The IRS Audit Blog

Posts Tagged ‘government’

Question: What’s the best way to transfer money from overseas from proceeds of property owned by US citizen to avoid tax

I’m trying to figure out the best legal way to minimize taxes in transferring funds from overseas. These funds are close to $250K and are proceeds from the sale of property located outside the US, but owned by a US citizen, in this case my father. I am not sure if the gift law would apply here since he’s a citizen. Also, what documentation is required by the IRS?

Answer: 1. If you transfer money, there is no tax implication.

2. You father must report the sale of the property on his U.S. tax return. He must file the tax return if the income is more than the filing limit.
If he paid taxes on the profit in a foreign country, he will get foreign tax credit by filing form 1116.
Read: http://taxipay.blogspot.com/2008/03/us-citizen-or-resident-with-foreign.html

3. If he owned the house for more than two years and lived in the home, then he may exclude profit from the sale up to $250,000
Read: http://taxipay.blogspot.com/2008/03/profit-from-sale-of-your-home.html

4. If your father gifts you property or money, there is no gift tax on the receiver of the gift. But person giving the gift must file gift tax return, even he may not owe any taxes as there is a life time exemption of 1 million.
Read http://taxipay.blogspot.com/2008/03/us-gift-tax.html

IRS Awards $4.5M to Whistleblower

PHILADELPHIA— An accountant who tipped off the IRS that his employer was skimping on taxes has received $4.5 million in the first IRS whistleblower award. The accountant’s tip netted the IRS $20 million in taxes and interest from the errant financial-services firm. The award represents a 22 percent cut of the taxes recovered. The program, designed to encourage tips in large-scale cases, mandates …

Owning An IRS Lawyer: Marc Stevens – Part 1

Question: I need to find the tax forms that the employer sends out for past year taxes catch up . Any answers?

I need to find out what I earned on past jobs to do some past tax filing I know I can get the forms to file from irs.gov but where can I get the other forms that show me what I earned and how much was deducted etc.

Answer: Your FIRST action should be to contact the employers. If that does not work, use IRS form 4506-T to order transcripts of your account.

Tax Tip: April 18 filing deadline approaching; IRS offers tips to taxpayers

The IRS wants to remind taxpayers that they have less than two weeks remaining until the April 18 filing deadline and that they can use IRS Free File to do their taxes or file an extension.

Debt Resolution FAQ13 What are the Tax Implications of DebtPro123

Question: Does anyone know how to wave the $800 LLC Tax Fee (in California) for first year small business owners?

Where do I download or find the form from the state or IRS?

Answer: The minimum franchise fee in CA is strictly a state issue; the IRS has no involvement with it. I’ve never heard of CA waiving it.

Tax fraud behind bars

Florida has achieved a new No. 1 ranking, but it’s not one to brag about: It leads the nation with the most prison inmates filing fraudulent tax returns.According to the Treasury Department, of the nearly 45,000 phony tax return claims filed in 2009 by prisoners, 8,777 of them (about 20…

The 411 for Your Form 1040

Question: what do i do if i missent my federal tax forms to the state treasury, and the state tax forms to the IRS?

do i need to re-send my tax forms to both agencies?

Answer: you need to send them to the right taxing agencies and make sure that you get them to the right places the second time

Tax Tip: 6 facts about choosing the standard or itemized deductions

When filing your federal income tax return, taxpayers can choose to either take the standard deduction or to itemize their deductions. The IRS has put together the following six facts to help you choose the method that gives you the lowest tax.

Removing IRS & Federal Tax Liens

Question: Widow of IRS employee killed by Joseph Stack’s plane is suing pilot’s widow?

AUSTIN, Tex. – The widow of the Internal Revenue Service employee killed when a Texas man crashed his plane into the agency’s office is suing the pilot’s widow.

The lawsuit against Sheryl Stack seeks to determine if her husband, Joseph Stack, left behind insurance policies or other assets, attorney Daniel Ross says.

Ross represents Valerie Hunter, whose husband, Vernon Hunter, 68, was killed last week when, authorities say, Joseph Stack deliberately crashed his single-engine plane into the IRS office.

The pilot left behind a lengthy anti-government Internet posting blaming the IRS for his problems.

The lawsuit, filed Monday, says Sheryl Stack should have warned others about her husband.

http://www.nydailynews.com/news/national/2010/02/24/2010-02-24_widow_of_texas_irs_attacker_sued.html

What do you think of this ???

Answer: It seems like a greedy woman and an ambulance-chasing lawyer got together to try to sue for more than the deceased would have made in 10 lifetimes. This is a perfect example of the need for “loser pays” tort reform. A counter-suit would be in order against both the plaintiff and her attorney. If I were on the jury, the case would be dismissed out of hand. If anything, a monetary award would be made to the defendant in compensation for grief and suffering caused by the plaintiff and her attorney.

America 2.0: How to create a true ‘new deal’

My recent column suggesting Congress should make a down payment on restoring our trust by returning the excess employment taxes workers have paid since 1984 hit a nerve. Reader mail carried messages of frustration and anger — a sense of futility a …

The Disaster At The General Accountability Office