The IRS Audit Blog

Posts Tagged ‘account’

Calendar

Submissions for “Community Calendar” are required two weeks preceding the date of publication. Send to: Mary Ann Bottari, Pioneer Press, 3701 W. Lake Ave., Glenview IL 60026; mbottari@pioneerlocal.com. Information may be faxed to (847) 486-7495.

Self-Directed IRA | Real Estate IRA | Guidant Financial Group

Question: How to file form 1098 for a foreign lender?

My lender is not a U.S. person (neither U.S. citizen or resident) and he receives my mortgage interest monthly, which is paid to his bank account in the U.S.A. He is supposed to file form 1098 and he has two questions: (1) As he doesn’t have Social security Number and Federal Identification Number, need he only put his foreign address and phone number? and (2) How to file this form with IRS —just download the form, fill it up, and mail it to IRS office?

Answer: Have *you* been withholding 30% of the interest payment and forwarding to the IRS as you were supposed to? Then at the year, you would issue the lender a 1042-S. These would be proof that you have paid the interest and that he paid his taxes on his US-source income. IRS pub 515.

As for filing the 1098, he files it if he’s in the trade or business of lending money. He files it with a W-7 application for the ITIN. He must order the form — it cannot be downloaded–and files it with a 1096. Note, he’ll also need to attach a note explaining why it’s late.

Thoughtless Taxation

This article appeared in the Washington Times on November 22, 2010. Treating variables as constants is a sign of a damaged brain. In the real world, almost any action taken by government is going to cause a behavioral response — and often one that is not intended.

Feb 17, 2010 – 13/16 – Dan Walkow

Question: How can I put intellectual property I create; a copyright, patent, etc. into my self-directed IRA or 401K?

I have learned that some creative investors are buying Domain Names (URLs) with 401K accounts. This method of turning a bright idea into retirement funds fascinates me-and I wonder if anyone knows the mechanics for doing the same thing with intellectual property like a copyright? Buying an existing copyrighted material with retirement account funds seems straightforward-but what about for a idea you conceive yourself? Does anyone know of a blog, forum or IRS ruling on this?

Answer: I don’t know that you can but I would suggest asking a professional IRA source that could give you the most accurate response, as well as give you some suggestions.

http://www.irafinancialservices.com/

Avoiding “Prohibited Transactions” In Your IRA

Between the time you contribute to and distribute from your IRA , you will be working to ensure that your assets provide the best possible return. However, there are some limitations on what you can do. When investing your IRA assets or implementing certain transactions, you must exercise caution.

Self Directed IRA Tips With Give the IRS the Slip

Question: Reporting of Foreign Bank and Financial Accounts (FBAR) for U.S. resident aliens?

According to the link http://www.irs.gov/pub/irs-pdf/f90221.pdf any United States person(including resident aliens which I am) who has a financial interest in or signature authority, or other authority over any financial account in a foreign country, if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year, must complete Treasury Department Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts, and file it with the Department of the Treasury.

1. My funds in my home country’s banks are held in a joint savings account with my mother. Does that amount count toward calculating the 10K or not?

Answer: You have authority over those funds, so the full amount on deposit there is included and must be reported.

Several folks are misinterpreting the suspension of reporting. You are a resident so you must file the reports.

IRS 2010 Milestones

Here’s my own not very scientific list of ten highs and lows we taxpayers saw in 2010, mostly from t

IRS Offshore Account Amnesty: What if you don’t owe any tax?

Question: Can a collection agency file a 1099 on a debt that is past the statute of limitations?

It is a credit card debt from 1999. They are saying they will file a 1099 with the IRS if I do not pay it. They have not sent any sort of letter by mail within the past 30 days. I just received this call this morning.
Actually, Kevin.

This credit card debt was not mine. It was a credit card my ex-huband got while we were separated, so naturally it went on my report as well. I only found out about this debt recently.

I am a full-time student and I do not work outside the home as I have 5 kids.

If this was my responsibility, AND IT IS NOT! I still would not have to pay it because it has been 9 years!

The statute of limitations is there for a reason. Federal is 7 years. The state I live in is 6 years.

Get off your high horse. You are saying you are perfect and NEVER had any problems?

Answer: > 1st per the Fair Debt Collection Practices Act, they have to send you a letter, do you dispute debt? For convenience, you can always say yes, or no, of course it is a moral question there, up to you. Did they send this letter originally?
>This is a factored debt. Factoring is one of the fastest growing businesses in the U.S., buying and selling of debt, my guess they bought the debt for pennies on the dollar if it is that old.
>Under the above law they cannot say anything they do not intend to do, like say they are going to sue, then don’t would be a violation.
>The only time a 1099 would be sent is if you made a settlement on a debt, and since you obviously did not make a settlement, this is an illegal, and unjust attempt at making you pay, and it is particularly dangerous to you, because if you pay $1 on the debt you have re-started the statue of limitations on the debt.
>I would immeditately obtain all names involved, name of agency, gent who said that, and immediately contact the Federal Trade Commission, and the attorney general of your state.
>This industry reigned in from calling people 25 yrs ago, making believe they were the city marshall, and were on their way to pick up someones furniture…….was regulated successfully by the FDCPA, the law mentioned above. The factoring business, buying and selling of debt has opened a whole new avenue of abuse, whereas they even sometimes will sue someone. like your situation, beyond the statute of lims with the hope the consumer doesn’t show up in court, court not knowing the situation gives judgement to shady attrny for agency.
>The debt collection agency business, originally corrected by the above law, has now reverted to practices like this, and are in need of new legislation to stop the abuse, also, the debt settlement companies are getting away w/enormous predator violations. Federal officials are focused on homeland security, I had a similar fraud situation, mailed all info to local FBI, actually spoke to an agent, who told me that much of the “schemes” in this situation are now on the backburner, homeland security their main focus.
>Immediatly contact the FTC & the Attorney General of your state and file a written complaint.

A New Breed of Debt Collectors

The last decade or so has given rise to a new version of an old phenomenon:  the bottom… Fair Debt Collection Practices Act – Law – Collection agency – Business – Financial Services

20. Collection Statute of Limitations