California Tax Legal Questions

The question is going to be whether or not the refund is void, or it is to check which is no longer negotiable. Your problem is the 1997 is beyond almost every statute of limitations and most probably you are not going to be able to enforce this payment. That is not firm advice, just a statement of general principal and therefore I would suggest that you take all of the detailed information to an attorney or tax accountant to see if there is anything you can do to recover or receive credit for your money.... Read More

I am not certain, but I believe California's Franchise Tax Board may have performed a filing enforcement.  That means that they didn't receive a return from you so they prepared it themselves based on what they think you earned.  They estimate your earnings based on prior tax returns, licenses you hold with the state or local government, and third party documentation such as W-2s and 1099s.  I see this quite often.  The easiest way to reduce the liability is to prepare and file the 2007 income tax return.   Let me know if you have any other questions. Best regards, Adam Brewer, Esq. AB Tax Law APC 1-888-351-3707... Read More

I'm not certain what Turbotax is referring to, I can say with the higher liability the IRS or Franchise Tax Board is likely to want more money to satisfy the debt within the Statute of Limitations.  In order to maintain your $200 per month payment on the higher liability, you will likely need to submit a Financial Statement and supporting documents to show that you do not have the ability to pay more.   As an example, if you owe $26,275 to the IRS, then they will want the entire amount within 72 months.  That works out to $365 per month.  If you can't pay that amount per month, then you will need to prove it.  Let me know if you have any other questions. Best regards, Adam Brewer, Esq. AB Tax Law APC 1-888-351-3707... Read More

Unfortunately, the Collection Statute of Limitations doesn't begin to run until the return has been filed by the taxpayer.  In this case, since it appears that your father, the taxpayer, never filed the return the Statute of Limitations has not yet started and the state continues to have the ability to assess the tax liablity. With regards to the bank levy, your father's bank will hold the funds for atleast 10 days after having received the Withholding Order from the Franchise Tax Board.  In that time, your father can attempt to have the Withholding Order released by either resolving the tax laiblity by filing delinquent returns showing no taxes owed or by establishing a financial hardship using Form 3561. Let me know if you have any further questions. Adam Brewer, Esq. AB Tax Law APC 1-888-351-3707... Read More

Yolanda, They won't find you to be liable per se but since California is a community property state you may find that your community assets are subject to collection.  The most direct example of this will be an offset of any tax refund you are to receive.  This means the State of IRS will use the refund to pay down the existing liability of your husband. Another problem your husband's liability may create is that your bank account and possibly your wages will be subject to collection action -- levies.  This is because once you marry, absent a prenuptial agreement, half of your income is considered your husband's and can be used to satisfy his premarital tax liability. The best method of preventing collection action is to have your husband reach a resolution such as Installment Agreement or Offer in Compromise. Best regards, Adam Brewer 1-888-351-3707  ... Read More

If I understand your question correctly, you have no income and you want half the tax refund. ?You can't claim the child tax credit if you have no income because you didn't provide at least 1/2 of the child's support. For most separated couples, their taxes will be lower and their refund higher if they file "married", however, this needs to be done by agreement of both parties and how the refund is divided also needs to be agreed in advance by both parties. Neither party can claim the Earned Income Credit if they have to file "Married filing Separate", since this can be up to $6,000, it's a powerful incentive for the couple to file "Married" and agree to split the refund.... Read More

The IRS should not have assessed the additional tax liability without providing you or your representative the opportunity to present supporting documentation or additional information.   If the auditor proceeded as you described, you should appeal the results of the audit as soon as possible.  Failure to appeal or file a tax court petition within the prescribed time limit (usually 30 and 90 days) may result in you losing your rights to an appeal prior to the final assessment of the tax liability. Best regards, Adam Brewer, Esq. AB Tax Law 1-888-351-3707    ... Read More

The taxes that are taken out of your paycheck is known as your withholding.  This amount is determined based on your wages and the number withholding exemptions you claim on your form W-4, but isn't necessarily an accurate estimate of taxes owed. After your employer withholds the taxes from your wages, they are required to deposit this money with the IRS and the State of California's Franchise Tax Board (FTB).  At the end of the year, you prepare and file your income tax returns to determine if you owe additional taxes to the IRS or FTB or are owed a refund.   Some taxpayers do not have a filing requirement because they do not make enough money.  However, based on the information you provided above, you do have a filing requirement.  Failure to file can result in higher tax debts if the tax agency prepares the return for you plus penalties, interest, criminal charges in some cases, and a loss of potential tax refunds if you were otherwise entitled to a refund. My advice to you is to prepare your past due and current tax returns as soon as possible.  If you are owed a tax refund you only have three years to claim your refund by filing an accurate return.  For 2010 returns, that deadline is April 15, 2014. Let me know if you have any additional questions. Adam Brewer, Esq. AB Tax Law 1-888-351-3707... Read More

You said W-2G so I am assuming this is for gambling winnings.  If not, correct me, but the advice is generally the same whether the income was from gambling (W-2G) or wages (W-2). It sounds like there are several issues at play here.  Accountants may be held liable like most professionals for breaching their duty of professional conduct.  Whether the accountants advice falls below the level owed to your wife as the client is a question better suited for a civil attorney. As a tax attorney, my concern in this matter would be whether the funds withheld from your wife were probably deposited with the IRS and State.  Additionally, if the funds were not properly allocated, does your wife now have a tax liability owed to the IRS or State or is she owed a refund.   I would say the first step would be to request transcripts from the IRS to determine what was reported to the IRS and what was deposited in the form of withheld taxes.  From there, you will have a better understanding of what mistakes were made by either the withholding agent or the accountant. Best regards, Adam Brewer... Read More

Unfortunately the IRS will not reduce a tax debt based on a later charitable deduction.  In fact, when determining your abiliity to pay under an installment agreement the IRS limits the expense that can claimed for charitable deductions. While it is honorable that you would like to make such a generous charitable donation, if you have an asset that is worth $50,000 then it would most likely be prudent to liquidate the asset and use the proceeds to settle with the IRS. Best regards, Adam Brewer... Read More

This sounds like you received an incorrect 1099-K.  A 1099-K is a Third Party filing used to inform the IRS of payment processing. I would first try to contact the processing company and request that a corrected 1099-K be issued.  If they are unwilling to issue a corrected 1099-K, you should attach a note with your 2013 tax return explaining the problem and detailing why the 1099-K is not listed as income on your tax returns.  Additionally, I would recommend providing a copy of the 1099-k to your employer so that they can properly report the income on their return and perhaps also attach a note on their return. Hope that helps. Adam Brewer Extra Information on 1099-K's can be found at: http://www.irs.gov/uac/General-FAQs-on-New-Payment-Card-Reporting-Requirements... Read More

From the perspective of the Internal Revenue Code, it depends on which of you pays over half (50%) of the support for the children. Support items would include food, lodging, medical care, education and the like. The law doesn't ask who earns more simply who provided over half the support in any given year.... Read More