Questions tagged [irs]

Internal Revenue Service which is the US Federal Tax authority.

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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?
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1answer
961 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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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 ...
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2answers
428 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 ...
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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
98 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
135 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
323 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 ...
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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
264 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
13k 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 ...
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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
516 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 ...
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1answer
136 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 ...
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1answer
412 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-...
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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?
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0answers
72 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 ...
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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 ...
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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 ...
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1answer
210 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 ...
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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
256 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) ...
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2answers
115 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 ...
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2answers
327 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 ...
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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 ...
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1answer
484 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
109 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 ...
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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 ...
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1answer
135 views

Accounting method change to depreciation basis : appropriate solution? (USA)

I have personal property that was converted to a rental unit in 2015. When determining the depreciation basis for this property, I used the Fair Market Value, as suggested to me by a TaxAct ...
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0answers
49 views

What documentation might be needed to support a rental property's depreciation basis, and under what circumstances? (IL, USA)

Last year, after moving out of our residential property, we converted it to a rental. When arriving at a Fair Market Value (FMV) for determining the basis for depreciation, we relied on an estimate ...
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2answers
330 views

What are these “new IRS requirements” that H&R Block refers to when forcing me to change my password?

Attempting to log into H&R Block's website to file my taxes, as I've done for the last several years in a row, I'm now being prompted to "Update your account settings so they meet new IRS ...
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3answers
18k 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 ...
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1answer
53 views

Filing for taxes as an F-1 on Stipend

I'm an F-1 Student that was on a co-op for 7 months and during this, 14% of my stipend was withheld, every month. Since this was not an employment, I will not be getting a W2, instead I'll be provided ...
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1answer
7k 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 ...
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1answer
383 views

Could a legal settlement reported on 1099-MISC be taxed as capital gains?

I have a question regarding how a legal settlement payment should be handled for U.S. personal income tax purposes. This is a hypothetical scenario. A plaintiff agrees to accept a cash settlement ...
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1answer
787 views

If I claim a dependent who owes back taxes, is my refund at risk?

He has had his "refund" confiscated by the IRS in past years to pay back taxes, but didn't make any money last year. He lived with me for the entire year. I want to claim him as a dependent on my ...
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1answer
111 views

Depreciation and capital gains on a rental condo in the US

I rent out a condo that I purchased two years ago. I make a small profit. It may be advantageous for me to depreciate the condo. This presumably will increase the capital gains that will occur when it ...
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1answer
255 views

Figuring out if I receive US income?

I'm located in the UK and sell apps through Apple App Store, Google Play etc. I have completed W8-BEN forms at the request of Apple, Google. Now I'm looking to invest in US stocks, to do so, I need ...
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1answer
534 views

Keeping refund from ex spouse / child support

I currently owe back child support to my ex-husband, and typically pay this through my tax refund due to my difficult financial straits via the Federal Tax Refund Offset Program. If I instruct the ...
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1answer
152 views

How do I sign into the IRS to check the status of my refund?

I would like to check on the status of my refund. I have a username and password for the IRS written down, but I can't find the login page.
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0answers
39 views

Can I carryover investment interest expenses, if I didn't report them on a prior tax form

I just discovered some investment interest expenses from a broker statement that were not reported in my last year tax return. Can I "carry them over" into my new tax return? Its probably an ...
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1answer
258 views

I have not yet got my United States tax refund for 2015, don't know why

I filed taxes for 2015 and had to verify identity. I called, and they said that I proved identity, but I never got the refund. I called IRS several times. They kept telling me that nothing was wrong. ...