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Posts Tagged ‘law’

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: Estate Tax question….I think the PR made an error?

My cousin was personal rep for my late aunt’s estate…in Michigan. Everything I have read indicates that the first 2 million dollars of the estate is tax exempt. The estate was only $274,000, so should be totally exempt, yet my cousin paid over $30,000 in 2006 estate tax and about $3,000 to Michigan estate tax. NOW comes the kicker…2 days after he signed the final papers ending his responsibility for the estate, he died! Am I right that he should not have paid the $30,000 and $3,000 because of the exemption that SHOULD have been taken? NOW WHAT???? I just received final papers to sign that will go to Probate and then I will receive my part of the estate. If I sign, and that $30,000 was paid in error to the Feds, can the estate recoup the money? What should I do? The attorney apparently assumed that the return filed was correct or he would not have sent us the final papers to sign off on . I know $30,000 is not a big sum, but to me, 1/4 of that is a lot of money!

Answer: How does this sound for a first step? Call, send a letter or email to the atty who sent you the papers what you think the error is and why you think there is an error. He should be able to quickly figure out if their was a mistake and if so file and amended return and get the money back or explain to you why your cousin was correct in paying the taxes.

Cash-strapped states rethink Hollywood tax breaks

Thanks to a tax break used to lure Disney filmmakers away from North Carolina to coastal Georgia, Harry Spirides figures his beachfront hotel raked in an extra $85,000 because Miley Cyrus spent a summ

Insights In Law: Property Tax Foreclosures

Question: How do I know if I am legally shielded from my small business Sub S corporation?

This is a followup to a previous question. I’ve got a sub S corporation for a small business that I’ve kept established with Florida state for years. Recently, the Yellow Pages has instigated a lawsuit against my company for a bogus debt they claim I owe. The company is very small – basically just me. I do file and pay the annual “report” for the corp. Also, I keep expenses/income reasonably separate with a merchant and checking acct in corp name. However, I do make purchases, transfers, etc. from the corp accts to my personal. I haven’t yet “paid myself a salary” on income tax (I know I should). However, all I want to know at this point is could this creditor realistically go after my last savings held in a personal saving acct? I’ve had that money saved up for years before this hapenned. Thanks for any tips as I can’t get entirely straight answers from attorneys I have paid.

Answer: Yellow pages cannot go after your personal savings if they are filing against your business. They can only file against your business.

Second, you are going to get audited for doing the practices you are doing. You are illegally taking personal money out of your business account. You have to pay yourself and not continue these practices. If the IRS looks into this they will audit you and find out there’s more years to audit you still. You’ll end up owing the feds tons of money for these types of practices.

Do not pay your personal stuff out of your business account, you’ll get caught eventually.

If these yellow pages are starting a lawsuit, great. Let them. They have to prove that you agree’d to their services, they have to prove you are liable for the money they are claiming. All of it rests on them to prove you owe them. They need to prove that they provided a service that you agree’d to pay for. Should be easy to prove that you did nothing of the sort and you should be free and clear from this.

When it comes to debt collectors, you can send in a written statement that this service was never agree’d upon and that you had no idea of it until long after they claimed it. You have the legal right to ask them to attach your letter to this debt, so that anyone bringing up your credit sees it right away. I know it has to be written within so many words, so you need to find the guidelines there. I’d do that part immediately!

Lastly, why pay all the extra for a corp if you really aren’t running your business like one? Why not just work off of your social security number instead? It would save you quite a bit of money every year and you could pay your personal bills and your business ones out of the same account legally, instead of illegally like you are now. Really makes little sense for you to have an S corp under your circumstances. I can’t see paying thousands of dollars worth of fines if the IRS gets their claws into you just so you can buy toilet paper or groceries out of your business account.

Back to your main question. Personal and business cannot be legally tied together. If i file bankruptcy on my business, the money won’t be able to be taken from my personal account. I have a feeling, with the way you are doing your bank accounts, that’s why the lawyers aren’t helping you. They see you doing things illegally and don’t want much of a part of it and won’t give solid advice due to it. If they did, they could be liable as well. If i heard you robbed a bank, from your own lips, and didn’t go to the police, i could be charged with accessory. This is why you aren’t getting good help or good legal advice. With the way you are doing things, your s corp cannot protect you as well as it could have if you were doing things legally.

If this company files to go through your records, which it could have a right to do in a lawsuit, it could easily prove you fraudulent there. Which would almost ensure you looking guilty in other fields as well. Like finding out your 20 is missing and knowing there’s someone who was once picked up for shop lifting. You’d accuse them and believe it because you could prove they once stole before.

Your business practices are fraudulent with the way you pay for things. It’s easy to “pay” yourself instead and put the money into a personal account then it is to do it the way you are doing it. You can pay yourself as often as you need so that your stuff is paid for. If you have too, get a personal American Express card that has to be paid off at the end of every 30 days. Then buy all your stuff on it and then pay it off at the end of every month with one large check to yourself in that exact amount.

Local sites would be affected if government closes down

Prospects for an imminent shutdown of the federal government seem unlikely, but even if the government does shut down temporarily starting Friday, the effects locally would be limited to “non-essential” services — for instance, staffing the Lincoln Home National Historic Site.

Drunk District Attorney hits and runs from teenager.

Question: Where can I get a guide on business formations?

I’m not trying to get free tax advice or anything. I’m doing a presentation at my CPA firm for the interns on business entitites. I have a working knowledge of all 3 major types (S and C Corps, LLCs) but I just wanted to know if there is somewhere I can get a more complete source of information other than the IRS website (this is for college kids so I don’t want to bore them with a bunch of IRS Sections). Basically I’m looking for something with examples of how compensation to members or officers work on both the business level and the personal level. Thanks folks

Answer: shouldn’t the interns have been exposed to those concepts in accounting 101?

Attorney General Holder: Countrywide Chief’s Most Valuable Friend

U.S. drops criminal probe of former Countrywide chief Angelo Mozilo Mozilo’s actions in the mortgage meltdown — which led to $67.5-million settlement against him — did not amount to criminal wrongdoing, federal prosecutors have determined.

NY Officer Suspended in ‘Asthma Girl’ Death

Question: Can you request W-2 forms from employers on the IRS website?

We live in Alaska, my guy works for Wal-Mart and in the middle of our move has lost his W-2 form. Is there a place on the web that you can download W-2 forms instead of going to the IRS office? I appreicate the help!

Answer: No.

For this year, you will first have to deal with Wal-Mart to try to get a copy of your W-2 form. Ask them to send a duplicate. I don’t know if Wal-Mark also posts W-2s on a website for employees or not, but if they do, that is a possibility.

The IRS will not have a copy of your W-2 until about May or June (they get them from the social security office).

Watchdog group criticizes U.S. Rep. Tim Walberg, other members who sleep in their D.C. offices

The Citizens for Responsibility and Ethics in Washington has asked the Office of Congressional Ethics to look into whether members of Congress who sleep in their offices are violating House rules.U.S. Rep. Tim Walberg, R-Tipton sleeps in his office and…

★★★★★ Plane Crash In Austin Texas – Suicide Attack On IRS Offices – VLOG