallie, You should not face any large fines if the IRS catches the error as long as you included ...
Mistake on Schedule C	3/9/2010
Q: I just noticed on my printout that on a Schedule C of 2008, that i didnt include the income, the ... A: Sallie, The IRS may or may not contact this year. Typically, the IRS can question a tax return over ...
Mistake on Schedule C	3/8/2010
Q: I just noticed on my printout that on a Schedule C of 2008, that i didnt include the income, the ... A: Sallie, The IRS may say something about it but if you reported the net amount on your 1040 and paid ...
short sale report on tax	3/2/2010
Q: my ex and I sold a house last year as a "short sale" , prior to that my ex had been living there and ... A: Ann, There is not much more I can tell you. If you qualify for the exclusion of cancelled debt it ...
short sale report on tax	3/1/2010
Q: my ex and I sold a house last year as a "short sale" , prior to that my ex had been living there and ... A: Ann, Is sounds like when you sold the property the buyer assumed the past due property taxes. This ...
W-9 tax question.	2/26/2010
Q: Good morning Jay, I am becoming an independent contractor for the first time in Massachusetts, and ... A: Andres, I am not familiar with Massachusetts taxes however, 25% is a good amount to set aside for ...
Claimed	2/25/2010
Q: I lived at my sister's house last year and was unemployed. I collected 20k in unemployment and ... A: Bill, Your sister may have claimed you as a dependent because you were living with her. However, ...
Retention	2/25/2010
Q: Good Evening, I'm getting a retention bonus of $16,000...I claim 1 exemption currently. What can I ... A: Derek, This question is vague. I can't say how much because I don't know all of your information. ...
Self Employed, Leased Vehicle deduction	2/23/2010
Q: I'm self employed and looking at using the actual cash value for my leased vehicle deduction. When I ... A: Shara, I am assuming you use the cash method of accounting and not the accrual method. Under the ...
1099 C	2/22/2010
Q: Why should we have to pay the IRS anything for the debt removed if we couldn't afford to stay in the ... A: Judy, There can be a long discussion regarding this issue but I am going to keep it short. You ...
Schedule M	2/20/2010
Q: I am a retired federal employee, who receives a W-2 each year with my pension on it, ..my question ... A: Nick, You should qualify to receive the $250 credit as long as you do not also receive Social ...
Milage Write off	2/19/2010
Q: I am a volunteer for the boy scouts of america. I am continuously driving around and participating ... A: Dan, Yes you can include the miles on Sch. A, Itemized Deductions as long as they are charitable ...
Babysitter Taxes	2/19/2010
Q: I am a babysitter for my brother and sister in law, I baby sit the kids at my house. In total I have ... A: Katie, Since you are a babysitter you are considered self-employed. You should report the amount ...
Taxable income for pension payment disability	2/18/2010
Q: Im trying to fill out a friends taxes who is in a nursing home. She gets a pension from the state of ... A: Thelma, The amount of income that is taxable from the 1099-R is the amount in box 2a even though ...
1099-C Short Sale and Divorce	2/17/2010
Q: The house was mutually bought back in 1993 when we were married and both names were on the deed. ... A: Kevin, The Mortgage Forgiveness Debt Relief Act of 2007 allows taxpayers to exclude debt ...
Tax Question	2/16/2010
Q: I received an insurance Class Settlement in 2009 for the amount of $3,534. They also sent me a Form ... A: Peter, If you received a 1099-MISC you must report the amount as income. This is because the IRS ...
claiming foreign nephew	2/3/2010
Q: my husbands nephew is staying with us while he gets his masters degree. he is from iran, and is here ... A: Joan, Unfortunately you cannot claim your nephew. To be claimed as a dependent the person must be ...
1099-A Forms	2/2/2010
Q: I received this form on a rental property I had.Balance owing is 171,000 and FMV is 135,000. I paid ... A: Ronalee, The Mortgage Forgiveness Debt Relief Act of 2007 allows taxpayers to exclude debt ...
Federal tax withholdings	2/2/2010
Q: My wife just got her W-2 from a company where she work part time for 4 months. She noticed that her ... A: William, Yes it is legal for them not to withhold federal taxes. Your wife should have received a ...
1099-A	2/1/2010
Q: I've only received a form 1099-A. Balance of principal outstanding is $145,799.35 (box 2) and fair ... A: Alicia, The Mortgage Forgiveness Debt Relief Act of 2007 allows taxpayers to exclude debt ...
charitable donations	2/1/2010
Q: but i can not benefit by using this deduction on my taxes,but all the receipts are in my name so i ... A: Jess, Technically the donation has to be in the name of the person who is going to claim the ...
Tax Refund review	1/29/2010
Q: What does it mean when the IRS says "We have received your tax return and it is being reviewed?"? I ... A: Annie, There is no way to really tell what it means by your question. It appears that something on ...
Taxes	1/29/2010
Q: My mother live with us about 7 to 8 months a year then she lives with my sister the remanding ... A: John, To qualify as a dependent you must provide more than half (51%) of your mother's support. It ...
co owned home	1/28/2010
Q: I purchased a home with my boyfriend 10 years ago. He always took the mortgage interest and claimed ... A: Kristi, If his name is on the mortgage and he received the 1098 from the mortgage company he is the ...
1099-R distributions	1/27/2010
Q: I withdrew 100% of a Roth IRA last year. I rec'd a 1099-R yesterday and need to determine how to ... A: Jayne, It could very well be the case. If you entered in the distribution without entering in your ...
Reimbursement	1/26/2010
Q: I am a member of a church. We recently took a youth trip and I drove my personal vehicle on the ... A: Mike, There are 3 types of mileage reimbursement: Business ($0.50/mile), Charitable ($0.14/mile), ...
filing status	1/25/2010
Q: I recently moved in with my mother in January 2010. She already filed head of household which she ... A: Tre, If I understand your situation correctly, your mother filed Head of Household on her 2009 ...
Tax Withholdings	1/21/2010
Q: I just received my tax return for 2009 from my employer and found out that they did not take the ... A: Angela, Your employer should have withheld tax depending on how many exemptions you reported to ...
Earned income credit	1/20/2010
Q: Can I claim my dad's earned income? He's disabled and he didn't work all year long, my dad is not ... A: Lul, No you cannot, only your father would be able to get the credit, however, to be eligible for ...
Can My Husbands parents claim us on their taxes?	1/19/2010
Q: My Husband, Son and I have lived at my husbands parents house for a year, Can My Husbands parents ... A: Your husbands parents cannot claim all of you on their tax return. This is because you all are ...
Earned income credit	1/19/2010
Q: Can I claim my dad's earned income? He's disabled and he didn't work all year long, my dad is not ... A: Lul, You cannot claim another person's income as your own. Your father will have to file his own ...
retirement benefits, insurance annuity and wokers compensation	1/17/2010
Q: I am 44 and I retired from firefighting in July 2009 due to career ending injuries. I am not ... A: Christian, Your question is somewhat long and complex. However, the amount you rolled over is not ...
girl friends child	1/17/2010
Q: thank you for your time A: Marlon, Qualifying dependents must meet several tests. One of the test is the relationship test. ...
When can I report a loss?	1/16/2010
Q: I do graphic design, and last year, I had a couple of clients that just did not pay me. I did the ... A: Mike, I am assuming you use the cash method of accounting which means you report income when ...
incorrect SSN on K-1	1/14/2010
Q: I prepared a 1041 and I issued a K-1 to one of the trust beneficiaries and put the incorrect SSN for ... A: Jacquie, I am not positive on how to correct the K-1. I believe that you can amend the K-1 without ...
1099 vs w2 tax rate	1/13/2010
Q: I started a DBA under a holding company and for the first few months while I was getting the ball ... A: Joshua, The amount you earned on the 1099-MISC is subject to self-employment taxes as well as ...
question about taxes	1/12/2010
Q: divorce judgement says claim every other year and its my year 2 claim. the ex said she is claiming ... A: Gary, If you have a decree of divorce that shows that every other year you can claim your child as ...
Property Tax	1/11/2010
Q: I rented out property in 2009 and was wondering where I can deduct property tax on my tax forms. ... A: Michael, You are not allowed to use real estate taxes paid for a rental property in increasing your ...
SEP IRA Eligibility	1/10/2010
Q: I have been working at a large financial institution as a contractor for about five months. The ... A: No you are not self employed. If you were truly a contractor and not on a W-2 with taxes taken out ...
1099 employees	1/10/2010
Q: I have a restaurant and would like to start paying part of my employees with a 1099 at end of year ... A: I agree with your CPA. Only true contractors in business for themselves and not dependent on your ...
dependent?	1/9/2010
Q: My name is Mike, and i have a question about dependents. I have a 9 month old son and a stay at home ... A: File jointly (best tax tables). Take 3 dependents on page two of your return worth $3,350.00 each or ...
College Reimbursement	1/8/2010
Q: When I filed my 2008 taxes the 1098 I received from my school included both fall 08 and spring 09 ... A: Janelle, From your question it appears that you reported the total amount reported on the 1098 in ...
claiming someone on my taxes?	1/7/2010
Q: my mother has lived with me for the whole year and my question is can i claim her. she does get ssi ... A: Elsie, It appears you can claim your mother as a dependent as long as your mother lived with you ...
short sell and 1099 forms	1/6/2010
Q: We are attempting to short sell our home in Illinois and have been told by both banks, 1st and 2nd ... A: Steve, From what I have found on the topic it appears the program has been extended through 2012. ...
Personal Exemptions	1/6/2010
Q: I've never had to file my own taxes before and I am considering it for 2009 however I don't ... A: Leslie, If no other person can claim you as a dependent then you are entitled to a personal ...
Writing off commute to work	1/5/2010
Q: I live in Columbia, SC but work in Charlotte, NC. I make this 2.5 hour round-trip commute almost ... A: Murray, Unfortunately, you can't deduct these expenses. Commuting expenses between your home and ...
Form 8332	1/3/2010
Q: My ex-wife and I have joint custody of our son, however, he lives with her. I filled out 8332 so I ... A: It is not clear from your question whether you signed the Form 8332 or your ex-wife. It appears your ...
Employee Home office and travel expenses	10/22/2009
Q: My W2 employer assigned me to a 6 months project out of town in 2007, which was extended a month at ... A: Don, Yes your travel expenses are deductible as employee business expenses as long as you were not ...
1099 & Social Security	10/20/2009
Q: When I work with just a 1099, which means the empoyer does not have to match the taxes paid, how ... A: Monika, If you receive a 1099 your employer does not withhold taxes from your pay. In this case you ...
Long Term Travel	7/24/2009
Q: I work as a consultant who in 2007 was working at a client site for over 12 months in PA. My ... A: If they are deducting the AMEX card, they cannot put it in your W-2. It is an an accountable plan ...
1120 returns, IRS audits, CPA responsibilities	7/17/2009
Q: Our corporation has used the same accounting firm for the past 8 years. Not a move is made to ... A: CPA fees can be disputed especially if he is firing you as a client. I don't want to comment on the ...
CA Schedule D Capital Gains Audit - Notice of Deficiency	7/16/2009
Q: I'm in a bit of a bind and hope you can help me out. Around October 2008, I received a CP2000 ... A: I think your father is right. You need an IRS specialist. They have to explain their figures and if ...
Delinquint returns.. how best to proceed?	7/11/2009
Q: I have not filed taxes since 2000. I want to clear up these tax matters as soon as possible in a ... A: You ask several, but good questions. You may need to give me another day to carefully answer them. ...
nanny question SUB S corp	7/9/2009
Q: We have a Sub S corp and a nanny that takes care of our children, errands for the business, and ... A: If possible, you should separate business expenses and personal expenses. The time that she is ...
self employment/being a employee	7/7/2009
Q: I am self employed i work as a caregiver in elderly persons home.I work on my own,private duty and ... A: Your client is correct that you should be treated as an employee and not an independent contractor. ...
first time home buyer tax credit	7/5/2009
Q: I understand that if you are a first time home buyer but purchasing the house from a relative then ... A: You are correct in the fact that your son and daughter-in-law are no eligible for the First-Time ...
Inheritance tax	7/3/2009
Q: I am about to inherit money due to my mother's death. Do I have to pay State (PA) or Federal Income ... A: Both Pennsylvania inheritance taxes and Federal estate taxes are paid out of the assets of the ...
Gifitng of Series EE Savings Bonds to duaghter	7/1/2009
Q: My husband and I have accumulated over $40,000 in Series EE Savings Bonds- Most of which is ... A: Susan, One way that you can give the money to your daughter is to give the savings bonds to her as ...
nonemployee compensation	6/30/2009
Q: I received a letter from the IRS saying that in 2007 I reported $11,952. Their records show $12,282, ... A: A copy of all tax documents that the taxpayer receives is sent to the IRS. They take this ...
gift tax and reporting	6/28/2009
Q: Finn An elderly couple are without children who will help them with all sorts of little things. ... A: Lee, The person who gave the gift (donor) is required to file Form 709, "United States Gift Tax ...
tax on rental properties	6/26/2009
Q: I am single and I am trying to buy a house. So far I have two options: 1- Buy a big house where I ... A: Lyly, The tax liability under both situations would be computed by filing a Schedule E with your ...
estate account	5/7/2009
Q: Mr. Finn, thank you for taking the time to look at my question. my mother recently passed, my older ... A: You have created an estate where there may not need to be when. Close the accounts and amicably ...
Zero Taxes on Capital Gains	4/29/2009
Q: In 2009 I will be in the 15% tax rate. I own an office building that I can sell for $7 million ... A: Ellen, It sounds like you need professional advice. If you are in a 10% or 15% bracket,you are ...
Rent to Own	4/23/2009
Q: I have a second home in Myrtle Beach, SC. My cousin has offered to give me $20,000 down and pay ... A: Believe it or not this is very complicated to give you all the details. First you determine cost ...
taxes	4/21/2009
Q: Is it true that if I'm behind in filing my returns, that I'm only required to file the last six ... A: It is basically true. It all depends when you eventually file. You can pay an expert like myself a ...
Tax Write off- Stock Loss	4/21/2009
Q: A few years ago, I invested 25,000 in a start up company and was given a class B stock certificate. ... A: Yes you can but you are only allowed $3,000 per year to include any other capital losses you have in ...
Offer In Compromise	12/28/2008
Q: We submitted an OIC, and it was approved at 2 levels but it was rejected at the Regional Level. We ... A: The statute of limitation is what you are talking about is generally 10 years but is postponed for ...
Work from home tax deductions	12/25/2008
Q: Both me and my wife work from home full time, it is not a small business. We were looking over the ... A: You are allowed the deduction (one time, not double). Take from the person's business most ...
income increase	12/18/2008
Q: I had a vehicle repossed in 2004 I received a letter from IRS 12/18/2008 stating that the loan ... A: If You owe the $2,700 and set-up a payment plan, your refund will first go to pay 2007 back taxes. ...
deceased dependent	12/14/2008
Q: How do i claim my son who turned 18 in april 08, died in april 08, and also had his own income from ... A: You are allowed the exemption for any relative under 19 that lives with you regardless of their ...
tax Preparing NC	12/13/2008
Q: Today in the mail we were notified by NC Department of Revenue that our tax preparer filled out our ... A: Glenda, Probably holding a preparer liable for tax debt doesn't work. Revenue depts. also will not ...
Losing a Dependant	12/12/2008
Q: What is the cost of not claiming a child on your taxes - how is the financial impact calculated? My ... A: It depends. A dependency deduction is about $3,350.00 in 2008. If your top bracket is 15%, that's ...
capital gains	12/9/2008
Q: Is it true that you don't have to pay capital gains taxes if you make less than $65,000 a year? I'm ... A: John, That is not correct. If you are in a lower tax bracket (not enough information), you can pay ...
investment losses	11/26/2008
Q: I have lost a lot on an IRA and my 401. The investment people say (as they always do) "stay the ... A: SCOTT, You have no "taxable loss" to take on your IRA even if you move it trustee to trustee and ...
Independent Contractor	11/18/2008
Q: The first 5 months i was an employee and made $6000 but the last six months worked as an independent ... A: Office supplies and large office related purchases are deductible. If they are large items like a ...
back pension paid to ex	11/17/2008
Q: ordered by court to pay back payments of my pension in lump sum to ex.making payments to her myself ... A: If it is a payment of previously withheld taxes, than you can incur a loss and it is taxable to her. ...
S Corporation Owner Compensation	11/16/2008
Q: I have $225,000 net income in my S Corporation and I do not take a salary but I withdraw $118,000 ... A: Natalie, No it is not okay. You are avoiding Social Security. However, a Sub-S Corps. allows you ...
back pension paid to ex	11/14/2008
Q: ordered by court to pay back payments of my pension in lump sum to ex.making payments to her myself ... A: Possibly we still misunderstand each other. If she is not getting pre-tax income (or after tax ...
Large tax credit for donation to charity	11/14/2008
Q: I have a house that is paid for and can't sell it or rent it. If I would donate it to an authorized ... A: Kathy, You would be allowed fair-market value as a non-cash charitable tax "deduction" (not a ...
back pension paid to ex	11/13/2008
Q: ordered by court to pay back payments of my pension in lump sum to ex.making payments to her myself ... A: John, You do not have a loss because you never paid taxes on the amount to begin with. 2) It is ...
Business Vehicle Deduction	11/11/2008
Q: I purchased a 1959 Studebaker PU truck. I have my business sign on it. It advertises my State Farm ... A: Gary, Why not? I assume you bought it for cash since you didn't say differently. If you financed ...
Home Improvement/Itemized Deduction	11/7/2008
Q: Are substantial home improvements that increase the price of a home considered itemized deductions? ... A: Home improvements only increase your value when you sell and under present law it is unlikely you ...
Income Tax on Lawsuit	11/4/2008
Q: After an injury lawssuit is settled, and all medical bills, and attorney are paid, is income tax ... A: Joy, I am not so you should talk to your Attorney's tax advisor but you are only taxed on what you ...
a mess	11/3/2008
Q: i have not filed my taxes for the past 2 years as i am a 1099 contractor. I make 100K per year and ... A: Pam, The IRS does not believe in debtor's prison for a 2 year delinquency. Prison is mostly for ...
promissory note default and IRS	11/2/2008
Q: I lent my brother $450,000 to assist in his business and personal affairs. I have a promissory note ... A: Susan, As to garnishing your income of $1,000 a month and failing on your "Offer in compromise,?" ...
Land donation Disallowed	10/31/2008
Q: In 2006, my uncle donated a land to the city. He did claim a charitable deduction for the fair ... A: They can disallow the land deduction based on the "a final event clause." Also they can charge ...
Audit	10/3/2008
Q: I am being audited for the tax year 2006. I have not had my first meeting. During my preparation ... A: Pete, You did not tell me what specifically they are auditing or if you have adequate proof or ...
Deductions and audit	9/30/2008
Q: I had a question I was hoping you can help me with. I just got a letter from the IRS asking for some ... A: Michael, You should be concerned. Is this an office audit or a correspondence audit? It sounds like ...
1099	9/29/2008
Q: I am a salesman who receives 1099 wages from my company. I owe an outside rep compensation for a ... A: Nick, Absolutely and you do not need a tax # to do so. Simply go to IRS.gov and download ...
w4 questions	9/25/2008
Q: Both my spouse and I started new jobs. We have 3 children under 16yrs. I am not sure how to fill out ... A: KARIIN, It really doesn't matter what you put on a W-4 (there is no legality issue)unless you end ...
Relationship between EIN and SSN of the owner	9/12/2008
Q: I recently got an EIN to handle all my internet related business taxes. I was wondering how related ... A: Sam, The EIN is used for all business (a Schedule C Sole proprietorship is what I gather you ...
compulsory IRA distribution	9/10/2008
Q: My husband will be 70 1/2 this year, but he is still working full time. I have heard that he will ... A: Sophia, I am not the perfect expert so you might wish to also forward this to the question pool or ...
Mileage	9/8/2008
Q: In our business office we generally work 8-5 M-F. We are all salary Occasionally we need to come ... A: CHUCK, I may be giving you a narrow view but without deep research this does sound like a fringe to ...
DO i need to file Corporate Tax (no business yet)	9/7/2008
Q: I formed a corporation in NY in October 2007 and corporation has a FEIN as well. Due to other ... A: What about start-up costs and capital stock? Otherwise, you have no liability even with NY state. ...
Back taxes and social security	9/4/2008
Q: We owe for 941 taxes on a company we dissolved in 2001. Do these ever go away? Also, we are ... A: Such taxes never go away but may not plague your heirs or your estate. Your social security can be ...
Delinquent taxes	8/12/2008
Q: Normally I speak to Helen but I see she is on vacation. I failed to file the 1996 tax returen on ... A: Your plan 2 might work but you will have to have a long talk (and be on hold) with IRS. However, ...
taxes	8/12/2008
Q: If a corporation owes employee taxes and goes out of business is the owner still responsible for ... A: Absolutely yes. This is a very delicate situation to get into with IRS. Don't get behind period and ...
Mileage Reimbursement	8/9/2008
Q: We are sorry, but Carole Dunton wasn't able to answer yourI work for an IT Consulting firm who ... A: I WOULD SUGGEST A WRITTEN POLICY IN CONFORMITY WITH A STANDARD PRACTICE. I WOULD SUGGEST THAT THE ...
Per Diem Taxes	8/6/2008
Q: How, specifically, does one pay taxes on per diem? Thanks, sean A: Per diem is not really taxable nor deductible (your company deducts it) if in an accountable plan. ...
Tax Error	8/1/2008
Q: We recieved and Notice of Adjustment from the state and Fed. taxes because our accountant inputted ... A: I don't buff other accountants unless they knowingly prepare false tax returns which is what the IRS ...
Selling a home	7/28/2008
Q: If I sell a home and do not want to reinvest in another ] property for 6 -7 years because I am ... A: Under present law (and I emphasize "present"), will probably not change in 2009 at the earliest, you ...
taxes owed	7/25/2008
Q: wife said she filed in 1999, 2000, 2001, 2002. I found out that she didn't. We are now divorced and ... A: Response: 1999 is barred by IRS and in most cases, 2000 and even 2001 now,also. Get a good IRS ...
annuity	7/22/2008
Q: I have a small deferred annuity that I would like to donate to a qualified charity. Is there any way ... A: No-- You have to take the taxable event but can turn around and take a Schedule A itemized deduction ...
FILING STATUS	7/18/2008
Q: My husband passed away in june 2007. I filed my 2007 taxes as married. How many years does IRS ... A: if you have a qualifying child, you can extend the joint filing (I think only one year). However, ...
Tax on a Structured Settlement	7/18/2008
Q: I have a structured settlement and I am selling it to a company that buys these annuities. In the ... A: We need to determine if your original annuity or structured settlement is a taxable annuity; ...
Where Do I Start?	7/13/2008
Q: Jay- It's a mess. I havent paid taxes in over 7 years and the IRS has placed a lien for $28k. I ... A: Adam, Actually where you start is to check my website and give me a call but I don't know if I can ...
Are we liable for deceased Fathers taxes	7/11/2008
Q: My father in law died 4/2006. He had actually filled out his 2005 using turbo tax but I chose not ... A: Julee, This is my opinion only but it had come up once or twice. You should probably call IRS and ...
Rental Expenses	7/11/2008
Q: I am considering the purchase of a condo in Pasadena, CA, that will be a primary residence in a year ... A: Yes you can. As long as you utilize the Schedule E as explained (properly), losses can be taken up ...
S-Corporation and 1099-C	7/11/2008
Q: I have a small retail business with property under S-Corporation. I and my partner, each are 50% ... A: If it falls outside of the exceptions I explained, it can be claimed as a dividend on your personal ...
S-Corporation and 1099-C	7/11/2008
Q: I have a small retail business with property under S-Corporation. I and my partner, each are 50% ... A: Peter, A lot of issues. Let's sort them out. S corps become the flow-through issues of the ...
Rental Expenses	7/10/2008
Q: I am considering the purchase of a condo in Pasadena, CA, that will be a primary residence in a year ... A: Gary on yourIf you check the right boxes on your schedule (E on your 1040) such as "material ...
Needing form to ammend a tax return	7/9/2008
Q: I had to foreclose on my house that I had purchased through FHA. I failed to file the form to the ... A: Vicky, An amendment can be done on an "1040-X". It is available on 'IRS.Gov' or at your local IRS ...
1099C	7/9/2008
Q: a few years ago 1 of my creditors sent me a 1099C for about 70% of what i owed them my question is ... A: Eric: You can negotiate credit cards by demand that their goons charge-off your account for 30 ...
seller	7/8/2008
Q: Jay, I live in TX and my mother in-law has a house in which she bought form a indpended mortgage ... A: Larry, The 1098's are no problem but one should do a thorough investigation on the tax history of ...

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Jay Allen Finn, CPA

Top Expert on this page

Expertise

IRS Audits. All Collection Tax problems; specifically but not limited to, delinquent returns, bank levies, liens, garnishments of wages, Also specializing in Offer in Compromise. Limited to 1040/ personal tax issues Proud A+ member of the BBB!

Experience

27 years experience as a CPA in the IRS defense area following a position as an IRS Auditor in the oil and gas industries.

Organizations
Texas Society of Certified Public Accountants (Peer Assistance Committee), Houston Chapter of the Texas Society.

Publications
Submit your articles.com

Education/Credentials
BBA - Bachelors of Business Admin., Magna cum laude, Series 6 and 68 - Registered representative, Series 65 - Financial planner and Certified Public Accountant

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