Is an ex-spouse only responsible for one half the taxes on a return with delinquent taxes?
- David Greene
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I have been asked this question before. The general answer is that a spouse owes all of the taxes because he signed the return. For a joint return the signers are jointly and severally liable for the tax. This means…
How can the IRS deny a taxpayer’s exemption for his child?
- David Greene
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Usually, when the IRS denies your exemption for a child, it means that someone else filed before you did, claiming the same child as an exemption. This usually arises when a stepparent and biological parent both claim the exemption. However, in…
What are Estimated Taxes and do I have to pay them?
- David Greene
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Estimated taxes are taxes one has to pay in advance of the tax being due. They are required for people who earn income from which no payroll taxes are withheld. A “W-2” employee is one who gets a regular payroll…
How is real property owned by a deceased person transferred if no probate estate was ever opened?
- David Greene
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The only way to transfer real property owned by a deceased person who died less than ten years ago is to open or reopen a probate estate and obtain a Deed of Distribution. If the deceased died more than ten…
Are there any exceptions to the rule that canceled debt is counted as income?
- David Greene
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When a taxpayer is unable to pay all of a debt and the creditor cancels the unpaid part, the amount of the canceled debt is generally treated as income to the taxpayer under federal tax law. The creditor reports this…
Is a Personal Representative responsible for estate tax debts?
- David Greene
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Before I answer this question, I want to remind everyone that spammers are sending out emails saying they are the IRS and asking for your Social Security number. The IRS never communicates with taxpayers by email. Throw these emails in…
Do I need to report the sale of stock on my tax return?
- David Greene
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The short and simple answer is yes. When you purchase stock or any type of security, you are doing so with the money you have earned after taxes. This type of investment creates a basis in the new asset you have acquired….
Does using a paid tax preparer guarantee a correct return?
- David Greene
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Unfortunately, the answer is “no.” Many preparers make mistakes from time to time for various reasons on both personal and corporate returns. In fact, the IRS recently released a study that found that 71% of S corporations who used paid…
Is a spouse responsible for the partner’s pre-marital tax debt?
- David Greene
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If one is single when the unpaid tax liability accrued, only the one who incurred the tax debt is responsible for paying those taxes. The IRS cannot take the other spouse’s property or levy her income to pay those taxes. …
Mistakes In Tax Return Preparation (Part 2)
- David Greene
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Recently I stated that I can think of ten mistakes that are most often made when preparing a tax return. In that blog I listed 5 and in this blog I will tell you the remainder. Here they are: (6)…