Questions tagged [irs]

Internal Revenue Service which is the US Federal Tax authority.

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37 votes
3 answers
6k views

Taxes when transferring money

I'm a US taxpayer (non-resident alien) and I'm being pushed by a friend to do the following: He will transfer 40k from a US bank account that he owns to my personal account. I will withdraw this ...
jlhonora's user avatar
  • 483
15 votes
2 answers
31k views

ITIN Application - IRS requesting original passport

I have filed joint tax return for 2012 tax year. My wife is not eligible for SSN (she's on H4 visa) so we included the W7 form (application for ITIN) into the package. This year the rules became more ...
Mikhail's user avatar
  • 293
9 votes
1 answer
14k views

ITIN application rejected, and IRS lost one of our passports. How to get back the lost passport?

I have filed my 2012 tax return jointly with my wife, along with my wife's ITIN application, back in late March. In April, I got a letter for IRS ITIN department saying that we should send my wife's ...
IRS_lost_our_passport's user avatar
28 votes
3 answers
19k views

Robocall claiming to be IRS saying they are about to sue - Is it legit?

We got a recorded call with a message claiming to be from the IRS. It said they were giving final notice and preparing to file a lawsuit against us. In our case, the message went to voicemail so the ...
user avatar
21 votes
1 answer
3k views

I haven't filed a return to the IRS in 10 years

My employers have always withheld taxes and for the most part I've assumed they've done it right. I have probably owed a bit some years and been owed a refund some years. Anyhow, I want to get ...
BackTaxes's user avatar
  • 345
11 votes
1 answer
2k views

What should I use as the cost basis for stock that was purchased before becoming a US resident?

I held some stock in Australia for 14 years and 4 months that has enjoyed some healthy long term capital gains in that time. Recently I became a US Resident for Tax Purposes under the Substantial ...
William's user avatar
  • 213
13 votes
3 answers
2k views

Is it a gift or not?

IRS rules are not always black or white, and something that I find myself struggling with is what is considered a gift. Hypothetically, suppose I am moving soon and have a broken leg so I cannot do ...
TTT's user avatar
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4 votes
2 answers
187 views

estimated IRS tax payments

We sold some U.S. government Savings bonds in June of 2018 that had a gain in interest of double our yearly income. A one time sale. Now, I'm thinking that I will owe quite a bit in taxes and I'm ...
piton's user avatar
  • 489
4 votes
2 answers
1k views

IRS says Senior is entitled to credit, but only if they receive his 2020 return

My Uncle does taxes by hand and does not use tax person. He filed 2020 and sent check for amount $123.45, the amount he owes. iRS cashed this check few days after he mailed 2020 return (back in Apr ...
Marium's user avatar
  • 363
2 votes
1 answer
160 views

Make punctual contributions to IRS based on earnings

A few weeks ago I asked a question about paycheck withholdings because my wife started several part-time jobs with variable demand and therefore variable income. Considering we filled in 0 exemptions ...
MisterStrickland's user avatar
1 vote
2 answers
250 views

Any advantage to proactively refiling previous-year paper tax return that the IRS misplaced, and that I have a paid balance on?

I filed for the first time on paper in June 2020 for tax year 2019, and I have the certified mail receipt. I owed a balance, and the IRS deposited the check that I enclosed, but I didn't receive ...
user106227's user avatar
1 vote
2 answers
718 views

Estimated Tax on Unplanned Capital Gains

I would like to sell stock valued at $X for combined long-term capital gains of around $Y. The sale would be in July. I expect the tax on the gains alone to be well over $1,000. When you're in the ...
Patrick87's user avatar
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21 votes
4 answers
10k views

Do altcoin trades count as like-kind exchanges? (Deferred capital gains tax)

2018 EDIT: Although this post was inspirational, US Congress addressed this issue in the Tax Reform law of 2017, and any trades after Jan 1st 2018 cannot have this treatment. The few years of ...
CQM's user avatar
  • 20.2k
18 votes
2 answers
25k views

Get a human when calling the IRS hotline 800-829-1040 with a question about your taxes?

How do I get to a human when calling the IRS? I keep hitting automated robots.
Patoshi パトシ's user avatar
12 votes
2 answers
18k views

How can I avoid being fined or penalized because my accountant might have failed to file my taxes on time?

I decided to use a CPA because my tax situation got complicated this year. I have attempted to contact my accountant several times and cannot get a response from him at all. It is now after the ...
user14549's user avatar
  • 145
9 votes
2 answers
658 views

What increases your chance of being audited?

What increases your chances of being audited? Having a home office? Small business? what decreases your chances? Does hiring an accountant do your taxes makes it look more credible to IRS agents?
Vitalik's user avatar
  • 5,463
6 votes
2 answers
1k views

HSA distributions and tracking receipts

During a presentation regarding HSAs I was informed the IRS can audit one for an indefinite period of time. The presenter suggested we keep records of our claims for 10+ years in paper form. This ...
ngnewb's user avatar
  • 149
4 votes
3 answers
421 views

What is the logic behind the IRS direct deposit of the stimulus check?

According to the general press and the relevant IRS pages, if you e-filed your taxes for 2018 (or even 2019), and you used direct deposit, the stimulus checks will be deposited automatically into the ...
Aganju's user avatar
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4 votes
2 answers
10k views

Can I apply for an ITIN without filing a tax return?

I'm a nonresident alien (Canadian working online earning money from a US company). Currently, they're paying via mailed cheque, but I'd rather be on their payroll. However, in order to do that, I need ...
user5436699's user avatar
3 votes
1 answer
2k views

Does payment in goods count as "income" for tax purposes?

Can someone help me elucidate the definition of "income" from a tax perspective? More specifically, if Joe is paid for his work in avocados instead of dollars, then would Joe be exempt from paying any ...
Brian's user avatar
  • 173
2 votes
1 answer
3k views

Does the FATCA laws also relates to individuals incomes?

I'm wondering about the American FATCA laws which apply various tax rules on American citizens' foreign accounts around the world. Except for tax withholdings from investment income, does this law ...
Yair Nevet's user avatar
2 votes
2 answers
131 views

Can one file the US tax return (federal and state) electronically when they're no longer living in the States?

I am reading this from the IRS site: https://www.irs.gov/individuals/international-taxpayers/taxpayers-living-abroad … which says the following: Where to File If you are a U.S. ...
Marcus Junius Brutus's user avatar
2 votes
1 answer
3k views

F1 student in US, correcting mistake in wrong tax form filed

I noticed a similar question In the US as an F-1 student, filed the wrong form last year. But I have something additional to ask. I am a F1 student nonresident alien and, in 2014, I filed form 1040EZ ...
gyeox29ns's user avatar
  • 121
25 votes
7 answers
46k views

Can my employer limit my maximum 401k contribution amount (below the IRS limit)?

I contribute about 13% of my income to my company's 401k, which, at my salary, is well below the IRS limit of $17K/year (in 2012). However, with my raise this year, my benefits department told me that ...
SqlRyan's user avatar
  • 353
19 votes
1 answer
8k views

Do I pay gift taxes in US, if I send money (>$15000) to my father in India?

I am in the US on F1 visa - OPT, I need to send money to pay off my student loan in India. I have already sent about $25000 to my dad, who has paid it to the bank for my student loan and I am planning ...
user63762453's user avatar
13 votes
3 answers
7k views

When do dual citizens (Canadian & American citizenship) need to file U.S. income taxes?

I'm a Canadian-US dual citizen (born in the US to Canadian parents) but I've lived in Canada my whole life (aside from the first 3 weeks). I've never had an American passport or a SSN. I've never ...
Eclipse's user avatar
  • 1,281
12 votes
2 answers
57k views

Does the IRS track every check deposited by me?

Is there a maximum amount limit on exceeding which the tracking starts? Or does each and every check deposited by me gets tracked by IRS for reconciliatory purposes?
Maximus's user avatar
  • 273
10 votes
1 answer
191 views

If the IRS asks for a proof for a medical expenditure, can we provide a scan, or do we have to provide the original receipts?

In the United States, one can deduct part of the expenses a taxpayer paid for medical and dental care for themselves, their spouse, and their dependents. In case the IRS asks for a proof, are scans of ...
Franck Dernoncourt's user avatar
9 votes
4 answers
735 views

Are tax deductions voluntary?

If I did something that I know is a deductible expense and did not deduct it, is that a sanctioned tax filing? The result is that I would end up paying MORE tax. This also results in me reporting a ...
CQM's user avatar
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9 votes
3 answers
3k views

If IRS instructions for Form 1040 are not available, should taxpayers wait to file until they are published?

Apparently the IRS has not yet published the instructions for Form 1040 for the tax year 2019 yet (as of January 7, 2020). When I go to the standard form instruction index page it just lists the ...
Five Bagger's user avatar
  • 9,785
8 votes
6 answers
40k views

Can I use an FSA from multiple employers in a year?

My current employer offers an FSA. For 2014 I have opted to contribute the maximum allowed which is $2,500. If, after using that $2,500, I switched employers and they also offered an FSA would I be ...
jwmn's user avatar
  • 233
6 votes
3 answers
3k views

Minimizing medical costs with HSA

After landing a new job, I opened a health savings account (HSA) in February 2019. I decided to contribute $1 of my pay per pay period to my HSA. However, I can change my contribution amount at any ...
Liz Salander's user avatar
6 votes
1 answer
8k views

Do 401K contributions reduce MAGI as it pertains to Roth IRA income limits?

My wife and I are looking to make around 200K this year, putting us past the Roth IRA income limit. It may be possible for us to get under that limit if we both ratchet up our 401K contributions from ...
buckeyeguy's user avatar
6 votes
1 answer
5k views

When does the IRS generally decide whether or not to audit your tax return?

I've never been audited by the IRS, but I was just curious if the fact that I received my tax refund in any way indicates that I am less likely to be audited this year. My presumptive theory is that ...
JohnFx's user avatar
  • 53k
6 votes
3 answers
12k views

Square reported girlfriend's business income under her SSN, triggering IRS issues (2012). Does she have any recourse?

My girlfriend received a certified letter from the IRS telling her she owed almost $20,000 to the IRS for the 2012 tax year. She called the IRS and learned that the reason for the charge was that ...
revler1082's user avatar
5 votes
2 answers
226 views

Foreign priced expenses - actual card charge amount is OK?

For the IRS in the US ... Say you are overseas in Japan and you have a legitimate business cost of 11,123 Yen. You correctly keep the receipt, Yen11123. How to convert to USD when making it a ...
Fattie's user avatar
  • 13.8k
4 votes
3 answers
26k views

I'm Canadian, but I've worked in the United States. Why did I get a $1,200 payment from the IRS?

I'm Canadian, but have been working in US 3 years 2015-2018 on TN visa. In 2018 I returned to Canada, filed IRS return for 2018, but didn't do it for 2019, because that year I didn't work in US. But ...
Alexan's user avatar
  • 740
4 votes
1 answer
6k views

Why does IRS Stimulus Tracking Tool Claims "Payment Status Not Available" When I Am Eligible?

Apologies for the lengthy post. I'm been confounded the past 2-3 days by the confusing information I'm getting from the IRS's FAQ page and their Stimulus "Get My Payment" Tracking tool. I ...
James Haug's user avatar
4 votes
1 answer
2k views

What to do about not having an ITIN for spouse if IRS isn't being responsive?

I live and work in the US on H1B visa with recent spouse on H4. I filed my 2012 state and federal return along with spouse's w7 forms and document copies as per filing instructions but never got ...
madballoonist's user avatar
4 votes
1 answer
257 views

RMD Penalty Waiver

We accidentally neglected to take the RMD from one of our two 403b retirement accounts. As soon as we realized this, we had an accountant help us fill out a 5329 form for each tax year. He advised us ...
Mattman944's user avatar
  • 1,718
4 votes
2 answers
539 views

Bitcoin Cost Basis Purchases

Suppose that a client purchases 10 BTC over a price range of $180 to $290 and transacts twice with his BTC for a total purchase of 2.7BTC. Two questions: Based on this, the IRS taxes bitcoin like ...
user541852587's user avatar
4 votes
2 answers
14k views

Is it necessary to file taxes if you've made less than $15,000 for the year?

I'm asking on behalf of a friend, who, last year, worked 5 weeks through a temporary placement agency earning ~$400/week after taxes (~$550/week before taxes), and also worked 6 months at an ...
Andrew Cheong's user avatar
4 votes
2 answers
17k views

What should we consider when withdrawing a large amount of money from a bank account?

As titled, what should we consider when withdrawing a large amount of money (>100K) from a bank account? Do we need to document the purpose of our withdrawal? From what I could have found: withdraw ...
B Chen's user avatar
  • 1,029
3 votes
1 answer
2k views

W-4 Worksheet for Spouses Filing Jointly: Who Files the W-4?

I've tried finding an answer to this issue both here and elsewhere on the web and haven't been able to so far. My husband got a new job last month with a significant salary increase, and I've been ...
akbarratt's user avatar
  • 137
3 votes
1 answer
330 views

Will a non-US citizen living and working in the US be eligible for stimulus check?

Please excuse me if this question doesn't fit very well here in this forum, but I don't know which SE would be more suitable for my question than Money.SE, so I decided to ask it here. My question ...
Mithridates the Great's user avatar
2 votes
2 answers
34k views

How do I estimate my taxes when I have only 1099 income?

Last year I had W-2 income and 1099 income. I made $10,000 in real estate commissions. I believe I paid $1800 last year in 1099 tax, but none of it to the best of my knowledge was penalized. I filed ...
Evan Carroll's user avatar
2 votes
1 answer
300 views

When flying to and from the United States, from/until what time does it count as days of presence from an IRS tax residence standpoint?

When flying to and from the United States, from/until what time does it count as days of presence from an IRS tax residence standpoint? For example, if my plane entered the US airspace at 20:00 on ...
Franck Dernoncourt's user avatar
2 votes
2 answers
799 views

IRS Form 5500-EZ (5500EZ). How to file late

I had an S-Corp that I closed down in 2013. I didn't realize I needed to file a form 5500-EZ because although the assets in the Self Managed Individual 401K were less than $250,000, you need to file ...
Dave's user avatar
  • 185
2 votes
1 answer
213 views

How to send back the CARES payment of COVID-19 to IRS as non-resident

I am a non-resident alien who working in the US. I received the CARES payment ($1200) of the COVID 19 by direct deposit from IRS, while I know that as a non-resident, I am not eligible to receive. ...
vietanhle0101's user avatar
2 votes
1 answer
400 views

How to process IRS check as a non-resident?

I used to live in the US. I filed in my tax returns, then I had to move out of the country, closed my bank account and everything. Now, my ex-roommate received my IRS check. I was wondering, how can ...
wael34218's user avatar
  • 123