Questions tagged [irs]

Internal Revenue Service which is the US Federal Tax authority.

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25
votes
11answers
15k views

What do I do if my income is just a little too high for “free file”?

I live in North Carolina and I'm using the H&R Block website to file my taxes and finally at the end of everything they informed me that there's a limit to how much I could make last year and ...
0
votes
1answer
121 views

What are tax consequences in U.S.A if my dad pays for my share of llc [closed]

I am a member of a multi-member LLC. My dad wants to gift me money and pay for my share of the LLC. My dad is not a member of LLC. What are the tax consequences if my dad sends money directly ...
0
votes
1answer
259 views

Exorbitant Tax Preparation Fee, what should I do?

I recently received my tax refund from the IRS, however, I also got an invoice for $500 from the tax preparation service that had helped me file my taxes. Firstly, I have a very simple 1040 tax filing ...
3
votes
1answer
284 views

Does a U.S. citizen living in Mexico and getting paid from U.S. company, have to pay taxes in Mexico?

I'm a U.S. citizen living and working in Mexico to help expand operations for a U.S. corporation I work for. I currently file and qualify for the Foreign Earned Income Exclusion under IRS rules. My ...
1
vote
0answers
39 views

Consideration Checklist on Becoming Tax Resident in the USA

What things should be considered by an immigrant before deciding on whether to file taxes in the United States as a Nonresident Alien or a Resident Alien? The person making the decision does qualify ...
1
vote
0answers
33 views

Will backup withholding be applied in this scenario?

May be this is a very basic question but I couldn’t find exact scenario on web which I am looking for. What I know: If a US person (located or citizen of US) trades equity in market, then the broker ...
5
votes
2answers
406 views

How much money from a 529 college savings plan can be applied towards rent when a university offers several tiers of accommodation?

I attend university in the United Kingdom but have a 529 college savings plan in the United States. As I understand it, money from this plan can be used to cover my off-campus housing expenses. ...
4
votes
1answer
156 views

IRS ramifications of renting to a family member who also entitled to 1/3 of home (informally)

My mother quit claimed her mortgage-free home to me many years ago. It was understood that she would retain financial control the remainder of her life, although never formalized as a living trust. ...
1
vote
1answer
8k views

W-4 Allowances - IRS Calculator

I am currently utilizing the IRS Withholding Calculator to figure out what my allowances should be (note: NOT exemptions). My current situation: First half of year up to June 30, I earned 11,700. The ...
2
votes
0answers
80 views

What are the repercussions of submitting an incorrect W-2 complaint with the IRS for a current employer

As explained in another question, my employer is listing the amount they paid towards my domestic partner's health insurance as imputed income. However, the internet, and two accountants I spoke with,...
3
votes
2answers
400 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 ...
2
votes
1answer
599 views

Can a business reimburse travel booked with award miles?

We have an employee who booked business travel using a combination of credit card (cash) and his award miles (Chase points). He is now requesting a reimbursement of the full cash value of the tickets (...
3
votes
2answers
724 views

For bitcoin, can I use specific lots instead of FIFO for IRS capital gains tax calculation?

I would like to start using specific lots, rather than FIFO, for my capital gains tax calculation as it relates to bitcoin holdings. If I sent coins to a specific wallet setup for the express ...
2
votes
1answer
230 views

Treatment of donations of appreciated stock to a IRC §501(c)(7) Social Club?

What differences or special considerations are there in IRS tax handling of bequests made to a §501(c)(7) social club, compared to the same bequest made to a private party or a §501(c)(3) In ...
1
vote
0answers
46 views

Income reported on W2 was not received AND the company no longer exists [duplicate]

Our situation is the same as in this question: Spouse was employed by the company till Jan 31 '17, but was on unpaid leave for the entire month so no salary. We now receive a W2 for 1 month's wages ...
4
votes
3answers
43k views

Sending mail to IRS by which postal method or courier?

This is the first time I am sending mail and a check inside an envelope to the IRS and I am wondering should I use certified mail by USPS for sending my envelope, or would simple USPS mail be fine? ...
3
votes
2answers
203 views

Can the IRS come after a new limited liability company for back taxes?

My boss owes about $50,000 in back taxes, in which he has set up a payment plan with the IRS. He wants to Start a NEW L.L.C. My question: Can and will the IRS seize money from the new business and/...
2
votes
1answer
134 views

Should I submit a tax declaration if I've been working in USA only about 30 days in total?

For a while I've been working and living in USA (and paying taxes of course) as a L1 visa holder. In February 2017 - I've left the job (so L1-based work permission is invalidated), left the country ...
0
votes
1answer
115 views

The IRS collects property taxes?

I read an article on Nicholas Cage squandering his fortune and among other things it says he was "...eventually facing foreclosure on several properties and owing the IRS $6.3 million in property ...
2
votes
0answers
194 views

Can earnings reported in boxes 3 or 7 on a 1099-misc be contributed toward an IRA?

I'm trying to understand the 2017 IRA contribution limit as it relates to income reported in boxes 3 "other income" and 7 "Nonemployee compensation" on the 1099-misc. This is money paid to a graduate ...
1
vote
1answer
385 views

Eligibility for IRS Free File or Free Fillable Forms Programs

I am looking at the two online options the IRS offers: In one location, the IRS site states: Income below $66,000: Free File Software Income above $66,000: Free File Fillable Forms But on ...
2
votes
0answers
280 views

Changed my mind about filing with H&R block

I filed my taxes with H&R block. I decided to do my own taxes online. The IRS hasn't accepted any returns yet... Can I get my taxes back?... And redo them?
3
votes
3answers
985 views

How did the IRS know that Boris Johnson sold his house?

According to several articles, Boris Johnson, the British foreign minister who was born in the U.S., was hounded by the IRS for taxes on the sale of his house in the U.K. For example here: https://...
1
vote
1answer
4k views

When will the 2017 US Federal Tax forms be released?

Right now we're in the middle of 2017 and I'm trying to plan out different aspects of my tax liability that will be due next April. However, as much as I try to search online, it looks like the 2017 ...
-2
votes
1answer
121 views

If I owe the IRS, how can I protect my new business?

I want to fix and flip some houses, and potentially pay the IRS once I make some money, but I don't want them putting liens on my properties before I can sell them.
0
votes
1answer
102 views

Property alienation under German Tax Treaty

I am a U.S. citizen living in Germany and would like to sell some movable property at a higher price than I bought it for. I held it for longer than a year, so I am not subject to German taxation. U.S....
5
votes
1answer
223 views

What's required to claim “pass-through entity” tax rates, for a sole proprietorship under 2018 IRS tax rules?

Under the 2018 USA tax plan, I understand that "passthrough" entities are offered the same tax rate as corporations. What qualifies for this rate? An LLC? An S-Corp? Anyone who files Schedule-C? ...
4
votes
1answer
150 views

CP542 backup withholding notice from IRS

I've just received an utterly bizarre letter from the IRS, excerpted below: Notice: CP542 Form: 1040 Tax Period Ending: 12-31-1985 Our records show you have reported and paid all tax ...
3
votes
0answers
103 views

Health Insurance: Why use the iterative calculation method?

Context Self-employed Bought health insurance through a health insurance marketplace All premiums for the entire year were "specified" (nothing "unspecified") Need to calculate the the amount of ...
37
votes
5answers
5k views

How to handle the Equifax Breach this tax season?

One of the most common forms of fraud is tax return fraud. Generally you don't find out until you go to file and someone has already been kind enough to file your tax return, AND take a payment for it....
2
votes
1answer
505 views

Ability to claim an undocumented alien adult as a dependent

I am trying to determine if it is possible to claim an undocumented alien as a dependent for tax purposes during 2017 in the United States (form 1040 line 6c) as well as a credit for money spent for ...
2
votes
2answers
723 views

Section 179 vs depreciation of laptop

I am running my own business via LLC and was considering to buy a laptop for that business. At some point the CPA I consulted with mentioned that I should be expensing equipment purchases under $2500 ...
34
votes
2answers
3k views

How is the taxable value of a goat determined? [duplicate]

I was reading an answer over on Law.SE, and it made me wonder about how the IRS calculates tax on barter transactions. Lets say that I do a job in January, and get paid for my work with 20 goats and ...
-3
votes
1answer
107 views

Gift tax on gifts from multiple, unrelated individuals [duplicate]

Based on my “pay no tax” research I found this gift law. I think I’m on the right track and would like clarification because, I literally detest the government for very good reasons; not the least of ...
1
vote
1answer
182 views

How detailed do itemized deductions have to be? (source needed)

how detailed do itemized deductions need to be? I get the impression that one could just write the total amount of deductions in one line and be done with it. In the event of an audit the taxpayer ...
3
votes
1answer
168 views

Donations: In need of guidance on filling out a 8283 form

I believe I have this 80% figured out although theres still some grey areas thus far based on researching a variety of tax websites and IRS's official page. My situation is as follows. Donating FIVE ...
10
votes
3answers
881 views

Can you be penalized for setting an arbitrarily high number of allowances on your W-4?

I withheld too much in taxes this year. I will benefit a good amount from the Lifetime Learning Credit, which I hadn't heard about until today. Even if I don't pay a cent in taxes for the rest of the ...
7
votes
6answers
30k 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 ...
1
vote
1answer
79 views

Not reporting very small income on my U.S. account while I live abroad

I grew up and lived in the U.S. until graduating from university. After graduation I took a job abroad where I have been living now for 5 years. Since beginning my job, I have been filing a U.S. tax ...
1
vote
0answers
76 views

How to file stipend on ESTA Tourist VWP

I was invited for a conference/meeting to the US for graduate students organized by an US cooperation. Our costs were supposed to be reimbursed by the cooperation in a form of a stipend. After the ...
3
votes
2answers
639 views

S-Corp Estimated Tax Payments

I plan on splitting my s-corp income 50/50. I hope to make 80K this year, 40 on payroll, the other 40 as distributions (s-corp income). I’m figuring the first 40K will be, mostly, at the 15% bracket. ...
3
votes
1answer
2k views

Paid my tax online, but received a non-payment notification from the IRS

I filed my Federal taxes correctly as a Non-resident using 1040NR-EZ form, and I had to pay a certain amount. I paid online using payusatax.com (on-time) but used the "pay 1040 balance due" option. I ...
4
votes
1answer
576 views

What cost basis accounting methods are applicable to virtual currencies?

This year I began doing some small investments in cryptocurrencies (Bitcoin, etc), and turning small profits. I've been tracking my gains under each of the different cost basis accounting methods (...
24
votes
1answer
4k views

I am distributing an inheritance based on verbal bequests. Is this considered a gift that must be reported to the IRS?

Before my mother died recently she gave me a verbal list of bequests she wanted to make that were not in her will. Some of these exceed $14k. I will be paying them out of my own bank accounts with ...
4
votes
1answer
8k views

What's the fastest way to get another copy of a (lost) letter from the IRS requesting additional information?

I recently received a letter from the IRS saying they needed additional information to process my taxes. They need it in 20 days and I somehow lost the letter and I don't remember what the ...
13
votes
5answers
5k views

Does the IRS reprieve those who have to commute for work?

Consider someone who for either family or affordability reasons is unable to live in San Francisco, where they make their living. Their daily commute is long. The cost of the commute is nontrivial, ...
1
vote
1answer
87 views

H1-B : How to invest money outside the USA

I am an H1-B visa holder in the US. I would like to start investing some money here in the US and also in India, my home country. Are there any IRS regulations I should be aware of when sending ...
9
votes
2answers
1k views

Can yearly tax free gifts to a person in the U.S. be sent in multiple checks?

I'd like to give someone a monetary gift, well under the current $14,000 Annual Gift Tax Exclusion limit; however, I'd like to send them multiple checks throughout the year. I'd heard about this in my ...
1
vote
1answer
2k views

Can I open a personal bank account with an EIN instead of SSN?

Can an individual open a personal (non-business) checking or savings account using an EIN instead of their SSN? If so, what are the advantages or disadvantages of doing so?
1
vote
1answer
957 views

IRS (USA) Form 843 - How much time you have to file?

While I was on F1 Visa, my employer witheld social security and medicare taxes for me in error, and has declined to process a refund. IRS has a form 843, which allows you to petition IRS for a refund ...