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)…
I was awarded our home in my divorce two years ago. Then last year the IRS assessed a large back tax debt against my husband and placed a lien on my house. Can they do this?
- David Greene
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I think we might be able fight this. If he had to transfer the house to you by Court Order and the tax wasn’t assessed against him until after the divorce, then the lien does not attach to your house. …
How To Choose A Tax Return Preparer
- David Greene
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I have more than a few clients each year who are audited and when I review their returns I can see where the tax preparer made mistakes because he/she did not understand the application of the rules. The IRS has…
What is Innocent Spouse relief in terms of IRS tax collections?
- David Greene
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In order to ascertain whether you are eligible for Innocent Spouse relief, we must look closely at the years in question. Were the unpaid returns filed as joint returns? You are responsible for taxes owed on any return you sign. …
Mistakes In Tax Return Preparation
- David Greene
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There are ten mistakes that are most often made when preparing a tax return. I’ll list 5 in this blog and 5 in my next one. The first five are: (1) forgetting to report all of your income (even if…