California Tax Legal Questions

The test centers around the support provided for the children, not your step daughter. You didn't say anything about marriage, etc. so what I say is based only on what you mentioned. If you provide over one-half of the support for these children then you can take them as dependents. You would include food, lodging, medical care, clothing - the basic necessities of life. To the extent you are reimbursed the amount of support you provided would be decreased. I hope this helps. If you go to www.irs.gov they often have pamphlets explaining various elements of the Internal Revenue Code and you could do a search for "dependency exemption."... Read More

Your basis in the house is its value at the date of your late husband's death. Gain will be measured against that amount. If you file a joint return with your new husband, you can exclude up to $500,000 of gain. (If you file separate, only $250K.) If you buy another house in Los Angeles County and are old enough, you may be able to keep your low property taxes and transfer that level to the new house.... Read More

Anonymous, You don't necessarily need an attorney to file past due returns.  The most important factor is that whoever you hire should be experienced filing delinquent tax returns and with working with IRS and Franchise Tax Board Collections.  That said, a tax attorney is usually quite familiar with this type of matter and will be a great resource for you. Since there is a tax liability it is likely that you will find that there are two fees for resolving this type of tax case. First, there is the tax prep fee which will vary depending on the complexity of the returns that must be filed.  Second, there is the "tax legal" fee for obtaining a collections hold, gathering necessary information from the tax agencies, and resolving any resulting tax liability after the returns have been filed.   For price, it is tough to say.  I would need more information before giving you a quote. Best regards, Adam Brewer, Esq. 1-888-351-3707  ... Read More

Well, you live in the community property state, so your spouse's income is community property. Essentially, the IRS can look to half of that income, technically speaking, to pay your taxes even though your spouse had nothing to do with the tax debt you incurred. Also, even though your spouse is not liable, that income is basically available to you to support yourself. So while the IRS cannot really make your spouse pay your taxes, the IRS may count that income as available to you for your own financial support. So unfortunately, that request is valid.... Read More

Anonymous, To answer this question I will need more information.  The IRS does have the authority to secure Arrest Warrants and Search Warrants, but that is done as an investigative technique in criminal tax cases. This sounds more like the IRS may have issued a lien or levy.  To discuss your tax case in more detail feel free to call my office at 1-888-351-3707.   Best regards, Adam... Read More

Anonymous, I have many current and past clients who had not filed tax returns in many years.  Generally, the following steps should be taken to resolving your tax case.  Of course, each case is different and you should consider retaining an experienced tax practictioner to represent you. 1.  Reach out the IRS and California's Franchise Tax Board (FTB) to attempt to obtain a collections hold to prevent collection activity like bank and wage levies.  While speaking with the tax agent, we request that your tax transcripts be faxed over to determine what tax information has been reported to the IRS and FTB.  Additionally, the transcripts will fill us in on any returns that were prepared by the IRS or FTB on your behalf and help determine if we need to file all, some, or none of the missing returns. 2.  The next step is to prepare and file the missing returns using the tax transcripts and any documents or information you may regarding your taxes. 3.  After the returns have been filed and processed by the IRS and FTB, there may be a tax liability.  If so, we evaluate options to repay or decrease the tax liability.  These options include installment agreements, hardship status, offer in compromise, and bankruptcy. If you would like to discuss your tax case in more detail please give me a call at 1-888-351-3707 or 619-591-9500. Best Regards, Adam... Read More

Federal tax liens are recorded at your county's probate office. Most counties should have a computer system that you can use which will allow you to enter your name and/or address and see if any state or federal tax liens have been filed. The clerks of the probate court are usually available to assist you if you need any help with their system. Additionally, if you have the ability to obtain a credit report, then the lien should show up on your credit report. However, you usually have to pay a fee in order to get a credit report, whereas you can use the county's probate court record system for free at the courthouse. Lastly, you can always contact the I.R.S. to determine if a lien has been filed against you.... Read More

Darcy, My office works with many taxpayers who have not filed Income Tax Returns for several years.  It is more common than you may think and usually relatively easy to fix. If you do not have any of your tax documents from previous years, it is possible to obtain income information from the Internal Revenue Service and California's Franchise Tax Board.  Each agency will be able to send to you or your representative Account Transcripts which contain the information reported to the agency on W-2 and 1099 forms by your employer, bank, mortgage holder....   Assuming you were a wage earner (W-2 employee) it is quite easy to gather this information and file an accurate income tax return.  If, however, you were self employed or an independent contractor it is more difficult to determine your income and expenses.  In that case, bank statements can often be used to piece together your income and expense information. Once your income information is received, it can be determined if you had a filing requirement for the tax years 2004 to 2012. Please let me know if you require any additional information or assistance. Best Regards, Adam Brewer, Esq. AB Tax Law 1-888-351-3707... Read More

Generally, the Franchise Tax Board has 4 years to propose an increased tax assessment.  This 4 year period begins on the date the return is due or the date of filing, whichever is later.   Your 2010 return was due April 15, 2011, without an extension to file.  Therefore, the state has until April 15, 2015, at a minimum, to propose an increase tax assessment. If you are unable to pay the additional liability plus penalties and interest, you may request Currently Not Collectible or Hardship Status.  Penalties and interest continue to accrue, but the Franchise Tax Board will not attempt to collect by bank or wage levy. Of course, review the proposed assessment with your tax preparer as soon as possible to preserve your right to appeal if necessary.  ... Read More

I don't think your best course of action would be legal action against your wife, but instead focusing on limiting your liability for her failure to file and her unpaid income tax.   When you file a joint income tax return, both parties are jointly and severally liable for any tax debts. That would mean that if the IRS and California Franchise Tax Board (FTB) were unable to collect the tax debt from your wife, they would attempt to collect all of the tax debt from you.  With that in mind it is probably best to file Married Filing Seperately and attempt to protect yourself from your wife's tax liability. Because California is a community property state the IRS and FTB may still try to assess her tax debts against you.  If, however, you have filed MFS you will have a much stronger argument against them assessing the tax liability against you.... Read More