Which tax form should I use to prepare my 2018 return, Form 1040, 1040A or 1040EZ?
- February 26th, 2019
- David Greene
- Comments Off on Which tax form should I use to prepare my 2018 return, Form 1040, 1040A or 1040EZ?
In prior years one had to choose one of the above forms based on the amount and kind of income you made, whether or not you itemize deductions, etc. However, pursuant to our new tax law, the IRS now states…
What is an ABLE account?
- February 20th, 2019
- David Greene
- Comments Off on What is an ABLE account?
ABLE is an acronyn for Achieving a Better Life Experience. ABLE accounts, created by IRC Sec. 529A, are availanble to people who become disabled before age 26. Distributions, including earnings, are tax free to designated beneficiaries if used to pay…
Can one designate voluntary payments from the sale of corporate assets to pay the trust fund portion of delinquent taxes?
- February 14th, 2019
- David Greene
- Comments Off on Can one designate voluntary payments from the sale of corporate assets to pay the trust fund portion of delinquent taxes?
Thank you for your question. The answer is, yes you can designate to which taxes the money you pay to the IRS will be applied as long as it is a “voluntary” payment and not one paid due to forced…
Are divorce related attorney fees ever deductible as a business expense?
- February 12th, 2019
- David Greene
- Comments Off on Are divorce related attorney fees ever deductible as a business expense?
Under the current law, legal fees incurred during divorce may be deductible if incurred because the spouse is interfering in the taxpayer’s business or if the issue relates to taxable alimony income. In a recent case, the Tax Court held…
Will the interest paid on a home equity loan be deductible under the new tax law?
- February 8th, 2019
- David Greene
- Comments Off on Will the interest paid on a home equity loan be deductible under the new tax law?
The answer really depends on the purpose for which you used the loan proceeds. The new tax law suspended from 2018 to 2026 the deduction for interest paid on home equity loans, home equity lines of credit and second mortgages. However,…
Can VA disability payments be levied by the IRS?
- January 29th, 2019
- David Greene
- Comments Off on Can VA disability payments be levied by the IRS?
There is a federal statute that generally protects VA disability income from attachment, levy or seizure. However, in a recent federal case from Colorado, the judge ruled that this statute does not apply to levies issued by the IRS so…
Should one retain a professional to represent her in an audit?
- January 16th, 2019
- David Greene
- Comments Off on Should one retain a professional to represent her in an audit?
The answer is definitely “Yes.” The primary thing that needs to be addressed in an audit is to supply the revenue officer with a complete set of documents and information that he requests, but not extraneous information. The professional representative…
Are consumer tax preparation programs right for everyone?
- January 10th, 2019
- David Greene
- Comments Off on Are consumer tax preparation programs right for everyone?
Tax season officially opens January 28, 2019, so this is the time to think about preparing your taxes. The answer to the above question depends on the complexity of your tax situation. If you have only W-2 income and claim…
Can a Family Court Order stop the IRS from collecting delinquent taxes?
- January 8th, 2019
- David Greene
- Comments Off on Can a Family Court Order stop the IRS from collecting delinquent taxes?
Unfortunately, the answer to your question is no. Since the IRS is a federal agency, it is not bound by a state Family Court order. I assume you and he filed joint returns for the years in question. Therefore, you are…
HAPPY NEW YEAR
- December 31st, 2018
- David Greene
- Comments Off on HAPPY NEW YEAR
I hope all of my readers had a very joyous Christmas holiday and I hope you are looking forward to a New Year filled with hope and promise. Of course, the way to make those hopes and resolutions come true…