Questions tagged [irs]

Internal Revenue Service which is the US Federal Tax authority.

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1answer
186 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
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1answer
170 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 ...
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3answers
938 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 ...
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6answers
31k 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 ...
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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 ...
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0answers
80 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
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2answers
643 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
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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
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1answer
583 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 (...
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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
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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 ...
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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, ...
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1answer
90 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
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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
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1answer
3k 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?
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1answer
969 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 ...
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1answer
120 views

How To Get Confirmation that IRS Credited an Account

Our nonprofit hired a non-resident in 2016 on a J-1 visa and the arrangement was that we would pay her income tax. She is now back in her home country. We filed her return. Turns out we owed money, so ...
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1answer
34 views

account transcript from states

I can get account transcript from IRS. But can I get the same from states? Particularly I'm interested in RI, MA and CT.
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0answers
44 views

Proper depreciation/method/duration for conversion to in-law unit, in older single family home?

IRS publication 527 covers "Basis of property changed to rental use". My question is on the proper duration for the depreciation. Imagine a home was bought for $60k in 1950, with $10k of land value. ...
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0answers
64 views

pass through tax liability

In this scenario, a single member LLC has income of $100,000 and is passed straight through to the owner, subject to income tax and self employment taxes. Single member LLC has borrowed $105,000 at ...
4
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2answers
432 views

Paying someone's college tuition to avoid gift taxes: how do I show the payment is applied to tuition, not other fees?

According to Section 2503 of the Internal Revenue Code of 1986, a payment made directly to an educational institution to pay for the tuition of a student does not count as a gift to the student for ...
4
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1answer
3k views

How does the bank/IRS know whether a bank transfer over $14k is a gift or loan repayment?

Suppose I want to help a relative, an international student, pay his college tuition before he arrives in the US (let's say the amount is $20k, i.e., over the $14k tax-exempt limit for gifts). He'll ...
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0answers
99 views

What is the rate for Federal Excise Tax on DSL/Cable Internet Connections

I noticed the federal excise tax on my Internet bill (DSL) go from 2.5% of the subtotal to 2.6% of the subtotal. How are these taxes figured out? I saw in an IRS publication that telephone ...
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0answers
137 views

I lost IRS notice for interest. What are my options?

Well, I did owe money to IRS last year and after paying all my taxes and IRS having accepted my tax returns, I thought I was done. However, I got a follow up mail from IRS saying that I owe them $18 ...
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1answer
3k views

PayStub - What is Employee ID?

Would anyone be so kind to please explain what is Employee ID and where can I get this information online on my own? The term "on my own" means that I want to find this myself without asking/calling/...
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1answer
1k views

Definition of “business” for the purposes of the IRS Foreign Earned Income Exclusion (2555)

Line 14 of the IRS Foreign Earned Income Exclusion form (2555) asks that one lists the days one was present in the US during the tax year. It then asks how many of those days were "on business", and ...
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2answers
330 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 ...
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1answer
178 views

Capital gains loss, can IRS waive the loss?

I have a capital gains loss of $250K and an IRS debt of $200K, this happened through series of mistakes. I'm currently in non-collectible status. I understand that the IRS has 10 years to collect on ...
36
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5answers
13k views

IRS sent me a letter…I messed up by unwittingly taking money out of a Roth IRA and reporting it incorrectly

I recently received a letter from the IRS based on my taxes for 2015. I believe I did not understand the proper workings of a Roth IRA. I was under the impression I could pull my money out and only ...
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2answers
269 views

What is the penalty of contributing to a Coverdell ESA while earning over $110k MAGI?

Regarding Coverdell Education Savings Account (ESA) (https://www.irs.gov) Q. Who can contribute to a Coverdell ESA? A. Generally, any individual (including the beneficiary) whose modified ...
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2answers
14k 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 ...
7
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1answer
103 views

Applying prior year federal refund to prior year owed tax

If I were due a federal refund in 2011 and owed in 2012 and did not file either year, can I apply the 2011 refund to the 2012 bill? I know I can no longer claim the refund for 2011. Will the IRS ...
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1answer
523 views

Selling stocks as LIFO or FIFO

Hi all, I'm about to begin investing and was curious about how the IRS handles purchasing the same stock. Example: I purchase 50 shares of CS of NASDAQ:PODD on 1/1/2000 @ $50.00 I purchase 50 ...
2
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1answer
143 views

Chapter 7 Bankruptcy IRS Debit 7 Capital Loss

I have a capital gains loss of $250K and an IRS debt of $200K, this happened through series of mistakes. Explained in detail here. My question is I was told that filing for Chapter 7 bankruptcy will ...
1
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1answer
417 views

How do I resolve Free Fillable Tax Form error F1040-524-01?

The following is the error code sent back saying they were unable to process my return due to these error: "Business Rule F1040-524-01 - If 'PINTypeCd' in the Return Header has the value "Self-...
5
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1answer
208 views

Are people who file their taxes correctly, still subjected to being randomly audited?

It is known that the IRS generally audits tax returns based on discrepancies, but are people (including those who file correctly) still subjected to being randomly audited? The National Research ...
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1answer
215 views

How to be exempt from backup withholdings

I have dual citizenship -- US and other -- and I'm living abroad. What form do I fill out so the paying company will not take out backup withholdings?
1
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0answers
73 views

What does the “Business Rule IND-005-01” error mean when submitting my tax return?

I received this rejection notice in an email: Issue : Business Rule IND-005-01 - If Form 9465 and IRS Payment Record are present in the return, then Form 9465, 'PaymentAmt' must be equal to '...
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2answers
14k 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 ...
2
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1answer
69 views

Renting from self during out of area remodel project - deductible?

I own a nightly rental that's out-of-area. I was considering moving to that area for a month and renting and living in my own property while I (personally) do an extensive remodel on it. Would those ...
1
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0answers
74 views

Do employees get mileage reimbursement?

Given the following: I am an hourly wage employee of a company. At the beginning of each calendar year, I get a W-2 showing my wages earned and taxes withheld for the previous year. The company pays ...
2
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1answer
215 views

How to declare foreign gift of nearly $10,000

I understand that gift from a foreign entity (in this case, my non-US parents) is not taxable, but has to be reported. According to the IRS' instruction on Form 3520, I only have to report the gift ...
2
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2answers
276 views

Healthcare mileage deduction for IRS Tax calculation

Turbo tax prompted me to enter miles traveled to healthcare visits. I traveled to physical therapy over 40 times last year so I have a fair amount of miles I could add. My question is should i ...
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1answer
262 views

Can my accounting for Tax Basis differ from my broker's

I recently found out that my broker uses FIFO (first in, first out) accounting when I sell shares by default (as apparently do most brokers), whereas I had hoped for LIFO (last in, first out) ...
2
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2answers
116 views

Does this Health Plan qualifies as HDHP?

I am planning to open a 'Health Savings Account' account but I am not sure if my plan can be considered as HDHP . I would highly appreciate if someone can kindly have a look at my coverage ...
2
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2answers
331 views

Pay down low-interest debt or save for retirement?

I'm in my mid-forties, very low retirement savings, high debt, recovering slowly with a new stable salary. I need to get my finances fixed so that I'm not working full-time on my 70th birthday nor ...
4
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2answers
2k views

Can I get a Wage and Income Transcript if I've never filed a tax return?

I have never filed a tax return because I have never made enough money to be required to do so. I was just wondering if the IRS would still have a wage and income transcript for me even though I have ...
0
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1answer
489 views

Form 1042-S for foreign resident and owner of trade account

I have a trade account at schwab.com and I own a small number of ESPP shares from a previous employment with a US company. I was sent three copies of 1042-S form (https://www.irs.gov/pub/irs-pdf/...
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2answers
110 views

What happens if I add money via commuter benefits to my card but don't use it all in the same month?

My work gives us $125 tax-free for commuting via the IRS commuter benefits scheme. Although I don't need to commute to and from work every day, I could use this $ to load up my commuter rail pass and ...
2
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1answer
5k views

Is FSA spending eligible if the service is prior to Plan Year but the payment is within it?

Background: My employer's Plan Year is the fiscal year, so for this issue it concerns Sep 1, 2016 through Aug 31, 2017. We were expecting a baby in mid-Aug 2016, so knowing charges would be coming in ...