Michigan Tax Legal Questions

Because you're married and don't have a legal separation, if you file a tax return, the status would be "married, filing separately". However, payments between spouses are not considered income for tax purposes. If you file a return, it would show zero income. In Ohio, you aren't considered to have earned half his income (Ohio isn't a community property state). If he filed joint returns for previous years and signed your name without your knowledge and permission, you need to file Form 14039 Identity Theft Affidavit. You have no tax liability for years in which you have no income and didn't sign (or consent to) your spouse's filing a joint return. However when the IRS got the joint return from your husband, they assume that you also signed it. You need to inform them of the facts.... Read More

I would certainly suggest that you counsel with an attorney regarding your plans. Generally if you have a separate LLC it will have a separate federal EIN. It is also possible that the original LLC could on the second LLC. Fully explaining your plans, and the reasons for the segregation of the two services, would assist you in determining the best manner in which to accomplish your goals.... Read More

Probably yes. But note that probably his income and tax liability is community property. Still it is probably beneficial. Plus, if it turns out that you could save money by filing a joint return, you can always switch up until April 15, 2017, for 2013 income tax returns, i.e., 3 years after the due date. So file separate now, and switch later if it will save money and his separate taxes have been paid.... Read More

Did your mother leave a will? Does she have an estate (that is did she leave any assets where there was no beneficiary designated such as bank accounts automobiles investment accounts and the like). If she did leave a will and you are the personal representative you can file her final tax return but remember that when you file that return as her personal representative you are personally liable for the taxes that she owes.you need to check and see what types of legal documents if any she left for you file her returns. Did she leave a will is a mentioned before or was there a trust, or had somebody been designated as her agent under a power of attorney. While that power of attorney expires on the time of her death the person designated as her agent may have information regarding her assets and what she wanted done with her final taxes etc.... Read More

First of all, with regard to this "settlement" that you may receive from an accident case, I'm not sure why the IRS would enter into the picture prior to a time when you file a tax return reporting whatever might be taxable from the settlement. If this settlement from an accident is for personal injuries, those amounts are normally not considered income for the purpose of the income tax. I have a feeling, however, that you haven't explained the entire situation. Unless the proceeds are coming from the government I'm not sure how the IRS would be able to retain whatever those amounts were. If you do owe back taxes I suppose the easiest thing to do would be to pay those taxes when you receive the settlement proceeds.... Read More

Refer to the IRS website. See information pasted below. IN summary, you must obtain a ITIN (Form W-7) if you cannot obtain a social security number. You can hire employees. Taxpayer Identification Numbers (TIN) A Taxpayer Identification Number (TIN) is an identification number used by the Internal Revenue Service (IRS) in the administration of tax laws. It is issued either by the Social Security Administration (SSA) or by the IRS. A Social Security number (SSN) is issued by the SSA whereas all other TINs are issued by the IRS. Taxpayer Identification Numbers ?Social Security Number "SSN" ?Employer Identification Number "EIN" ?Individual Taxpayer Identification Number "ITIN" ?Taxpayer Identification Number for Pending U.S. Adoptions "ATIN" ?Preparer Taxpayer Identification Number "PTIN" Note: The temporary IRS Numbers previously assigned are no longer valid. Do I Need One? A TIN must be furnished on returns, statements, and other tax related documents. For example a number must be furnished: When filing your tax returns - A change in IRC section 6109 regulations in 1996 mandates the use of a TIN on tax returns. When claiming treaty benefits - There was a change in the IRC section 1441 regulations in 2001 which mandates the use of a TIN in order to claim tax treaty benefits. A TIN must be on a withholding certificate if the beneficial owner is claiming any of the following: ?Tax treaty benefits (other than for income from marketable securities) ?Exemption for effectively connected income ?Exemption for certain annuities When Claiming Exemptions for Dependent or Spouse: You generally must list on your individual income tax return the social security number (SSN) of any person for whom you claim an exemption. If your dependent or spouse does not have and is not eligible to get an SSN, you must list the ITIN instead of an SSN. You do not need an SSN or ITIN for a child who was born and died in the same tax year. Instead of an SSN or ITIN, attach a copy of the child's birth certificate and write Died on the appropriate exemption line of your tax return. How Do I Get A TIN? SSN You will need to complete Form SS-5, Application for a Social Security Card (PDF). You also must submit evidence of your identity, age, and U.S. citizenship or lawful alien status. For more information please see the Social Security web site. Form SS-5 is also available by calling 1-800-772-1213 or visiting your local Social Security office. These services are free. EIN An Employer Identification Number (EIN) is also known as a federal tax identification number, and is used to identify a business entity. It is also used by estates and trusts which have income which is required to be reported on Form 1041, U.S. Income Tax Return for Estates and Trusts (PDF). Refer to Employer ID Numbers for more information. The following form is available only to employers located in Puerto Rico, Solicitud de N?mero de Identificaci?n Patronal (EIN) SS-4PR (PDF). ITIN An ITIN, or Individual Taxpayer Identification Number, is a tax processing number only available for certain nonresident and resident aliens, their spouses, and dependents who cannot get a Social Security Number (SSN). It is a 9-digit number, beginning with the number "9", formatted like an SSN (NNN-NN-NNNN). To obtain an ITIN, you must complete IRS Form W-7, IRS Application for Individual Taxpayer Identification Number (PDF) . The Form W-7 requires documentation substantiating foreign/alien status and true identity for each individual. You may either mail the documentation, along with the Form W-7, to the address shown in the Form W-7 Instructions, present it at IRS walk-in offices, or process your application through an Acceptance Agent authorized by the IRS. Form W-7(SP), Solicitud de N?mero de Identificaci?n Personal del Contribuyente del Servicio de Impuestos Internos (PDF) is available for use by Spanish speakers. Acceptance Agents are entities (colleges, financial instituti... Read More

You cannot claim your girlfriend. You might be able to claim her children if you provide over half of their support (food, lodging, medical care, clothing). If you do claim them there is the possibility that the IRS might want proof of what you have spent so keep good records of these things.... Read More

Well, this is a community property state, so technically, half of your husband's income is yours and thus could be reachable by the IRS. This is why they are asking for that information. If you are already in an offer process, you must provide the information the IRS requested and see where it takes you. If the offer is denied, after all, there could be a way to successfully appeal that denial, but again, the husband's income is an issue (since half of it is yours in Washington state). Thus, an installment agreement could be the only viable option, and no, you cannot stop the interest and penalties. The only good news (relatively good) is that the IRS has 10 years to collect from you (from the date of assessment). So after the 10-year period expires, your payments will stop even if you do not pay off the entire balance.... Read More