California Tax Legal Questions

The IRS generally won't take tax law violatoin referrals over the phone. The best way to report this is Form-3949-A. See: https://www.irs.gov/individuals/how-do-you-report-suspected-tax-fraud-activity From the details you provided he would have had to forge your name on the return and then cashed your refund check.... Read More

Hello Ms. Ocampo. Yes, you can apply through the IRS Offer in Compromise program to possibly pay less than what you owe. Acceptance of your applications depends on your current financial information and is not guaranteed. Please feel free to contact me to discuss your options. Thank you.  ... Read More

Hi Luis. If you believe your ex-wfie used your social security information for the tax return improperly, you should file IRS Form 14039, Identity Theft Avidavit and report to the IRS the transcretion. The IRS will then contact your ex-wife according and follow up with you. I hope this helps.... Read More

Your question is a bit odd. The taxes paid in connection with sale of a home are the documentary transfer tax. It is treated like all the other expenses of sale, essentially as an offset to the sale price, thereby reducing the gain on the sale, if any. Losses on the sale of a personal residence are not deductible. Perhaps some tax was withheld and paid to the Franchise Tax Board. If it was reported by escrow to your girlfriend, then it is hers, not yours. If (or to the extent) it was reported as paid for you, then you get to deduct it on your federal return and to treat is as withholding tax paid to the state.... Read More

Good Morning, The first step is to reach out to the Internal Revenue Service and Franchise Tax Board to see what records they have for you.  It is possible that they have been preparing tax returns for you and assessing liabilities each year.  If you have an existing tax liability then we would want to obtain a collection hold to prevent bank levies and wage garnishments while we work to resolve the underlying liability. If you were due refunds, most of those are lost to the statute of limitations, but it may be possible to claim your refunds for 2013, 2014, and 2015. Let me know if you need any assistance resolving these issues. Best regards, Adam Brewer, Esq.... Read More

No, it doesn't work that way.  You will report the annual income you receive in rents.  Then you will deduct your property annual deductions: mortgage interest, insurance, utilities, repairs and maintenance, property taxes, etc. The total amount of your mortgage payment includes principle and interest, and maybe property taxes and insurance.  The principle part of your mortgage payment is not deductible for income tax purposes.... Read More

Your wife's sister will have to file a gift tax return for her ownership interest in the property.  However, she probably won't owe a gift tax. Your wife will have a transferred basis in the property, equal to what her sister's basis was in the property. There is no reassessment of the property for property tax purposes on the transfer by a bona fide gift.... Read More

When the US person deposits money in the joint bank account, there is no gift.  However, when the foreign person withdraws money from that joint account, then there is a completed gift.  The US person can give up to $14,000 a year to the foreign person.  If the US person gives more than that, then the US person will be required to file a gift tax return, but a gift tax will not be owed until the US person exhausts his $5.45M lifetime exclusion.... Read More

It sounds like you have what is referred to by the IRS as a partial payment installment agreement.  This arrangement is available for taxpayers who cannot afford to pay their tax liability within the Collection Statute Expiration Date (CSED).  I can attest that this is legal.  For issues of morality please consult lawyers.com's sister site, KantPayTaxes.com Said another way, the IRS has 10 years to collect from you.  Once that 10 year period has run, the debt drops away and is no longer collectible.  There are a lot of nuances to this, but essentially the IRS looks at how much you owe and divides that by how many months they have left to collect.  If that amount is greater than your ability to pay, then they allow you to enter into a Partial Payment Installment Agreement.  The good news is that you may never pay the full amount to the IRS within the CSED, but the bad news is that they will file a tax lien. If you want to pay them less or no money you have a few options: 1. Currently Not Collectible:  This status is like saying, "I owe you the money, but I cannot afford to pay anything at this time."  Again, the IRS will file a tax lien, but you won't be burdened by a monthly payment and the Statute of Limitations continues to run. 2. Lesser Partial Payment Installment Agreement:  This is the same as what you have now, but with a lower monthly payment.  A lower monthly payment may be obtained by optimizing your Collection Information Statement (Form 433F) to obtain all possible deductions.  For instance, the IRS wlll allow a $60 monthly expense for out of pocket medical expenses ($144 if you are over 65).  If this expense wasn't factored in the first time they determined your ability to pay, you may be able to reduce your monthly payment by $60 or $144.  There are a handful of these issues that can make a big difference in the cumulative. 3. Offer In Compromise.  This is a settlement with the IRS.  You offer them a lump some payable over 1 or 2 years and if accepted your liability is resolved.  There are a lot of considerations with this resolution including your monthly income and expenses as well as you assets and liablities, but it is certainly an option. 4. Bankruptcy.  If your tax debt meets the requrirements of having been due for 3 years, filed for 2 years, and assessed for 180 days, then it may dischargeable through a Chapter 7 bankruptcy or considered Non-Priority Debt under a Chapter 13.  The catch here is that you need to file for bankruptcy and there won't be much benefit for a 2012, 2013, or 2014 tax debt. I hope this information helps.   Best regards, Adam Brewer, Esq.... Read More

Good Afternoon, You likely have a few options to resolve this issue, but I will touch on the two simplest methods: 1.  File The Return for Reconsideration.  You may be able to request Wage and Income Transcripts and other information from the IRS to determine the basis for the assessment of taxes.  The information may not be readily avaialbe since the return is from 14 years ago, but transcripts can likely be obtained one way or another.  If the information provided to the IRS from third parties (W-2's, 1099-misc...) is incorrect or shows that you should not owe the tax due, then you can file a new return for Reconsideration.  Once processed, this return should reduce the balance due. 2.  Wait Out the Statute of Limitations.  Since the tax is from 2001, it is likely that the IRS Collection Statute of Limitations will be expiring soon.  The Collection Statutute of Limitations allows the IRS only 10 years to collect from the date of assessment.  If the IRS still has time to collect, then you would want to establish Hardship Status or a Partial Payment Installment Agreement until the the CSOL runs. I hope this helps.   Best regards, Adam Brewer, Esq.... Read More

If you are providing a majority of his support and have no written agreement to the contrary, you can claim him. If you and she together are providing a majority of his support and you have a written agreement that you can claim him, you can claim him. If you are providing at least 10 percent of his support and nobody else claims him, then you can probably claim him.... Read More