Can the IRS make me adjust my withholding amount on my paycheck?
- David Greene
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Yes, they can but sometimes you should voluntarily make that adjustment yourself. It is a common issue among our clients that they do not have enough taxes withheld from their paycheck. When you work as an employee, you fill out…
Can one file a second Offer in Compromise after the first is rejected?
- David Greene
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Yes, you can certainly file another Offer, especially when there is a change in your circumstances. However, we should look at another possibility first. When an Offer is rejected, you have 30 days from the date of the official rejection…
What can one do to avoid an audit?
- David Greene
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I often get asked this question just after tax season. There is nothing you can do to guarantee that you will never be audited. However, by following three simple rules, you can minimize your chances of being audited and, if…
What has to be filed for the non-custodial parent to claim the child as a dependent?
- David Greene
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This question deals with the same problem the reader had last week, but in a different way. If a taxpayer seeks to claim dependent children after a divorce but is not the custodial parent, he must file Form 8332 with…
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…