New York Tax Legal Questions

Under this scenerio you are not employed. Also, the IRS doesn't ask the question "are you employed". What they ask is do you have income and that usually means employment. However, income can come from investment, pensions, capital gains and a myriad of other sources. Here is the problem; Paypal could report the activity from this account and that will be in your name. The IRS will get a copy of anything Paypal reports, and now the IRS will expect you to file something. If this happens you could likely sort it out, but you are not going to want to spend the time and frustration to do so. Did I mention letting somebody else use your account like this is a horrible idea?  ... Read More

Hi. I am sorry to hear fo your loss. I hope you are doing well. Technically you do not have a debt with the IRS, your late wife carries that debt. So you are not "on the hook" for the debt. If probate has been opened, the IRS will be a creditor and try to collect on her assets to pay that debt. Conceivably the IRS could come back and audit those returns and have you listed as the spouse instead of the dependant. The statute of limitations to audit is three years after the due date for the tax return or the date the tax return was filed, whichever is the most recent. I hope this helps. DISCLAIMER: THIS ANSWER IS NOT LEGAL ADVICE.... Read More

Paul - yes you can deduct the difference between box 5 and box 1 as a capital loss.  You will need to see if you made any contributions in 2012.  If you did, you will need to prorate box 1 between the contributions made before 2012 and those in 2012.  The contributions made before 2012 will be long-term capital losses and those made in 2012 will be short-term capital losses.... Read More

Mr. Barnhill is correct, but to clarify, as long as your father does not give you more than $14,000. a year that gift is not counted in the lifetime total. Also if your mother is still alive and married to your father, with her permission, he could double the amount as a "split gift", and still have no tax liability. ... Read More

1) The federal government has nothing to do with franchise taxes. Are you mixing up IRS and Ohio? 2) If the S corporation didn't do any business, how was a return prepared, filed, and a tax of $1800 paid? 3) Did you get a tax ID number for the S corp but used it for the LLC? I imagine an offer and compromise might be possible, but you need to get all of the filings done correctly, first. *Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.... Read More

In all likelihood, the I.R.S. will not refund the money to you until they have finished the review process of the matter, and until they have determined that the money was erroneously paid to another taxpayer's delinquent account. Once the matter is resolved, the I.R.S. should refund your money, although they may require that you file a petition for refund in order to formerly request the refund.... Read More