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Tax Law (Questions About Taxes)/Questions Answered by Expert Mike Wellman

Subject	Date Asked
Claim Children on taxes	1/23/2012
Q: My husband has been divorced from his first wife since 2005. They had joint custody of the 2 minor ... A: First, it is puzzling why when you were awarded full custody that the sharing of exemptions was not ...
part time church organist taxes	1/3/2012
Q: My son plays the organ and piano for a small church on a weekly basis. They have not withheld any ... A: I am sure the church is treating him as an independent contractor. The link to our web site below ...
Streamlined OIC	12/14/2011
Q: Is a form 433-A or B still required with the Streamlined OIC? If so, what makes it streamlined? ... A: Basically, if you are under the IRS allowable for any category that has them, you do not have to ...
Audited Tax Return	12/5/2011
Q: If a return is audited and adjustments are required, should the taxpayer file an amended return with ... A: No, you do not amend your return as a result of audit adjustments - the audit process takes care of ...
Statute of limitations on Collection	11/29/2011
Q: What is the best way to determine when the IRS collection period ends for a particular tax year. I ... A: The easiest way is to call them and ask them. However, if your account has been dormant, it may ...
Personal Taxes	11/13/2011
Q: I live in Colorado and am wondering how much I can earn in a given year before I start having to pay ... A: For 2011, you can earn up to $9,500 before you have a filing requirement. However, you must file if ...
Tax on corporate dissolution proceeds	10/28/2011
Q: I was active shareholder in C Corp with one other shareholder. I left the Corp and cashed out my ... A: There is really not enough information to tell you much. I can tell you that if you were a ...
Filing 06 Taxes late due to Financial Disability	10/25/2011
Q: I was permanently disabled in a car accident in 05. I hadn't filed taxes for 06 through 2010 until ... A: Writing to the IRS is like playing Russian roulette. It really depends on the person who handles the ...
Offers in Compromise	10/20/2011
Q: I just presented an offer for a client who owes over $70,000 with penalties and interest. I began ... A: There is no way I can tell you if they are even candidates for an OIC without looking at the 433-A. ...
Cancelation of Debt - Tax Levy	10/9/2011
Q: I was issued a cancelation of debt in 2008 for repo my ex husband had in the amount of $7775. He has ... A: The levy should have been lifted at the time the installment agreement was entered into. However, if ...
Gross Receipts	9/20/2011
Q: My wife started a home based business so I find myself having to get up to speed on the Schedule C ... A: Your gross receipts are simply the total of how much you received from your customers PLUS the ...
Financial Disability	9/12/2011
Q: I know someone who suffered a complete psychological breakdown. She was incapable of handling her ... A: I need you to clarify things before I can answer. Please stop trying to speak in code sections and ...
filing past years income tax	9/10/2011
Q: I hate to admit but for many years I have not filed my income tax. I am trying to straighten out my ... A: First, do not have fear of any repercussions beyond owing tax, interest and penalties you may or not ...
1099-Misc Form	7/31/2011
Q: My daughter worked for a door-to-door magazine sales company for 1 year. She has now received a ... A: There are two issues here. The first is whether she should have been treated as an employee or an ...
unfiled taxes	5/5/2011
Q: I have not filed taxes in years, self employed.IRA left message on my phone with a case number. I ... A: You can do one of three things. (1) If you plan on dealing with the matter yourself, you should ...
irs refund	4/28/2011
Q: Per an IRS audit of 1008 tax, they say we owe around $4800 in additional taxes.We are still trying ... A: - If it is just a proposed adjustment and the formal assessment has not been made, they should not ...
Dependents	4/14/2011
Q: Can my boyfriend claim me as a dependent, if I do not claim myself on my tax return? I would claim ... A: I am afraid not. One of the tests that has to be met is the "Gross Income" test. For this test, the ...
injured spouse building Mutual Fund	4/7/2011
Q: My new husband and I filed jointly with an injured spouse form. (he has back taxes from prior our ... A: The IRS cannot come after your assets to satisfy his old tax debt. However, legally, if you use ...
Back Taxes and Death	4/4/2011
Q: My father owes the IRS back taxes. He makes payments to them monthly. The code on his statements ... A: No one becomes responsible for his taxes upon death except for his estate. Since he has no assets, ...
irs attached wages and divorce	4/4/2011
Q: My father is currently separated from his wife.During their marriage they incurred a very large ... A: First, if his wages are being garnished, that can be stopped very easily. After the divorce, the ...
Offer in Compromise	3/21/2011
Q: Mike, my combined family income is usually around $80k. I lost my job in 2010. Between severance, ... A: While it is not possible to tell you for sure if you qualify for an OIC without a complete analysis ...
estimated tax payments	2/26/2011
Q: im a sole proprietor and just started 3 years ago but i havent been making estimated tax payments. ... A: The 941 has nothing to do with estimated taxes. It is for employee withholding on wages. If you have ...
Form 433 Request for Payment Installment	2/25/2011
Q: after a couple years of audit and appeals my ex-husband and I agreed to pay the IRS of $45K for the ... A: It is not a defense that you signed the return without reviewing it unless he would not allow you to ...
Form 433 Request for Payment Installment	2/24/2011
Q: after a couple years of audit and appeals my ex-husband and I agreed to pay the IRS of $45K for the ... A: (1) The IRS does not put a lien on specific assets. They will file a personal and a real property ...
Deceased wifes back taxs	2/23/2011
Q: My wife died Dec 12,2010, we werr only married 3 weeks before she died. Am l liable for here ... A: No, you do not become liable for her taxes. However, if you elect to file a joint return, which you ...
ITT Contractor living in Afghanistan TAX	2/18/2011
Q: My father is a contractor in Afghanistan. He was previously in Iraq. For the past six years, he has ... A: Any income tax liability will be based on what income he has over the exclusion, his filing status ...
ITT Contractor living in Afghanistan TAX	2/18/2011
Q: My father is a contractor in Afghanistan. He was previously in Iraq. For the past six years, he has ... A: First, there is no way I can tell you what, if anything, your father may owe without the slightest ...
taxes	2/10/2011
Q: I have not filed taxes in quite some time. I am starting to get a little worried. What would be the ... A: I have many people come to me who have not filed in a few years and they are terrified of the ...
sub s corp taxes 2009	2/10/2011
Q: I just filed (and sent in my 2009 Sub-S corp.(4 months late with extension) and personal taxes ... A: Your returns will be processed as independent entities. Unless you have unfiled returns or owe from ...
IRA tax liability prior to divorce	2/8/2011
Q: Mr. Wellman, My husband had a Sep-IRA (in his name only) and took early disbursement of less ... A: If you filed a joint return with him in the year of the distribution, then you are both liable. If ...
Land	2/2/2011
Q: When our parents got divorced they gave us ten acres of bare land. Do we have to pay any kind of ... A: Gifts are not taxable to the person receiving the gift. Depending on the value of the land, your ...
cp 2000 notice	1/17/2011
Q: I just received a notice that i and my ex owe do to a w2 he did not submit. We are now divorced and ... A: A CP-2000 notice is just a proposed assessment. No tax has been assessed and it will be four to five ...
Not Claiming Child Care Credit	1/4/2011
Q: In February 2010, we advised our stay at home mom/daycare, that we planned to to claim her services, ... A: Of course it is not true. Your childcare provider is a simple tax cheat and should be reported to ...
Local office or Collections Customer Service?	1/3/2011
Q: When submitting a request to go into "currently not collectible" status, is it better to go through ... A: You deal with it where it is. This is determined by the last notice you received from them. Unless ...
Tax	1/3/2011
Q: I did not receive my 1099 for the past 2 years, I have asked several times and the latest thing she ... A: I would first ask your employer to try to estimate it. If she cannot, you are going to have to ...
Deceased husband back taxes	12/20/2010
Q: I just received a letter from the IRS ACS Support in Fresno, CA. My late husband had back taxes from ... A: No, you are not responsible for his back taxes. Furthermore they cannot come after your assets to ...
Offer in Compromise	12/1/2010
Q: my now ex-husband and I are currently in a CNC status with the IRS for 2006-2008 back-taxes he owes ... A: You will still be on the hook for any jointly filed taxes after he does an Offer. One option is to ...
disability income vulnerability to tax collection	11/13/2010
Q: I worked for my son's company. I was not a signer on any bank accounts. I became ill and left the ... A: Certain service related disability payments are exempt from levy. I cannot tell you for sure that ...
Property Tax Lien	11/10/2010
Q: Just had a tax lien file on my property in my name only which is own jointly by myself and wife. The ... A: They could sell the property but it is highly unlikely. If they did, they would also have to turn ...
Money owed to the IRS	11/9/2010
Q: Over the past few years I've recieved a few letters from the IRS stating that I owed them money. ... A: To find out what is owed, you need to order a Transcript of Account for every year you think you may ...
Employer Paid Delinquent Taxes and Partnership	11/8/2010
Q: I was in a partnership that the other owner did not pay the employer taxes to IRS. We now owe ... A: Your partner can offer to do whatever he wants. You can even enter into a binding contract that ...
what is taxable in the US	9/15/2010
Q: my husband work overseas as government contractor in Afghanistan the company told him that the first ... A: For 2009, assuming you meeting the requirements for foreign earned income exclusion, the first ...
divorce debt	9/14/2010
Q: My question is. i filled married and joint many years ago, when doing that my ex wife claimed her to ... A: I am not sure what you mean by "years later". The IRS only has three years from the due date to get ...
Offer in Comp & Delinquent Filing	9/9/2010
Q: My question related to a 2008 delinquent tax return and a Offer in Compromise. 1. I have not filed ... A: On the first question, you are in no danger of anything beyond interest and penalties on your 2008 ...
tax prep	7/12/2010
Q: Wellman, I am filling out an application 656 for an OIC. I need to file my 2008 year taxes. How ... A: I am sorry to take so long to answer your question but I was out sick a few days. The fastest way ...
Currently not collectable?	6/17/2010
Q: My sole source of income is Social Security, which is $1700/mo. The IRS is taking $850 and leaving ... A: The IRS is limited to only a 15% levy on social security benefits so I am curious as to how they are ...
will back taxes interfere with immigration	6/6/2010
Q: My husband is a US citizen and we are in the process of filing for my permanent resident status. The ... A: Yes, he can file the last three years. However, if he owes for those years and can't pay them all at ...
Release of Lien	5/19/2010
Q: Morning Mike. I have a Federal Tax Lien that was assessed in May 2000 (and filed Oct. 2000). There ... A: Liens are "self-releasing". The lien document itself contains language on it indicating that is is ...
marriage/tax liability	5/12/2010
Q: I reside in Tennessee.I would like to marry a wonderful woman also from Tennessee.The problem is ... A: Although getting married will make IRS collections a little trickier to deal with, her assets do NOT ...
Financial Disability - Statute of Limitations	5/10/2010
Q: I am in the process of filing returns going back to 1998. Almost all of the years would have been ... A: This is a fairly subjective area and it is very much facts and circumstances driven. Theoretically ...
tax exemption	5/10/2010
Q: My church has a number for tax exemption, but I'm told by a business where we need to purchase that ... A: There should be a form available on your state's website and/or at the local sales tax office that ...
OIC	4/26/2010
Q: When valuing real estate for OIC purposes, can you also deduct selling expenses (i.e. commissions, ... A: Those expenses are typically included in the 80% valuation. However, that said, if you can establish ...
tax	3/23/2010
Q: Last year I owed about 2,000 in taxes to the irs but could not pay it so they allowed me to enroll ... A: You may qualify to have your account put in a "currently not collectible" status. This is an IRS ...
Fines in another state	3/3/2010
Q: Can another state take my federal return this year although I have been filing for several years? A: Yes. The IRS has arrangements with most states for refund offsets. So if a state has an assessment ...
taxes not filed	3/1/2010
Q: I did not file taxes in 2004. I received a letter from the irs this week. If I should have paid in ... A: There is a penalty of 5 percent a month for failure to file and a penalty of 1/2 of one percent per ...
tax audit ....help	2/26/2010
Q: I am writing for my sister in SC. she and her husband are self employed and my sister keeps good ... A: Very little is likely to happen beyond additional tax and related interest and penalties. "Padding" ...
Changing IRS filing status for past years	2/25/2010
Q: Not sure if this question qualifies as "IRS problem," so if my topic is not appropriate for you, ... A: If he qualifies you for HOH status (I am not making that determination here) then you can amend the ...
gift taxes , donor and donee	2/21/2010
Q: If my sister in law gifts my wife,(her sister) with a cash gift of $ 15000; then will my sister in ... A: Gifts are never taxable to the person receiving them and they are never deductible to the person ...
Claiming a dependent with income	2/7/2010
Q: My child is 17 and made $5570 in 2009. I claim him as a dependent. Do I need to claim his income on ... A: No, you do not report his income. He must file his own return and indicate on it that he is a ...
Paid Church Musician	2/2/2010
Q: I play drums for a church in my area who pays me each weekend I play. They only ask me to play when ... A: You are self-employed and are considered a business as far as the IRS is concerned. Unless you ...
cancellation of debt	1/31/2010
Q: I received a 1099-c for a cancellation fo debt for a repossesed vehicle for 2008. I forgot to file ... A: Do not report it on your 2009 taxes. You can amend 2008 to include it using Form 1040X. If you ...
what next?	1/23/2010
Q: The irs says my 2010 refund is being held up by taxes owed in Georgia$263.00,pennsylvania$97.00.I've ... A: The IRS typically does not "hold" your refund for state taxes due, they simply offset the state ...
Liability For Prior Years Of Non-filing	1/9/2010
Q: Due to a long and disabling depression from which I am now emerging, I didn't file my taxes for the ... A: If you are able to full pay the liabilities for the last two years, that should be the end of it. ...
IRS Collection	1/5/2010
Q: I am a 100% service-connected veteran. I am unable to work and the IRS is trying to collect back ... A: Service-related disability payments are certainly non-taxable and exempt from levy. However, they ...
forged w2s	1/2/2010
Q: I currently found where my ex husband had forged his w2's for several years. We have filed jointly ... A: You cannot amend a joint return to a separate return. However, should the returns be audited and ...
Filing past tax returns	12/12/2009
Q: My husband passed away in March 09, and had not filed tax returns since 2005. I'm not sure the best ... A: I am sorry for your loss. You can file separately and avoid liability or you can file jointly. You ...
delinquent tax	12/8/2009
Q: How do I fight the IRS on taxes they say I owe from 1981? Our company CPA at the time filed my taxes ... A: It is very likely that you do not owe the money. The trick is in convincing the IRS that you don't. ...
tax fraud	12/3/2009
Q: I am in the process of a divorce.I have been separated for almost years.My wife and I have had a ... A: Tacit consent is a facts %26 circumstances situation so I can't tell you how the IRS might decide. ...
tax fraud	12/3/2009
Q: I am in the process of a divorce.I have been separated for almost years.My wife and I have had a ... A: There are certainly penalties for forging your signature but proving it and having it prosecuted are ...
back taxes of a deceased person	12/3/2009
Q: My father gifted my husband, myself and my two children 10,000 each before he passed away in 2008. ... A: Gifts are not taxable to the recipient. Any potential liability could only be established by a ...
Back taxes..	11/5/2009
Q: First I use to work for PWC in Chicago on the consulting side (SAP), just before the spin off, ... A: The fact that the taxes have already been assessed means that he cannot lay low if he has a bank ...
offer & compromise	10/23/2009
Q: I have submitted an offer and compromise to the IRS and have not yet heard back. I am planning on ... A: The times vary widely. You should allow 6 to 12 months from submission for it to be completely done. ...
offer & compromise	10/23/2009
Q: I have submitted an offer and compromise to the IRS and have not yet heard back. I am planning on ... A: Yes, you should wait to get married until your Offer in Compromise is resolved. Getting married will ...
Tax filing issues	10/5/2009
Q: We have not filed a return in 3 years due to some issues my husband is having with his SSN matching ... A: First, you are certainly not in any danger of jail. In fact, if you have had normal withholding or ...
Delinquent taxes	9/29/2009
Q: We did not file our federal taxes this year as we did not have the money and thought you could only ... A: You simply need to file the return and get into an agreement to pay the tax due. You can file Form ...
accounting from IRS	9/18/2009
Q: I gave the IRS $10,000 at the San Diego office two months ago. I still owe about $8,000 in back ... A: The IRS does not send acknowledgements of payments received. You can call (800) 829-1040 to find out ...
Tax refund due to deceassed relative.	8/28/2009
Q: A relative died in 2007. Upon settling her estate, the heirs discovered that she was owed nearly ... A: Any refunds that are due would belong to the estate and as such, would be paid to the administrator ...
mileage laws	8/12/2009
Q: I started working with my insurance company as an agent last august. I bought a new gas efficient ... A: I cannot say whether you will owe or not without all the details. Often the standard mileage rate ...
Major income tax problems...	5/28/2009
Q: I was divorced in Jan-2001...that year and the following years all up to 04' I have bulked together ... A: I have many people come to me who have not filed in a few years and they are terrified of the ...
IRS levy	5/22/2009
Q: The IRS has sent me a notice saying they may levy my SSI in 30 days. Can they use this levy letter ... A: A letter 1058 covers more than just your social security. A CP-90 is what is typically issued by ACS ...
Taxes Payment Plan New Laws	5/6/2009
Q: Do you know if it is truth that congress recently approved new laws that benefit people who are in ... A: Congress has not passed any laws on the subject recently. The IRS did announce a relaxed policy on ...
Tax Levy for 2003 tax	4/20/2009
Q: I haven't filed taxes since 2002. Apparently the IRS extimated my 2003 taxes and I didn't know ... A: Yes, you can file the actual return and it will replace the IRS assessment. However, this could take ...
Delinquent Filer	4/15/2009
Q: I have not filed income taxes since the 2003 tax year. I am expecting a refund for all delinquent ... A: The years prior to 2008 are delinquent and filing an extension will not change that so there is no ...
When Nothing Seems to Fit...	4/13/2009
Q: should you decide to answer this one. You better sit down though. In late 2002, I had been making ... A: Your situation is far from hopeless. There is no possibility of jail time either. The very worst ...
IRS Tax Lien on My Property	3/30/2009
Q: My ex-husband's and my divorce was final over two years ago. In the divorce, I received two ... A: First of all, even if the lien had attached to the property, the IRS would not "take" the property. ...
Tax audit	3/29/2009
Q: My ex husband is incarcerated. He informed me that they are doing an audit review of his taxes for ... A: First, who is doing the audit? The IRS cannot by law audit four years back, except in certain ...
Tax Lien	3/27/2009
Q: I am in the process of trying to get divorced. My husband left me and abandoned me financially. I ... A: Since your husband is an owner of the house now, the lien attaches to the property and remains until ...
Tax Lien	3/27/2009
Q: I am in the process of trying to get divorced. My husband left me and abandoned me financially. I ... A: If you were wanting to sell it, there is nothing you can do. However, the IRS recently announced ...
how do I find a preparer with experience in delinquent tax returns?	3/27/2009
Q: An accountant who said he had a lot of experience in dealing with the IRS and filing delinquent ... A: Well, I have to tell you that I have a conflict of interest here since delinquent taxes and ...
delinquent taxes and OIC	3/26/2009
Q: Last fall I filed 2005, 2006, and 2007 tax returns, and as such have a significant liability. I am ... A: (1) You can include the student loan payment on the 433-A, however, if you try to get into an ...
penalty abatement	3/19/2009
Q: Good afternoon, Wanting to respond to Irs to abate penalties. In 2007 payroll taxes were paid in ... A: There is just not enough information here to give you an answer. Penalty abatement are based on ...
repaying tax debt	2/23/2009
Q: I became disabled on February 15, 2009,I proceed to draw my short term disability then went on to ... A: When you get the bill for the tax due, you can get an installment agreement to pay the balance. ...
On Payment Plan	2/17/2009
Q: I was audited and it turned out I owed money in 2006. I signed up and was approved for the payment ... A: There is nothing to do on your tax return this year regarding payments made under your installment ...
deliquent taxes owed	2/17/2009
Q: I owe taxes of approximately $2500 (before penalties or interest) on my Federal Tax Return for 2005. ... A: There is no point in paying interest and penalties with the amended return because there is no ...
Spouse owes taxes	2/16/2009
Q: My spouse and I filed married for tax period 2005 & 2006, in 2005 my spouse failed to claim a 1099. ... A: They will not keep your refund if you did not file jointly. There is certainly no requirement that ...
Innocent Spouse Claim	2/13/2009
Q: I was married for thirty-four years. My husband passed away May 26, 2006. I learned that he had ... A: No you do not. You must meet all of the following conditions to qualify for "innocent spouse ...
Applying Tax Refund to Taxes Owed	2/12/2009
Q: I finally got caught up on my taxes using the services of a CPA. I owe the IRS $4000 from 2002 and ... A: The answer is straight forward, the refunds for 2003 and 2004, assuming they were caused by ...
Home Improvement	2/11/2009
Q: I have been hearing that certain home improvements are tax deductible. Is a new concrete driveway to ... A: Home improvements are not deductible unless you have a legitimate home-office situation and the ...
OIC & Form 433-A	1/27/2009
Q: I have questions about OIC Section VI, and Form 433-A, Section 4 and Section 9. According to the ... A: Filing and offer in your circumstances is tricky and really not advised. Your roommate of course ...
Haven't Paid Taxes in awhile...	1/26/2009
Q: I have a problem that I've let linger far too long mainly due to confusion or a lack of ... A: "1. I'm thinking now would be the best time to file but was unsure as to how to file since I have ...
tax laws for 1099	1/18/2009
Q: i work for a small maintenance company and they take no taxes out of my check. the checks are wrote ... A: Unfortunately, you will likely not get a refund and may owe a lot of tax because of the way you were ...
LIEN	11/6/2008
Q: I have a federal tax lien on my record from my ex-husband businesses dated back in 1987 thru 1992. ... A: Showing the IRS this paperwork will do no good. Contracts that shift tax liabilities do not bind the ...
941 S-Corp Question	11/4/2008
Q: I shut the doors of my mortgage brokerage firm in the summer of 2008. We were an s-corp in ... A: You can wait and see if they do not assert the penalty. Not likely, but possible. If the do, you can ...
941 S-Corp Question	11/4/2008
Q: I shut the doors of my mortgage brokerage firm in the summer of 2008. We were an s-corp in ... A: If the corp. can or won't pay the taxes, the IRS will likely assess what is called the Trust Fund ...
Tax withholding	10/31/2008
Q: My son is working for a company that pays him as a contractor with no taxes withheld. He receives a ... A: Yes he does. He also needs to understand what his filing responsibilities will be. Go to: ...
OIC	8/4/2008
Q: If a currently out of work, single (divorced) taxpayer that is seeking employment, but hasn't found ... A: If you are currently not employed, the IRS will look at the last three years of income, typically ...
K-1 question	7/23/2008
Q: I think I understand the function of the K-1 but I am being asked to provide this form to a person ... A: If she was a partner in 2007, she is entitled to a K-1 or a some statement showing her share of ...
Injured spouse deductions allotment	7/18/2008
Q: I am trying to fill out an injured spouse form, as I recently remarried and am not liable for my new ... A: If you itemize your deductions, enter each of your separate deductions, such as employee business ...
child support	6/29/2008
Q: I have been married a year, and my husband and i just filed joint taxes. My husband has to pay ... A: If his case has advanced to the stage where the IRS is involved - then the refund will likely be ...
IRS Lien on Property	6/26/2008
Q: The title search on the property my husband and I are in the process of purchasing (a short sale) ... A: The lien will only be released if the tax is paid or the IRS subrogates the lien. If there is enough ...
past year tax	6/17/2008
Q: I live in NY state. I didn't file my state and federal tax for year 2006 and 2007.My income is same ... A: If you do not know what your income or expenses were for 2006 and 2007, you can base it on your 2005 ...
Bonus	4/11/2008
Q: What does the tax law say about how bonuses must be paid and taxed. For example is a single bonus ... A: If they will not make a manual adjustment than yes, spreading it out is better. They cannot pay it ...
Bonus	4/11/2008
Q: What does the tax law say about how bonuses must be paid and taxed. For example is a single bonus ... A: A bonus is taxed just like regular salary. The problem comes in when you get a bonus in large lump ...
1099-misc question	4/10/2008
Q: i recently received a 1099 misc. i know that i must file schedule se and schedule c. i was ... A: You may not deduct as a business expense on your Schedule C the costs of educational expenses that ...
1099 and W-4	4/8/2008
Q: I am both a 1099 contractor (with one contract to only one company, making less than $3,000 in 2007) ... A: You will report the W-2 income on your 1040 and your 1099 income on Schedule C or C-EZ. You can also ...
WA State Sales tax	4/4/2008
Q: Mr. Wellman, My construction company is currently two months behind on paying our states sales tax. ... A: I cannot answer for Washington specifically, because I have not dealt with them. But I have dealt ...
Engagement Letters for Tax preparers	3/19/2008
Q: For the first time ever, we had an engagement letter added to our prepared taxes. This seemed like ... A: No it is not true. It is a good idea for the preparer to get one because it protects them. It really ...
1099-Misc income	3/1/2008
Q: I'm trying to help a friend with his tax return and I've never come across this issue. He got a W-2 ... A: You could enter it on 4797 but the easiest thing is to put it on line 21 with an offsetting entry on ...
delinquent federal tax questions	2/22/2008
Q: I have not filed federal or state(CA.)income taxes since 2001. I am in the process of filing all ... A: (1) No income - no requirement to file (2) You cannot get a refund if you had no income (3) No it ...
debt settlements	2/14/2008
Q: My ex-boyfriend and I got a loan together. Well to make a long story short when he promise that he ... A: Debt cancellation is generally taxable. However, if you were insolvent at the time, you can exclude ...
charged off loans and taxes	2/7/2008
Q: I just received a tax statement from a credit card account that has been closed(charged off) for ... A: Cancellation of debt is considered income and the lenders are required to send out a 1099-C on those ...
childs disability award	2/7/2008
Q: I was just recently approved for disabilty with social security. My son as a dependent will get an ... A: The income is reported on the return of the person who has the legal right to receive the benefits. ...
estate taxes vs. income taxes	2/6/2008
Q: Among other assets my mother left me several stocks. (The total amount of the estate will be over ... A: There is only one value for both. The value is the market value at the date of death or precisely ...
why do i owe taxes	2/1/2008
Q: i am 26 going on 27 years in age and i made an estimated 60k this past tax season. the irs takes ... A: Most likely because you are claiming too many exemptions on your W-4 or using the wrong filing ...
Married filing seperately with itemization, but spouse will not cooperate	1/31/2008
Q: I am asking this in proxy for my girlfriend. She is still legally married, but living apart from her ... A: If she filed MFS, the IRS will likely contact her husband and he may be compelled to file MFS and he ...
Gift of Cash	1/30/2008
Q: If I gave my children a cash gift for the 2007 tax year, does the money have to be deposited before ... A: The date the checks were mailed or made available to the kids. If the gifts were less than $12,000 ...
Dependant tax question	1/30/2008
Q: I have a 18 yr old daughter that is a full time student and living with us, and working. She ... A: You are entitled to claim your daughter as a dependent on your return but you cannot claim her ...
1099-A Deed in lieu of foreclosure	1/30/2008
Q: I have a big problem. I did a deed in lieu of foreclosure with a lender in CA that had both the ... A: I can't explain why you got two 1099's except that it makes sense that one was for the first and the ...
claiming mortgage interest	1/30/2008
Q: My grandparents recently fell ill and My uncle purchased their home. Via Mortgage. However, Due to ... A: In order to claim the mortgage interest deduction, you must actually make the payments AND you must ...
1099 Misc wrong	1/30/2008
Q: I received a 1099 Misc form and in box 7 the amount is way more than I actually received. The only ... A: Report what he actually paid you. In about a year, you may receive a letter from the IRS asking ...
Sole proprietor tax records request	1/28/2008
Q: I was recently looking to buy a business from an associate of mine. I requested the tax returns for ... A: You cannot compel the release of tax information and there is no place you can go to get it. The ...
Rental Property	1/28/2008
Q: I have a rental property that I purchased that needed a good amount of repairs to make to make it ... A: Some items such as the floor and aluminum siding must be capitalized. Others, like the windows can ...
Business Use of Home	1/27/2008
Q: I work for a startup and out of convenience to my employer, I work out of my home. I plan to deduct ... A: Yes, but I am speaking of things such as utilities, insurance and mortgage interest. You cannot ...
Claiming dependants	1/27/2008
Q: I was divorced several years ago and had agreed to allow my ex-husband to claim one of my children ... A: Well, the worst thing that can happen is that they will disallow your deductions and any credits ...
Income Tax Interception	1/27/2008
Q: My daughters father has two warrants / judgements ($7740.00) for back child support. For the last ... A: I am sorry but no. Since she will file as single - there will be no connection with her and your ...
2007 turbo tax for 2008	1/25/2008
Q: I know that there are new laws every year. What do you think the harm would be if I did my taxes up ... A: Turbo Tax 2007 is the current year version for preparing 2007 taxes due in April 2008. Turbo Tax ...
Follow up to Business Tax Question	1/25/2008
Q: Sorry, we formed it under an S Corporation. Does this help? I asked the following question (see ... A: If it was a Sub S, they should have filed an 1120S and sent you a K-1 each year. If they did not, ...
Income Tax	1/25/2008
Q: I am in a bit of panic mode here, I have had 2 jobs for a few years now and in Feb. of 2007 I was ... A: The company has until 01/31 to mail NW-2's. They are required to mail to the last known address. I ...
1099	1/24/2008
Q: My son was hired by a gentleman to work in his buisness. He decided the hourly pay, gave my son a ... A: Employers are responsible for withholding and paying over taxes of employees - but not for ...
Withholding Payroll Taxes for Investment	1/24/2008
Q: Is it legal to max out your dependency status to nine dependents on your W-4 when you are single ... A: It is not legal and, if you owe more than $1,000 when you file your return, you will pay a 10% ...
2008 Capital Gains	1/24/2008
Q: My father-in-law told me that in 2008, there will be no capital gains tax. As I read about it, it ... A: Like most father-in-law advice, it has the ring of truth to it but it is not totally accurate. The ...
Personal taxes	1/24/2008
Q: My Fiancee is getting a 1099 (making no more than 9000 for the year) he is claiming his self, our ... A: If you get a 1099 - you are considered by the IRS to be self-employed. His employer is just saving a ...
question	1/24/2008
Q: i did not work last year but had a baby can i still claim taxes? A: You are not required to file. Since you had no earned income, you cannot get the earned income ...
insurance reimbursements taxable?	1/24/2008
Q: Our condo suffered interior water damage. Our homeowners Ins issued a check to us less the ... A: Sure, but he will get in trouble for it. If he reports it, you may get a letter in a year from now ...
Race Car Driver and sponsors	1/24/2008
Q: I see that the expense for the sponsor maybe deductible but is it taxable to the individual who is ... A: Yes, but only if his sponsorship income exceeds his expenses from racing (doubtful but possible). As ...
insurance reimbursements taxable?	1/24/2008
Q: Our condo suffered interior water damage. Our homeowners Ins issued a check to us less the ... A: He only pays taxes on money he received. If he is an accrual basis taxpayer (unlikely) and he ...
1099 - But we never took the money.	1/23/2008
Q: Last year, my husband had surgery. He was scheduled to take short-term disability payments while he ... A: You have constructive receipt of the money so under the law, it is income to you - even if you do ...
My deceased son	1/21/2008
Q: I had my baby in may 2007 and he passed away the same day. I was told that as long as I have proof ... A: I am sorry for your loss. I lost my nineteen year old a while back. This issue is a matter of state ...
Real Estate Tax	1/21/2008
Q: Greetings, I paid estimated property taxes in 2005 and 2006. Now the tax is finalized and I am ... A: If you actually paid and deducted estimated taxes in 2005 and 2006, you would only report the actual ...
taxes	1/21/2008
Q: In 2006 my mother in-law transferred about $150,000 in stocks to my husbands account as a gift to ... A: First, the lifetime gift exclusion is $1,000,000. When property of given to someone, the donee ...
Tax Preparation Costs	1/21/2008
Q: I am a Realtor in SC who formed an LLC last year and will be filing as a "S" Corporation. My ... A: Well, it it like asking how much will it cost to paint your house without ever seeing your house. ...
unpaid taxes	1/20/2008
Q: I owe IRS about $1800.00 that I am making installments monthly on. That is such a small amount but I ... A: First, you can request an abatement of interest and penalties without paying off the liability. You ...
federal taxes	1/18/2008
Q: My husband and I are seperated.We live in Pennsylvania.It is my understanding that we have to be ... A: If you file separately, each of your refunds will be determined independently based on your separate ...
1099	1/18/2008
Q: Other than independent contractors and lawyers, who else should get a 1099 M(my CPA firm, etc.)? ... A: It is not the type business that is important - it is the form of organization. Corporations do not ...
Corporate draw	1/17/2008
Q: My son & I started a corp in Aug and we are on a fiscal year.(july through June). I am not getting ... A: If it is a corporation you must pay him a salary/wage and do all the payroll reporting and ...
federal taxes	1/17/2008
Q: My husband and I are seperated.We live in Pennsylvania.It is my understanding that we have to be ... A: In order to claim head-of-household, you do not have to be legally separated. You must have lived ...
delinquent tax notice for 2005	1/15/2008
Q: I received a deliquent tax notice from my 2005 tax return from the IRS. They claim I owe another ... A: It depends on what you mean by "negative returns". If you had positive adjusted gross income but the ...
Withholding Taxes	1/15/2008
Q: I started my current job on August 28, 2005. Before i started, the office manager had me fill out a ... A: First, you will not get in trouble but you may end up owing tax and your half of social security. ...
Deducting rental property	1/14/2008
Q: I'm a military member who moved from Florida to Illinois but due to the bad market I couldn't sell ... A: You will claim the rental income on Schedule E, which is attached to your Form 1040. You can deduct ...
W2 to 1099	1/14/2008
Q: I have been switched from W2 to 1099. What do I do first? How do I get set up to make quarterly ... A: You will file your return reporting your income on a Schedule C, which is an attachment to your Form ...
Taxes on Pension Plan Withdrawl	1/10/2008
Q: I became separated from my employer in 2007 and have an opportunity to withdraw money that they ... A: They will withhold 20% at the time of the distribution. You will pay the remainder of tax and ...
Travel	1/10/2008
Q: My husband worked out of state last year for about three months and he had to pay for his plane ... A: If he was an employee, he can deduct these items as itemized deductions on his Schedule A - under ...
Capital Gains Tax	1/9/2008
Q: I bought a house four months ago and have been living in it as my primary residence. I bought it for ... A: That is correct. If the primary reason the home is being sold is due to job related relocation, a ...
tax write off	1/8/2008
Q: I have a question, I own a small business,Last year I licensed It.I wanted just the name at ... A: You will not be able to write off the equipment until you begin operation, regardless of the year. ...
tax write off	1/8/2008
Q: I have a question, I own a small business,Last year I licensed It.I wanted just the name at ... A: You can write off all machinery and equipment as well as operating costs of your business. However, ...
contract labor	1/4/2008
Q: My boyfriend is an employee for this guy and he is full-time but is not taking out taxes and he ... A: Whether he is an employee or an independent contractor is based on individual facts and ...
22 yr. old as a dependent	1/3/2008
Q: I did not claim my daughter on my taxes for 2006. She was working full time but still living at ... A: For 2006 you could not have because she was over 19 and not a full-time student. For 2007, she ...
city taxes	12/26/2007
Q: why do i have to pay city tax where i work at and residential tax where i live me and my wife both ... A: I am sure you understand that I cannot give you specifics without knowing all the details That goes ...
city taxes	12/26/2007
Q: why do i have to pay city tax where i work at and residential tax where i live me and my wife both ... A: The laws on local taxation vary by state and city. But as a general rule, you pay tax where you earn ...
Newly established sole proprietorship	12/20/2007
Q: I am a resident of CA. I normally file Married/Joint return. I started a sole proprietorship this ... A: You report your loss using Schedule C, which is part of your Form 1040 filing. It is an attachment. ...
Letter from IRS ref 1099 MISC	12/19/2007
Q: I rec'd a letter stating that I did not report $27158.00 1099 MISC income from a employer. I did ... A: Those are all valid depending on what your job was. There could be others. Mileage to and from work ...
1099's	12/19/2007
Q: How does a company know which vendors are eligible for 1099's and which are not? Example... UPS ... A: Yes - but only if the company that repairs the equipment is not incorporated or operating as a ...
1099's	12/19/2007
Q: How does a company know which vendors are eligible for 1099's and which are not? Example... UPS ... A: The law is very specific about that. Generally, 1099's are sent to individuals (not corporations or ...
Letter from IRS ref 1099 MISC	12/19/2007
Q: I rec'd a letter stating that I did not report $27158.00 1099 MISC income from a employer. I did ... A: If you had expenses associated with the $27,158 in income then you should complete a Schedule C and ...
Offer In Compromise	12/19/2007
Q: I am preparing an offer in compromise. The taxpayer owns approximately 7 parcels of real property, ... A: They will look at each property individually. The lowest a property can be valued is zero. That ...
Filling Taxes for a LLC	12/17/2007
Q: When does an LLC have to file their taxes by? Also when are W-2's and 1099's due out to our ... A: If you are a single member LLC, then you file a Schedule C with your personal tax return, which is ...
2005 tax question	12/13/2007
Q: My spouse (now ex in 2006) refuses to file 2005 taxes that were prepared as joint b/c the tax ... A: Assuming your divorce decree does not state otherwise, you should file as married filing separately ...
delequent tax returns for contractor	12/11/2007
Q: I know someone who hasn't filed a tax return in several years. He has worked as a subcontractor in ... A: The first thing he may find out is that the IRS has filed some of those returns for him based on the ...
Racing Sponsorship Tax Wrte-Off	12/10/2007
Q: Mr. Wellman, If a company sponsors a race car driver, how much of that is tax-deductible? Thank you ... A: The entire amount is deductible as advertising expense. Where companies get in trouble is when they ...
Racing Sponsorship Tax Wrte-Off	12/10/2007
Q: Mr. Wellman, If a company sponsors a race car driver, how much of that is tax-deductible? Thank you ... A: Theoretically, all the expenses can be deductible but they have to be considered thru the prism of ...
Separation and Mortgage Interest Tax Deductions	12/7/2007
Q: My husband and I have been living in separate residences for 16 months. He is staying in the home we ... A: In order to deduct the interest you must be obligated on the note, it must be secured by the ...
Inheritance Tax	12/5/2007
Q: Mike, My wife's parents both passed away. They left to my wife and her brother their home (pretty ... A: As for federal taxes, no taxes will be due. The federal estate tax provides a $2,000,000 exemption ...
Husband is W2; I am W2 and 1099	12/5/2007
Q: Mike, I started the beginning of this year as a W2 employee and then left my job and was a nanny ... A: You will file a Form 1040 and report all your W-2 income under "Wages". Your 1099 income will be ...
What is the taxability of a cash "gift" to an employee	12/4/2007
Q: We have an employee who lost her home in the California wildfires. A couple of years ago, the ... A: The employee/employer relationship creates special problems with gifts. You are limited to $25 per ...
Sales Tax	12/3/2007
Q: Can I claim sales tax, unemployment tax, etc. which I paid for each month/quarterly for my business ... A: If you are talking about unemployment tax paid for your employees - sure. As for sales tax paid, if ...
Federal Tax lien	12/3/2007
Q: I am trying to purchase a house through a short sale. Not only is the owner in financial distress, ... A: What he would have to do is file a request for a subrogation of the lien. It requires a lot of ...
Internet Business	12/2/2007
Q: I own a small Internet Business doing marketing online. One of my primary sources of income for 2006 ... A: If you are talking about groceries and/or household items you would ordinarily purchase for personal ...
child care	12/1/2007
Q: what do i need to claim child care i pay out to a person who is watching my child A: You claim child care expenses on Form 2441, which is attached to your tax return. To complete the ...
Paying taxes	11/28/2007
Q: SO I recently lost my "legit" job and have only been able to make ends meet at home by working an ... A: You would be considered "self-employed". You report your income on a Schedule C, which is an ...
Cashing out my 401K	11/27/2007
Q: I am going through a divorce and need buy my half of the house. I plan to do a refinance and ... A: Yes, that is correct. So I advise you to put another $10,000 aside, in addition to what is going to ...
Cashing out my 401K	11/27/2007
Q: I am going through a divorce and need buy my half of the house. I plan to do a refinance and ... A: They will withhold taxes at 20% but it will not be near enough. Make sure you have about 40% set ...
Marriage	11/21/2007
Q: I have recently gotten married, but my new husband doesn't want me to use his last name, because he ... A: The IRS does not key on names, they key on social security numbers. You do not inherit his tax ...
payroll taxes	11/16/2007
Q: I recently started with a company in which I work out of my home originating loans. Rather than ... A: No, it is not normal and failing an agreement with you to do it, it is not legal. They benefit by ...
Tax Liens	11/15/2007
Q: I own 2 corps. One went under but fed taxes were still owed for 941's. Fed Lien was placed on the ... A: No. However, if you continued operating the same business under another corporate shell, using the ...
Soc Sec Taxes	11/6/2007
Q: My husband, by definition is NOT self employed or a subcontractor. He earns an annual salary, does ... A: If he is receiving a 1099-misc, he is considered self-employed. Whether he is or not is another ...
Tax implications of withdrawing principle from Roth IRA	11/2/2007
Q: I would like to withdraw the principle from my Roth IRA - leaving all the interest still invested. ... A: A qualified distribution is generally, any payment or distribution made after the 5–taxable–year ...
Tax implications of withdrawing principle from Roth IRA	11/2/2007
Q: I would like to withdraw the principle from my Roth IRA - leaving all the interest still invested. ... A: Unless an exception applies, most distributions from a Roth IRA before the owner reaches age 59 1/2 ...
taxes fertility treatment	10/24/2007
Q: I am wondering if I can write off the cost of infertility treatments on my taxes. I live in ... A: You can include in medical expenses the cost of the following procedures to overcome an inability to ...
Adult Student Dependent	10/24/2007
Q: My unmarried 23 year old son is a graduate student at an out-of-state public university. He has ... A: I think the confusion comes in when we talk about temporary absence. I assumed from your question ...
Adult Student Dependent	10/24/2007
Q: My unmarried 23 year old son is a graduate student at an out-of-state public university. He has ... A: Your son may meet all the requirements except the residency test. You can only claim him if he ...
Estimated Tax	10/23/2007
Q: Mr. Wellman, in July I received a property lease check for mineral lease then received another more ... A: I cannot tell you if you need to make estimated taxes on the lease payments without knowing ...
Filing Joint vs. Single & Money owed by and Ex	10/22/2007
Q: I am planning on getting re-married in November. I had married my first wife in the month of ... A: (1) No, you will have to file as Married Filing Jointly or Married Filing Separately. (2) Yes, the ...
What is a K1 Form?	10/19/2007
Q: I am sure the answer is complex, but could you please give me an overview of what a K1 form is? How ... A: Certain types of businesses like partnerships and Sub-Chapter S corporations do not pay taxes. The ...
How long to Hold these Forms?	10/18/2007
Q: Quick question. How long are you supposed to keep past returns (both personal and business) on file ... A: Assuming they are payroll taxes, I would tell the IRS that your partner was responsible for all ...
How long to Hold these Forms?	10/18/2007
Q: Quick question. How long are you supposed to keep past returns (both personal and business) on file ... A: It varies with the type of records but generally seven years is sufficient. However, records that ...
Previous years / amended return	10/15/2007
Q: I was looking back at my previous tax returns this year and noticed that I may have not filed my ... A: If you are also going to file as married filing separately, then your wife needs to do nothing. If ...
Claim Child	10/15/2007
Q: If a mother is incarcerated (January 2007) and the child did not live with the father at all during ... A: It will be hard to undue it. Typically, the other spouse claims the child too and then they present ...
vehicle deduction on ranch	10/15/2007
Q: I operate a cattle ranch and have deducted a 4 wheel atv in the past for ranch use. I am now in need ... A: As long as you can show the business use of it, it can be an ATV, go-cart, donkey or whatever. A ...
persoal loss carryover	10/14/2007
Q: How do I report a personal loss carryover of $83,000. This is not a capital loss with the $3000 ... A: If you are talking about a Net Operating Loss, which would be a business loss with some adjustments, ...
w9	10/8/2007
Q: When a company requests venders to sign w9, is the w9 ever expire? Do they have to sign again after ... A: A W-9 does not expire. Another one would need to be filed only if something changes. The only thing ...
Gambler /Investor	10/4/2007
Q: I have not filed my 2005 and 2006 Federal and Colorado returns. In 05 i took control of a 350k trust ... A: In order to see where you stand, you will need to file the outstanding returns. If you owe for ...
Should i Ammend?	10/4/2007
Q: I'm in Maryland. My ex-wife cashed/transferred/swept(?) a JOINT account 1 month AFTER our divorce ... A: It is unfortunate, but a joint account is a joint account and if she had unfettered access then she ...
tax deductibility of HELOCs	9/24/2007
Q: What are the rules regarding the tax deductibility of HELOC's for primary and second homes? Thank ... A: When you refinance acquisition debt or take out additional debt such as a HELOC, you can deduct the ...
Corporate Income Tax	9/18/2007
Q: If a corporation does not pay its income tax, are the shareholders personally and individually ... A: As long as a corporation dots all the I's and crosses all the T's, the shareholders cannot be held ...
exempt	9/13/2007
Q: i have been told that going exempt can be a good strategy.. last year i claimed exempt for 3 or so ... A: I certainly agree with a strategy that allows for the smallest refund possible. It does not make ...
claim tax credit if I open a family childcare	9/12/2007
Q: Mr.wellman: I plan to open a family child care in my house. Can I claim some tax credit since I use ... A: You can deduct expenses associated with operating your home as a daycare including depreciation and ...
Oil Depletion allowance for Royalty owner	9/11/2007
Q: Mr. Wellman, My question is regarding taking depletion allowances on my Federal Tax return. I have ... A: Well, I do not think it is an excise tax but if the Oklahoma Tax Commission says it is not ...
I am filing for permenet disibility and we need to use money from my wifes 401k plan	9/9/2007
Q: I had my own buseness and recently became sick and am applying for permenet disibility. I have no ... A: There is a 10% penalty on early withdrawal - plus the tax on the withdrawal at your marginal tax ...
DOCTOR VISITS	9/8/2007
Q: Wellman, I am a General Motors retiree and I have great insurance coverage benefits, but my ... A: Medical costs are deducted on Schedule A, the form used to itemize deductions. In order to use ...
our last tax return	9/1/2007
Q: My wife had our joint tax returns both state and federal put into her personal account and I have no ... A: If the checks were made out to both of you, the bank should not have allowed them to be deposited ...
Phatom Income	8/29/2007
Q: I hope I am not way off on this. A client of mine has been working for a startup company. He is ... A: No, he does not get the money he gets the stock. The company normally sells the shares, but as his ...
Phatom Income	8/29/2007
Q: I hope I am not way off on this. A client of mine has been working for a startup company. He is ... A: Normally the corp will sell the shares. For example, assume the value of the stock is $10,000 when ...
Phatom Income	8/29/2007
Q: I hope I am not way off on this. A client of mine has been working for a startup company. He is ... A: They are not taxable until he sells them. What happens in a lot of cases is they have to sell enough ...
Investment Club Question	8/29/2007
Q: and thank you for providing this service. My question concerns a delinquent tax return I filed for ... A: The IRS abates penalties for "reasonable cause". Reasonable cause is in the eye of the beholder. One ...
Question on taxes doing business over the internet	8/29/2007
Q: Im a 20 year old college student, whois completely independent and reside in Raymond, Maine. I am ... A: You really don't need to get a tax ID unless you intend to hire employees or operate the business as ...
Taxes on Legal Settlement?	8/28/2007
Q: My husband and I just made settlement on a 10 year legal battle of emminent domain for our property. ... A: If the property was abandoned by you to them, then the award is basically the sales price. You will ...
Business owner taking acquiring MBA - Mileage	8/28/2007
Q: I'm a business owner of an LLC company. My business is expanding and I decided I need to continue ... A: The mileage is not going to be deductible. In order to qualify, the expenses must be "required", not ...
Land sale contract	8/27/2007
Q: Mike, I have a purchaser of a land contract who wants the ability to have tax deductions from his ... A: No, he can't do that. He will have an installment sale and will recognize capital gain on the ...
Land sale contract	8/27/2007
Q: Mike, I have a purchaser of a land contract who wants the ability to have tax deductions from his ... A: In order for him to deduct the interest as personal residence interest he must: (1) Be legally ...
Taxing Mileage	8/25/2007
Q: Recently our company was acquired by a larger entity and after reviewing my pay stubs it seems they ... A: Mileage reimbursement for actual use of your car should not be taxed. However, if it is a ...
LLC vs. Corporation tax rates	8/23/2007
Q: I'm a Speech Language Pathologist who needs to start a business in order to privately contract my ... A: You can write of legitimate expenses regardless of the form of organization. Unless you are required ...
2004 taxes	8/20/2007
Q: What was the maximum income for a single person in 2004 before he had to file taxes? ANSWER: ... A: The $7,950 applies to income such as wages earned working for someone else, the $400 applies to ...
back taxes	8/18/2007
Q: will try and make short . We own back taxes to state of Ky been working with them this week to do ... A: The state, like the IRS must notify you before a levy action on your bank account. Furthermore, ...
Retirement penaltiy	8/17/2007
Q: For a first home purchase I want to pull out of my retirement plans with 2 different ... A: First, I assume you are talking about IRA's. The exception applies to IRA's and not other retirement ...
gift tax/and property sale	8/13/2007
Q: I understand that my mother can give me a yearly gift of up to $12,000 that will be tax exempt. My ... A: First, no gift your mother gave you would ever be taxable to you. However, if a gift exceeds $12,000 ...
capitol gains on sale of house	8/11/2007
Q: I am selling a house that my parents had transferred the title to me 6 years ago. Do I have to file ... A: You do not need to file anything prior to your return, however, if the tax is significant, you may ...
Deliquent Taxes	8/11/2007
Q: I was totally disabled for the years 2003 ad 2004. I received disabiliy income from disability ... A: When you get your bill for the penalty and interest due, you will be able to get into an installment ...
Delinquent tax - capital gains?	8/9/2007
Q: First, let me explain how I got into my predicament. And please bear in mind that I have VERY little ... A: First, you can stop worrying about any criminal problems. There will be none. The worst thing that ...
tax liability on proceeds from inherited mutual fund shares	8/3/2007
Q: My step-father passed away in June. I am one of 7 siblings that will will equally split shares in ... A: You will not likely have any liability beyond the interest you spoke of. Whether any estate tax ...
taxable state refund	8/2/2007
Q: The IRS has determined that there is a deficiency in our income tax this year. My husband's company ... A: The deduction is taken on your Schedule A. Presumably you would not have deducted the tax from the ...
taxable state refund	7/31/2007
Q: The IRS has determined that there is a deficiency in our income tax this year. My husband's company ... A: The repayment of the tax from the state it was erroneously paid to is only taxable if you itemized ...
finace that owes taxes	7/26/2007
Q: my finace' is in the process of OIC with the IRS, we plan on getting married in Decemeber. Does his ... A: Possibly. You do not become liable for his taxes and they cannot look to your assets to satisfy his ...
Delinquent taxes, combat exclusion and amendmendts	7/24/2007
Q: Wellman, First let me thank you for providing this service. I am trying to educate myself by reading ... A: 1. If you were divorced on the last day of the year, you are considered divorced for the entire ...
Tax error	7/24/2007
Q: I used Turbo Tax to file my 2005 tax return. In utilizing this a mistake was made in totaling the ... A: The first question is - who's mistake was it? If there was an error in the Turbo Tax program itself, ...
2000,2001,2002 Federal Tax Returns	7/20/2007
Q: A friend informed me recently that he had purchased common stocks in the year 2000 with his IRA ... A: A person has three years from the due date of a return to amend it, after that, any refund that may ...

All Questions in This Category

Mike Wellman

Top Expert on this page

Expertise

I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size. I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All other will be rejected as "outside my expertise". Visit http://www.irsos.com for information on IRS problems.

Experience

Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.

Publications
New York Times, Wall Street Journal, Your Money.

Education/Credentials
BBA, Baylor University.

Awards and Honors
IRSOS.com won the Knowledgeweb award for educational excellence for content.

Encyclopedia

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