Illinois Tax Legal Questions

The easiest way to set up a payment plan, is to simply start paying a regular amount. Calculate the amount by paying at least the interest which is currently 3.00% per year plus the amount of taxes divided by the collection period. The collection period is 10 years less the time since you filed the return. For example, if you owe $3,000 on 2012 taxes. The interest is $90 a year ($3,000 x 3%) and the amount divided by the collection period is $3,000 / 7 years = $429. Add those together gets you $519 dollars a year or $44 dollars a month. Pay at least that much every month. Be sure to write that the payment applies to 2012 taxes on your check and the transmittal.... Read More

Extensions for Individuals If you are not able to file your federal individual income tax return by the due date, you may be able to get an automatic 6-month extension of time to file. To do so, you must file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return by the due date for filing your calendar year return (usually April 15) or fiscal year return. Additional extension of time for taxpayers out of the country. In addition to the 6-month extension, taxpayers who are out of the country can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). To request this extension, you must send the Internal Revenue Service a letter explaining the reasons why you need the additional 2 months. Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0045... Read More

It is possible to take deductions without a receipt as long as you can prove the expense with reasonable certainty. For example, if you drive from Cleveland to Chicago for a four day business trip and you have hotel receipts in Chicago, you can deduct the travel expenses based on reasonable estimates of the cost of gas, tolls, meals, etc. If your business is home remodeling and you remodeled a bathroom, you can deduct the reasonable costs of the tile, new plumbing fixtures, paint, that glue stuff they use to hold done the tiles (hey, I'm a lawyer not a home repair expert). It is VASTLY preferable to keep your receipts (or at least pay with a card). The first reason, is that the IRS doesn't challenge receipts in normal circumstances. The second reason is that you usually don't remember every expense, so you're losing some valid deductions. the third reason is that you'll spend a lot of time attempting to remember all your jobs and expenses last year compared to going through the receipts.... Read More

First, if you filed the returns then any taxes more than 10 years old are written off by the IRS (that's why the TV ads say "we can get a deal where you pay 5% of your back taxes" the IRS has already written off the old years). Second, taxes where you filed the returns more than 3 years ago are discharged in bankruptcy. So, if you filed bankruptcy you'd still have to pay 2012, 2013 and 2014 taxes but not the older ones. You could handle these through in bankruptcy court in a Chapter 13 or directly with the IRS in a Chapter 7. Many bankruptcy attorneys don't have a clue about taxes, go to an attorney who is also a CPA.... Read More

The IRS can estimate your taxes, file a return based on their estimate and start collection activity for the estimated amount (plus interest and penalties). Collection activity includes seizing your bank account, garnishing your wages and, at the extreme, selling your house and taking the proceeds. File your tax returns, even if you can't pay the tax.... Read More

The answer to your question will depend on the terms of the trust.  If you uncle owned the land or the trust provided that he had certain incidents of ownership or control then the basis in the land was stepped up to his date of death value 30 years ago when he passed away.  That alone doesn't help you much due to the huge appreciation in farmland values since that time.  In order for a step up in basis at your great aunt's death she would have needed to have certain ownership or control over the trust.  Ask a professional to review the trust itself.  Then even if it does not qualify for a step up in basis there are still certain ways that you as a beneficiary may be able to avoid the cap gain tax.  Be sure to investigate this BEFORE the closing on the farm.  ... Read More

Generally, there is a3 year statute of limitations for the IRS to audit a tax return and a 10 year statute of limitations for hte IRS to collect tax. However, there are exceptions to these time periods, such as for fraud or failure to file a return. If your last refund was held, you should contact a tax professional to ensure that the IRS does not take further action. You may contact our office to schedule an appointment if you have further questions or if you need assistance with this issue. You can also schedule an appointment or obtain additional information at our website.... Read More

Generally, a tax attorney or other tax professional can assist you with coming to a reasonable agreement with the IRS which will allow you sufficient funds to continue living and to retain your possessions. You may contact our office to schedule an appointment if you have further questions or if you need assistance with this issue. You can also schedule an appointment or obtain additional information at our website.... Read More

The first step would be to contact the IRS and tell them the taxes owed for 2002 are overstated. If you earned income that year, you will have to pay the taxes related to that income so setup a tax payment plan for the whole amount assessed since that will stop collections. Next have an amended tax return prepared that shows the expenses for that year, and file the return. It will take the IRS 8-12 weeks to fully process the return, but you can try faxing to the collections group so that see the "real" tax owed and perhaps even takes that into account for the payment plan before they send the return off for processing. Once the actual taxes owed for 2002 are in the IRS system, the payment plan you setup will pay them off. ... Read More

A petition for a payment plan should be submitted on your behalf. If accepted, you will be allowed to make regular payments on taxes owed. I would urge you to have a qualified and experienced tax attorney review the assessment to determine first and foremost whether the tax is actually due in the amount assessed-the IRS is not always right or fair. Other options are available, depending upon your circumstances and in some cases you can compromise the amount they claim is due. Seek the help of a competent tax lawyer who is experienced.... Read More

Essentially, your damages from an employment discrimination claim are in compensation for lost wages unless you are able to characterize them as compensation for personal injury of some sort. As wages, your earnings are subject to income tax. This question should be directed to your attorney who will know more about the nature of your claim and the characterization of the damages you are seeking.... Read More

Don't toy with this sort of thing; you could get into a lot of trouble. Why don't you take a look at the Tax Crimes Handbook , starting around page 102 under the heading "Aiding and Abetting." Note the words "Whoever willfully causes an act to be done which if directly performed by him or another would be an offense against the United States, is punishable as a principal."... Read More

The rules for claiming a child as a dependent can be complex, especially in a factual situation such as you describe. Generally the dependency exemption will go to the parent who has primary custody of the child for the calendar year. That sounds like the mother and her father, in this case. It would be best to reach an agreement with them, if possible. If you cannot agree with the mother and her father, there are complex tie breaking rules. You should consult with a good CPA.... Read More