Illinois Tax Legal Questions

If that is the only gift that they are making this year, then a gift tax will not be due. That qualifies under their annual gift tax exclusion ($13,000 per donor per donee). Note that gift taxes, if required, are paid by the donor, not by the donee. Best regards. Also, a gift is not taxable income.... Read More

It appears from your question that you petitioned IRS for innocent spouse relief and IRS has denied that petition. You have a right to appeal IRS' decision within the time frame allowed by law and regulations. IRS will not assess additional tax against you just because you appealed their denial of your petition for innocent spouse relief. If they propose to increase your tax for whatever other reason, they have to notify you in advance and you have a right to a hearing.... Read More

Call IRS at the number shown in the letter within the time permitted (usually within 30 days from the date of the letter). Explain your financial situation to them over the phone and answer their questions. Your account may be placed in currently uncollectible status. For a long term solution, you can submit an offer in compromise to settle the tax liability for a lesser amount, although I would recommend you get a professional to help you through the process. Also bankruptcy may be a good option if these are income tax liabilities and the tax returns were filed more than three years ago.... Read More

Your tax is based on your income, including investments and gambling income, during the calendar year. The income tax bracket and the capital gains tax is computed anew every year; it does not carry over from previous years. The tax bracket is based on the amount of income during the year, on a graduated scale, although the investment income is a flat rate, depending on whether it is short term or long term capital gain. You should consult with an accountant to have him compute your tax liability.... Read More

You are liable for any income taxes, not your employer. Your employer generally is required to withhold income taxes from your pay, unless you are an independent contractor. The money that is withheld by the employer is sent to IRS which gives you a credit when you file the tax return. But it's your money - not the employer's. If the employer did not withhold the money, he may be liable for some penalties to the IRS, but you still have to file your 1040 tax return, report your income, and pay the taxes due with your own money. The other issues you raise are not clearly understandable. You should see a tax attorney and present all those issues with relevant documentation and explanations.... Read More

If you can, make a payment of the tax now. This will avoid any more interest and penalties if you lose. If you win, IRS will refund the money with interest. If you cannot pay - or don't want to pay - you can wait till the case is resolved, but you will have to pay additional interest and penalties if you lose. Ideally, you should get a tax attorney to help you through this process.... Read More