Archive for April, 2008
Question: When does IRS investigate on individual tax?
If one has file 1040 income return tax form in the past 8 or 9 years, but the income is only around like 16k for the pass 3 to 5 years, and last year 26k. Now, this person wants to buy a condo and he’s going to get money as gift from friends and relatives on foreign country that adds up to approximately 150k, would he be in trouble? Is there anything wrong with it?
Answer: If the foreign gifts are more than $100,000, you must file IRS form 3520.
If you have a foreign bank account with more than $10,000, you must file form TDF 90-22.1
As for trouble, you just produce the same gift letters you gave the bank.
UBS Client Receives Five Years’ Probation
A UBS banking client who pleaded guilty to concealing $6.1 million in secret Swiss bank accounts has been sentenced to five years probation, even as the whistleblower who helped expose the UBS tax evasion scheme is set to begin a prison term Friday.
Expatriate IRS Income Tax Problems Can Be Difficult to Solve
Snyder to call for ending MI business tax, credits
LANSING, Mich. (AP) – GOP gubernatorial candidate Rick Snyder says Michigan’s main business tax is too complicated and should be replaced. The Ann Arbor businessman plans to unveil his proposal Wednesday in Grand Rapids and Lansing.
Zadvinskis John V-Attorney – Grand Rapids, MI
Recent changes in U.S. law made declaring bankruptcy a much more complicated matter. Chapter 7 is the most common form of bankruptcy requested by debtors and does not require repayment. However, the U.S. Trustee has become much more aggressive in denying Chapter 7 bankruptcy, and instead forcing people into a Chapter 13 bankruptcy that does require repayment. Today you need much more from your law firm to get your Chapter 7 petition approved.
Under the new regulations, the government requirements to obtain a Chapter 7 bankruptcy are:
# Obtaining a Special Edition Credit Report of your obligations
# Transfers of your accounts to collection agencies
# Third-party assignees and if any judgments have been obtained against you
# Obtaining a copy of your IRS Tax Transcripts
# The Pre-Filing Credit Class
# Performance and certification of the Financial Means Test
# Preparation and filing of your petition
# Payment of all court filing fess;
# Representation at court hearings (as known as the Meeting of Creditors)
# A copy of your official filed bankruptcy petition
# And the Post-Filing Credit Class.
Arguably the most difficult and the most critical part of the Chapter 7 process is the new “means test.” The means test compares the debtor’s income in the six months before the filing of the bankruptcy to their state’s median income. If the debtor’s income falls below the state median, they are automatically allowed to file for bankruptcy under Chapter 7. If the debtor’s income is above their state’s median income, they may still qualify to file for Chapter 7, but it becomes more complicated process with additional tests that take their expenses and excess income into account.
Another crucial step in getting your Chapter 7 bankruptcy petition approved is the “341 creditors meeting.” The meeting takes place one to three months after the bankruptcy petition is filed, the 341 creditors meeting takes place, which allows creditors the chance to gain additional information about the debtor’s finances and ability to repay his debt. While you are not required to have a bankruptcy attorney, it is important to make sure you are prepared properly for the meeting.
Considering both the new and the old requirements, it may be in the best interests of a debtor to hire a law firm that has both bankruptcy lawyers and a professional accountant.
Census 2010 – time to be counted
You’ve heard about it, you’ve been a part of it since you were born and now, in 2010, it’s time to do it again. What is it? It’s Census 2010, and that means it’s time to count all of the people who live in Galt and the entire United States.
IRS – Strictly for the Heads
Question: Need advice on taxes?
Ok folks here my dilema, last year I claimed head of household because my parents no longer work(receive SSI) but this year my older sister wants to claim H of H and claim me, my brother and sister this year(done at H&R). Last year I made more, but this year she made more than me andmy sister and wants to claim all three of us. Can she do this this year or no? Has anybody done something similiar?
P.S. I didn’t get audited by the IRS if anybody is wondering, the guy their at H&R said that this is Ok’d by the IRS.
Answer: To be a dependent a person must be either a “qualifying child” or a “qualifying relative”.
Your sister can only claim you as a “qualifying child” if all of the following are true:
1) You are under age 19, or under 24 and a full-time student
2) You didn’t provide more than half of your own support
3) You lived with her for more than half of the year.
If she can’t claim you as a qualifying child, then she might be able to claim you as a qualifying relative if ALL of the following are true:
1) your gross income was less than $3300
2) she provided over half of your support for the year
If you are not a qualifying child or qualifying relative as defined above, then she can’t claim you. If you or your siblings meet these requirements, then she can claim you, and if at least one of you meets the requirements AND that person lived with her for more than half the year AND she paid more than half the cost of keeping up the home, then she could file as head of household.
If you or one of your siblings is 19 or older, not a full-time student, and made over $3300 gross income for the year, then she can’t claim that person.
By the way, last year if you provided more than half of your parents’ support, OR if you and some others did in total, you paid at least 10%, and you had a signed multiple support agreement from everyone else who paid at least 10% of their support, then you were allowed to claim them and claim head of household. If not, no matter what an H&R person said, you were not able to claim them legally. Getting audited, or getting deductions disallowed, can take a lot longer than a year for them to get to you, so if you were not allowed legally to claim them, you’re not off the hook just because they haven’t gotten you yet.
More Than 10 Ways to Get FOSS Past the Boss
Jan. 4 is here at last, and not a moment too soon! Good riddance to all the eggnog, the mingling and the jolliness. It’s time to settle back down to work once again, and for that, what better companion than FOSS? There’s certainly no better way to get things done — the only catch, of course, is that not everyone realizes that.
WWE After the Bell IRS pulls Kelly Kelly into a plan to audit Cryme Tyme
Question: If I did not file for taxes will it cause my home loan to be denied ?
will the report on form 4506-T cause my loan applacation to be denied? can I contact the IRS to correct this.(Pay the IRS if needed) so my loan goes thought.. Very short on tiime have 45 days to get this fix if it becomes a problem.. Help Please
Answer: If you haven’t been filing taxes, I imagine that could cause your loan to be denied. The bank’s usually ask for copies of your tax returns to verify your income. Why should the bank believe you will pay them back if you haven’t paid the IRS?
You should really take care of the IRS issue as quickly as possible. You can find phone numbers for your local office on their website.
Government & Public Sector
“Although [the federal government] ha[s] made some progress—particularly with respect to Recovery Act contracts—more work can and should be done.
Loan Modification Response in 7 Days (Nationwide) www.austinlawwrks.com