The IRS Audit Blog

Posts Tagged ‘amnesty’

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Question: Common Law Marriage In Texas & Taxes — Help!!?

I live in TX which recognizes common law marriage. I was common law married to my husband (lets say husband #1) for 5 years when I met some other guy who I unfortunately had a fling with…

The new guy told me my marriage wouldnt matter if husband #1 didnt know because of a 2 year statute of limitations, and he convinced me to marry HIM “formally”. Now, #2 didnt work out. We only “married” for 2 months and split up (fling). Now I am back living with #1, and #2 is filing for a formal divorce. And from a legal standpoint I beleive Im still common law married to #1 (with whom i currently reside) and I dont know what to do…

and just for the record, my common law marriage to #1 can be proved from witnesses, 5 years or IRS tax records (as married), joint accounts, etc.

my total time seperated from #1 was ONLY one year, which means the statute of limitations didnt lapse either. Now, should i file my taxes this year as married to #1? What about this divorce from #2?

Help!!!

Answer: Just get an annulment and get it because you were told that #1 is your legal spouse.Ignorance is not excepted by the law.Get an annulment NOW.

Are You Eligible For Some of The $37.5 Million in Unclaimed Taxes?

People who did not file in 2007 could get money back.

Statute of Limitations

Question: IRS Tax Lien: what is its effect, if any, after the 10-year statute of limitations has expired?

My uncle has unpaid income tax liabilities from 1999, 2000 and 2001, amounting to around $25,000 in each year. With accrued interest and penalties, the amount now owing is probably well north of $100,000. He received Notices of Federal Tax Liens shortly after the taxes went unpaid–the last notice was probably in 2002.

When the 10-year period has run on each of these Notices, does the IRS file a Release of Lien or does it release automatically? I’ve also read that the IRS can re-file liens–does that require special circumstances, or can they simply renew the 10-year period over and over again? Finally, what if my uncle wanted to purchase real estate at some later date: if the liens have expired and are unenforceable, would his later sale of that property be affected in any way?

Thanks in advance for your replies.

Answer: First of all, the IRS isn’t the ravenous beast that everyone likes to think it is. For the most part, the IRS is that lazy dog in the yard that chases squirrels and sleeps most of the time. I’ll answer your questions in the order you asked them:

1. When the 10-year period has run on each of these Notices, does the IRS file a Release of Lien or does it release automatically?

The liens automatically release, but the IRS won’t automatically send your uncle a formal Certificate of Release. He’ll have to request that himself. I would give it some time before requesting the Certificate of Release to make absolutely certain the liens are gone. Sometimes extenuating circumstances can extend the lien enforcement period somewhat.

2. I’ve also read that the IRS can re-file liens–does that require special circumstances, or can they simply renew the 10-year period over and over again?

The IRS technically has the capability to re-file a lien, but it rarely does so. If the IRS were interested enough in any of your uncle’s property, it would already have started seizing things. Thus, the IRS really has no need to ever re-file a lien. It either seizes assets during the lien period or it doesn’t. The provision is there as a “just in case” measure, but it isn’t something the layperson should really worry about.

3. Finally, what if my uncle wanted to purchase real estate at some later date: if the liens have expired and are unenforceable, would his later sale of that property be affected in any way?

The only way a tax lien would impact your uncle purchasing property would be on the negative impact it has on his credit report. Unlike most debts, tax liens can hang around for 15 years if they go unpaid. Since ten years have already passed, those liens don’t have much longer to go before they’re gone. Plus, the older something is, the less impact it has on your overall score.

When he sells his home he will need to request the Certificate of Release from the IRS and file it with either the land records office in his county or the Secretary of State’s office, depending on where he lives.

Once the tax lien expires, the debt is unsecured and falls under the statute of limitations for unsecured debt enforcement in your state (which has probably already passed). Yes, the IRS can pass it to a collection agency, but because so much time has passed the collection agency will neither have the legal right to place the debt on his credit report or sue him. Once the tax lien officially releases, its over. Just tell him to hang in there.

Tax Resolution Scams 101

Tax resolution firms are a misnomer.? They exact high fees from unassuming consumers and seldom reso

Escape the Tax Guy: Interactive Quiz

Paying back taxes, managing college savings

How to clear up unpaid back taxes and how to report contributions to a college education fund: Those topics are tackled this week by IRS expert Jesse Weller, one of McClatchy Newspapers’ “Ask the Experts” writers.

Offer in Compromise | IRS Tax Debt Relief

Question: U.S. employer hiring out-of-country consultant ~?

I am a U.S. employer needing to hire an out-of-country consultant for some work. Since this is my first time doing this, I need to know:

1) Are there any forms I need to file with the IRS when I hire this individual? Do I need to get a letter from him stating he is not a U.S. citizen?

2) This consultant will not have taxes taken out (of course). Is there a form I need to file at the end of the year with the IRS?

3) Is there anything I need to send this individual at the end of the year showing how much I paid him (much like a U.S. W2)?

Thank you for your time!

Answer: Get a letter from him affirming that he is NOT a US Citizen/resident.
And have the letter affirm that the work is NOT being done in the US.

Then you keep the letter with your contract.

No W-8BEN, ****NO***** 1099-Misc.

Power Companies Seek 8.2 Percent Rate Hike in West Virginia

Appalachian Power and Wheeling Power say they’re seeking an 8.2 percent rate increase in West Virginia

Tax Tips & Information : How to Find Tax Forms & Instructions

Question: PLEASE, HOW DO WE ACCESS IRS INCOME TAX FORM 1040A FROM THE IRS, NOT **xxxooo, CURSES?

Hi out there in ask.com. we have been struggling all morning to simply [print out] IRS Form 1040A and we are going every where but there! Maybe we’re just dumb! thanks, counsel_relationships@yahoo.com. Please throw us a life line, somebody!!

Answer: Your computer needs to support pdf files (which most do anymore). If so, simply click: http://www.irs.gov/pub/irs-pdf/f1040a.pdf

Colleges offer free tax preperation for low-, moderate-income residents

Filling out 1040EZ, 1040A or the basic 1040 forms can be taxing.

How to Complete and File a 1040A Tax Form : 1040A Education Credit Tips