California Tax Legal Questions

Can the IRS put a levy on your account? The answer to any question like that is "yes." Should the IRS do so if the debt is that of your parents and your parents do not have an interest in your account? The answer is "no." So, you must hope it does not occur so that you need not engage in a battle of proof.... Read More

Paying off a mortgage is not a deduction. As a U.S. citizen or resident you are liable for taxes to the U.S. government on your worldwide income or gains. If you cannot determine the basis (the donor's basis), then you must discuss with your CPA to determine how to proceed. Presumably you can only use your best estimate and include that information (that it is your best estimate) on your return. Yes, there are ways to minimize capital gains taxes, even on an asset that is being sold in Germany. For example, you can trade that property for an investment property in the U.S.... Read More

Your question is not about taxes, and I am only a tax lawyer. You need a corporate lawyer. However, for a quickie response: If you are the president, and you are acting in the course and scope of your employment as president, then you should not have personal liability. Caution: you could have personal liability for the corporation's failure to pay the employer's share of payroll taxes.... Read More

You should talk to your CPA who should have handled the audit for you. You should not handle an IRS audit by yourself. What would I do if it were me? Since I know that I pay all of my taxes and do not take inappropriate deductions, I would contact the auditor and find out what the result was. Personally I would not let sleeping dogs lie. The IRS may claim it sent you a notice. If you did not receive it then there may be interest running. I can assure you that others would advise you differently, that if you are absolutely certain that did you did not receive a notice, do not contact the IRS because the statute of limitations on the IRS may now have passed, or will pass before the IRS figures it out. They would advise you that because they are not sure that you pay all of your taxes and have not taken inappropriate deductions.... Read More

That is too general of a question. If the company owes payroll taxes for employees, then you may have personal liability as an officer/manager. If the corporation owes back corporate taxes, it is unlikely that you would have personal liability. However, the answer may depend upon the state in which you live. Therefore, the best approach is to hire a professional in the state in which you reside.... Read More

It sounds like your tax returns are being audited by IRS. You are required by law to maintain tax records. If you are not able to substantiate the numbers you claimed on your tax returns with the relevant records, IRS has the authority to make the changes they deem to be necessary and you will be assessed additional tax, interest and penalties.... Read More

Without doing research, I am uncertain. It sounds to me like it is the replacement of a personal asset, so that it would not be taxable income. (Contrast: if you received a settlement from your employer for lost income, it would clearly be taxable income to you.) However, you should check with the CPA who prepares your income tax return and let that professional do the research.... Read More

Locus poenitentiae is a Latin phrase associated with contractual law which means opportunity to withdraw from a contract or obligation before it is completed or to decide not to commit an intended crime. This signifies repentance in the context of criminal law and provides an opportunity of withdrawing from a projected contract, before the parties are finally bound or of abandoning the intention of committing a crime.... Read More

If you are a legal resident in the U.S. you must file a federal income tax return every year and report ALL your US and world-wide income, including dividends from a Mexican company. If you are married you may file a joint return with your wife, or file married filing separately. Generally, a joint tax returns receives a slightly better tax treatment, although you should consult with an accountant for your particular situation.... Read More

If your son had check signing authority and did, in fact, sign some company checks, the IRS could argue that he was a "responsible official" and propose to assess the trust fund recovery penalty against him for part of the unpaid payroll taxes. (IRC 6672). However, you have a right to appeal IRS' proposed assessment against your son, and even take the case to the US District Court. However, you should retain a knowledgeable tax attorney to help you through the process.... Read More

If you cannot pay the money then the State will have no choice but to accept payments from you. However, that will not prevent the State from filing liens on your assets. You do not necessarily need a tax attorney. Some CPAs specialize in working out payment agreements for their clients. Then there are people who used to work for the IRS or FTB who specialize in working out payment agreements with both branches of government, e.g., former IRS chief of collections in L.A.... Read More

A partnership valid in one state would be entitled to conduct business in other states. However, there are many potential issues that you should discuss with your CPA. For example, the partnership may need to file tax returns in other states (in which it conducts business); it may need to file with the Secretary of State in the other states (in which it conducts business). Again, those are only examples.... Read More