Home |Robert James Robert James 20+ years of experience in IRS matters 121 Answers, 0 Claps, 920 Views Share × Feeds Questions Answers Guides Getting married and concerned about tax implications due to my back taxes and student loans.Should we file jointly or separately? How can I find an itemized account of past IRS tax refunds? Is student loan forgiveness a possibility?Will my wife's return be withheld if I owe back taxes? It's really hard to say what would be the best scenario without knowing what state they are in and what their income and tax withholding is like. CA I believe has the strictest laws about debts… 1 0 3 Ex-husband claimed our child as a dependent, but she mostly lived with me. My CPA said he needs to fill IRS Form 8332 and amend his return, but he won't. What can I do? Is there any solution other than what my CPA suggested? You are the custodial parent, so you have the right to claim your child as a dependent since she lived with you more than 1/2 of the year. You don't have to wait for your ex to amend; you can mail in… 1 0 1 Need help with 1099 taxes for 2022 in Illinois suburbs. Got 1099s from Amazon Flex, DoorDash, and Roadie. Any online service recommendations? Used Stride app for mileage. Do I need an accountant? IRS free file if you want to figure it out yourself. IRS Free File: Do your Taxes for Free My Free Taxes from United Way is another free option. They have some support help available by phone or email.… 1 0 0 Received a 5071C letter for my 2022 return, but I can't find my 1040 or any record of filing through H&R Block, Turbo Tax, or FreeTaxUSA. How can I locate my 1040 or confirm the filing service I used? Checking your email account is the only thing I can think of at this point. If you used a different software there should be emails when you set up the account. Unless you went to a tax preparer, you… 1 0 2 Didn't file IRS taxes for a decade, lived abroad, and had minimal US income. Can I file now without issues? If you are a US Citizen working abroad you probably still have a filing requirement, even though you may not owe any US income taxes. For example if you are single and made the equivalent of USD $12,950… 1 0 1 I received a notice for missing eBay sales on my 2021 tax return, and it's asking for payment if I agree with the notice. I've already mailed my 1080-X form to amend my return, but it may take time to process. Do I need to pay by the due date, or is it okay to wait for their response? The "due date" on the CP2000 just means if you pay by that date they won't add additional interest and penalties. You don't have to pay, because the tax hasn't officially been assessed, but you might… 1 0 3 I need to file my 2021 federal taxes. Is it possible to file them online, or is the only option paper? Only someone with professional tax software can e-file a 2021 tax return at this point. You can hire a CPA or Enrolled Agent to e-file your 2021 return, or you can wait until next February and go to a… 1 0 2 I was added as an authorized signer on my mother's checking and savings accounts while she was traveling overseas. Can I be held liable for her business taxes or debts, or is there no liability for an authorized signer in the United States? No, being an authorized signer on a checking account doesn't make you liable for any tax debts. 1 0 2 I received a notice about unreported income in 2021, but I'm sure I reported it, especially regarding stock taxes. I'm willing to pay the IRS taxes, but there's an additional $4k in interest and fees. Is there a way to have those charges removed? Can the $10k owed be rolled over into my 2023 taxes? They will not waive interest on the tax, but you may get the penalty abated through "First Time Abatement" or "Reasonable Cause". Then, the interest on the penalty, is also abated. Use a Form 843. You… 1 0 1 I received a CP2000 notice from the IRS, and they instructed me to fill out a Schedule D (1040) and a 8949 for my crypto transactions on Robinhood. What to do? Robinhood give you all the information on the 1099 form. One easy way to do this is to use FreeTaxUSA - make sure you select the correct tax year, which is probably 2021. You can enter a summary of the… 1 0 11 I worked off the books in a bar before I had my green card and didn't fill out a W9 or file a 1099. The bar contacted me about incorrect W9 information after I'd paid my taxes. Should I ignore it, or should I contact the IRS to declare the income? What's the best course of action? The general rule is all income in the US is taxable unless specifically excluded by law. Even when you don't have a work permit you are supposed to report the income on your tax returns. If you amend… 1 0 1 Can someone advise me on how to address unfiled taxes for the past 20 years, particularly the first 10 years when I was self-employed and had limited recordkeeping? The IRS only requires taxpayers to file the last six years (to the extent a filing was required) in order for them to be considered compliant. You most likely need not go back all 20 years and can file… 1 0 1 Is there a way to prevent my sister's estranged father, who hasn't been involved in her life since she was 12, from claiming her and her baby on his IRS taxes this year, potentially leaving her with nothing? He never formally relinquished parental rights, and we're looking for guidance on how to handle this situation. Your sister can try to get an Identity Protection PIN for herself; it will be harder to get one for her child: Get An Identity Protection PIN (IP PIN) Who does your sister and her baby live with? The… 1 0 5 How can I correct the error where my school expenses were placed on the wrong line by Free Tax USA for my 2021 taxes? The IRS is requesting more information (Schedule EIC), and I was told I couldn't send an amendment since it's for the 2021 tax year. What to do? Education expenses are not reported directly on the Form 1040; they go on Form 8863 which is used to calculate education credits. Was there a Form 8863 in the tax return? Form 8863 The non-refundable… 1 0 1 What additional steps or options are available to address a 570 hold on my tax return, which has been in place since May and has not shown any movement or been accompanied by additional codes or notices? You could reach out to your Congressional Representative: Representatives and Senators: Contact Senators and ask for Taxpayer Advocate Service intervention as a constituent referral. Contact Tax Payer… 1 0 4 What does ERS mean with respect to IRS Tax returns? ERS: Error Resolution. Returns that get filed can get flagged by ERS before they’re processed. ERS handles everything from: missing signatures, setting math errors, fraud claims, etc. anything that… 1 0 4 Is it possible and how difficult would it be to file taxes for a friend who hasn't filed since 2015 and often worked under the table? What will be the cost range if we decide to hire someone to handle this, recognizing that costs can vary by state? There's some good information here about getting someone caught up: Unfiled Tax Returns Your friend should try to access their Wage and Income transcripts online. They should be able to get the last ten… 1 0 1 What steps should I take if I didn't file my taxes as a college student due to difficulties obtaining my W2 forms from my previous employers, who are now unresponsive to my attempts to contact them? If you can get your IRS Wage and Income transcript, you can use that to file your tax return. The version you can get online will be partially redacted, but has enough information to prepare a federal… 1 0 1 Is the 2645c letter I received from a UT address regarding tax year 2021 a potential glitch or a scam since I never inquired about anything and my tax return for that year was filed and paid on time with no issues? Try checking your 2021 Account transcript online to see if there are any recent transactions: Get IRS Transcript If you don't see anything new after your payment, I think it's likely that this is a glitch.… 1 0 4 Will the IRS deduct the balance amount owed due to a fraudulent return in 2022 from our 2023 tax refund, even though the case is still pending and we have not yet received a resolution for the fraudulent return issue we reported back in 2022? Yeah, unfortunately I think as long as any balance due shows up in your spouse's account the refund will automatically be taken. Hopefully it will be resolved before you file for 2023, but if not you… 1 0 1 Has anyone else experienced a situation where they received a letter from the IRS stating that an error on their tax return was corrected, and they were due a refund, but the refund has not been received within the 4 to 6-week timeframe mentioned in the letter? What steps should my nephew take at this point to resolve the issue? Because the notice that goes out after IRS makes a correction is automated, and doesn't "know" whether there is still a hold on the refund. There could still be a hold by a different department. If your… 1 0 2 What tax implications should we anticipate when selling a house that was owned by a deceased individual, particularly in terms of the potential capital gains tax, given that the house's value has increased since its purchase in 2011, even though the owner didn't file IRS federal returns in recent years? Firstly if there’s no living trust then you have to wait for probate that means there could be more debtors than you think so start fixing it up now and do whatever you can to improve the value… 1 0 1 How long does it typically take for the IRS to refund FICA taxes wrongfully withheld from an F-1 visa holder, and at what point should I consider pursuing legal action against the IRS if the issue is not resolved? The problem is that a lot of employers don't proactively verify whether you are subject to FICA withholding or not, especially if you didn't indicate you are a Nonresident alien on your W-4 form when… 1 0 7 Does receiving IRS Letter 96C, which states "we reviewed the information you provided and determined no action is necessary on your account," mean that I won't receive any more refund after filing an amended return in April? Are you able to access your Account transcript? Get IRS Transcript You should see two transactions when the amended return was received: a 971 and 977. Are there any transactions after those two? 1 0 48 What should I do with the CP2501 I received in the mail today after experiencing losses during the 2021 crypto Robinhood frenzy? This actually is pretty easy to fix if you only traded crypto through Robinhood. You can do it yourself, or find a tax professional with experience responding to CP2000 / CP2501 notices. Important thing… 1 0 1 What should I do if I can't pay my $2000 tax debt to IRS by the November 1st deadline, especially considering I initially owed $3000 and was only able to pay $1000? I attempted to revise my payment plan online, but it only offers an option to pay everything at once. What's the best course of action to avoid falling behind on my tax payments? You can get a regular installment plan if you can afford $55 a month or so, but you'll probably need to call. Or wait until after Nov 1st and try to set it up online again. Or you can see if you qualify… 1 0 1 Are there any honest, reliable companies who do tax relief? Tax debt settlement is a real thing, IF YOU QUALIFY. You could do it yourself, but if you struggle with understanding tax or law, you may be better off leaving it to a pro. IMO, use a local credentialed… 1 0 1 I got IRS 810 frozen code. What does it mean? The 810 code indicates that something on your tax return looks suspicious to the fraud detection algorithm. Your return will eventually be reviewed by a human employee; I have no idea what the current… 1 0 68 What should I do about the conflicting information regarding my Earned Income Credit (EIC) eligibility? I received a check for the EIC amount and a letter stating I was eligible after a long process, but now I've received a new letter stating I do not qualify. Should I be concerned about this letter, and what steps should I take to resolve the issue with the IRS? Can you check your Account transcript online for 2021? Get IRS Transcript The last three transaction codes you see should be 768 EIC, 846 Refund Issued, and 776 Interest credited to your account. If you… 1 0 0 I'm in a tough financial situation with an IRS debt of around $2000 due in October, and I'm living paycheck to paycheck with existing college debt. The IRS help programs have certain criteria I don't meet. What are my options for handling this debt without putting it all on my credit card, considering I want to avoid payday loans? If you signed up for the six-month Short-term or Full pay option, you can get a Long-term installment agreement online. You can try to apply now, or after the six months is up. You might also qualify… 1 0 2 Can I use Tax return transcripts from IRS as my W2-forms for application of my Tax refund? Yes, but without the full EIN of the W-2 you cannot e-file the return. If you are using tax software you can make up numbers for the EIN but you'll have to print and mail in the tax return - if you do,… 1 0 5 Who can my friend consult for help with complicated tax questions due to missing records? How can they address this with limited funds? For this they can go to a CPA or Enrolled Agent; they don't need a tax attorney. Here are a few directories to check: Directory of Federal Tax Return Preparers with Credentials and Select Qualifications… 1 0 1 Could the newly initiated student loan repayment plan potentially result in the offsetting of my tax refunds for 2023, even though my income is close to the poverty line, and I may qualify for the Earned Income Tax Credit (EIC)? If your student loans are in default, yes they will take your refunds. The best thing you can do is try to get your refund as close to zero as possible. I know that's not usually an option for people… 1 0 1 I got CP 2000 notice from the IRS saying that I owe 10k from 2021.Is it possible that the information on my IRS.gov account, which shows I owe $0 as of yesterday, could be a scam? Should I contact the IRS directly to confirm this? This is the IRS notice for unreported income. Look inside - it should tell you what type of income (W-2, 1099-B, 1099-NEC, etc) and who reported it, although the name will be partially redacted. The notice… 1 0 5 How can I obtain the necessary tax information for my father's estate in Virginia, given that I submitted a 4506-T Form six months ago but haven't received a response? Probate is nearing completion, and I need to address the estate's tax obligations. For IRS you need to file Form 56 before you can get information on your father's tax status. About Form 56, Notice Concerning Fiduciary Relationship You should also check out Publication 559 for more… 1 0 0 What affordable online services can I use to file my past two years' tax returns as an NJ resident in the military stationed overseas, considering I have all my W2s digitally on hand? Alternatively, should I consider contacting a CPA or tax service from my state, despite potential costs due to long-distance communication, as I need to file these returns for FAFSA? You can still claim a refund for 2020 - 2022; the 2020 return has to be filed by May 15, 2024 in order to get the federal refund. I don't know what the cut-off for NJ is. I would recommend you try contacting… 1 0 0 How long does it typically take to receive tax transcripts after filing for the tax years 2021 and 2022? I've already set up a payment plan, but I need to determine the total amount owed, including any interest or penalties. My returns were electronically accepted last week. Can I print copies of the returns, bring a signed POA, and visit a local IRS office to address these matters? Going to the local office isn't going to help - you need to wait for the returns to process. It usually takes a minimum of three weeks for balance due returns that were e-filed. You might be able to find… 1 0 1 What should I do if my Missouri state tax return was returned to me due to insufficient postage and it's now September? Am I in trouble with the IRS, and how can I rectify this situation? IRS doesn't care about your state income tax return. You should be able to take your envelope to the post office and pay the extra 87¢ and mail it again. I hope you didn't mail your federal and state… 1 0 1 I entered my crpto and stock information incorrectly on my 2021 taxes and recently received a letter for the IRS stating that I need to send them the correct 1099 along with an attached 8949 and schedule D form? Is there something online where I can just drag my 1099 so it’ll auto populate onto a 8949 form? I think Coinledger will do this. I've never used it though. If you traded on Robinhood they issue separate 1099s for stock and crypto. 1 0 0 What happens if the IRS notices errors on my tax returns for 2020, 2021, and 2022 before my mailed amendments are processed, considering I've already e-filed an amendment for 2022? IRS wouldn't know if these are errors or not until they audited you. If you get a notice that your return has been selected for audit or examination, you can let them know you recently filed an amended… 1 0 1 How can I file an amended IRS return for 2020 to claim the Recovery Rebate Credit, and do I need to enter all the information from my original 2020 return or just file for the credit? Yes you need the information from the original tax return in order to amend. You can access the transcripts online; the Account transcript would be the first place to check, then the Return transcript.… 1 0 3 If my self-employed income is $12,000 or less, am I exempt from paying income tax to IRS on top of the 15% self-employment tax? When you are self-employed nobody is collecting taxes for you. You are supposed to make estimated tax payments instead, which should be done on a quarterly basis to avoid any underpayment penalties. Form… 1 0 2 Has anyone else received an IRS audit notice for the Residential Clean Energy Credit when they didn't use any qualifying clean energy systems? Possibly someone filed a bogus return for an energy credit refund using your SS#. You may want to go to the IRS website and get a transcript of you return. Or.....it could be a scam. 1 0 2 How should I address an accidental over-contribution to my retirement account (457 non-governmental) when my income fluctuates, and what steps should I take to avoid penalties? The additional taxes are pretty steep for an over contribution to a retirement account, so contact the financial institution and explain what happened. It's better to withdraw the excess contribution… 1 0 3 What does "your return processing has been delayed beyond the normal timeframe" in the IRS website means? This might happen because you claimed a questionable credit when you filed your tax return, and it’s going to take them a long time to decide whether to examine you, and if they decide to examine… 1 0 5 Does the custodial parent have a legal obligation to offer the non-custodial parent the opportunity to claim the child on their IRS taxes, especially if the custodial parent hasn't filed taxes in six years and wants to allow the child's grandmother to claim the dependent instead? Do the parents typically have the primary right to claim the child over other relatives, aside from the custodial parent? There's no IRS rule that says the custodial parent has to release the claim to the non-custodial parent if the custodial parent doesn't file tax returns. However the custodial parent cannot allow anyone… 1 0 6 Is it advisable for my 68-year-old retired mother in Virginia, who only has Social Security as income, to take up gig work for additional earnings while staying below the income threshold to minimize taxes? Should we consider filing IRS taxes quarterly, and does Social Security count towards this threshold? People who do gig work have to calculate at least two taxes: Self-employment tax, which is their contribution to Social Security and Medicare, and income taxes. There is no standard deduction for SE tax… 1 0 1 Is there any general advice for filing three years' worth of IRS taxes, especially if I anticipate getting a decent refund and don't expect to owe anything? Should I consider hiring a tax attorney, using a tax preparation service like H&R Block, or are there other recommended options for this situation? You may qualify for free filing through Get Your Refund: GetYourRefund They can still e-file 2020 - 2022 returns this year as long as you qualify and get started before Oct 1. Or you can wait until next… 1 0 0 Has anyone had experience with filing an amended return via fileyourtaxes.com that includes an additional amount due, and if so, did the platform process the payment to the IRS directly? I'm confused because the filing status indicates the return was accepted, yet the IRS website suggests sending hard copies of amendments by mail and waiting for manual processing. Should I be concerned about the payment method and timing? You can select Electronic Funds Withdrawal (EFW) when you file a tax return; you would have had to select a date for the EFW and enter your account information near the end of the filing process.… 1 0 2 Has anyone experienced a situation where an employer initially provided an incomplete W-2, later issued a corrected one (W-2C), triggering an IRS tax examination (CP05A)? Despite submitting documents for verification, the IRS couldn't confirm, resulting in owing $800 instead of a $2,300 refund. What steps should I take to resolve this? If you are able, pay the $800. That way you stop any penalties & interest if you lose. If you win, they'll pay it back to you with interest. I would ask the employer to verify the submission. 1 0 6 No questions added by Robert James. Anyone knows how long refund would take after seeing the message "We cannot provide any informaion about your refund". I was asked to read a topic 152. Tax Topic 152 is a reference code that taxpayers see if their return is under review and could take a bit longer to be processed. It does not indicate a significant issue or error with the tax return… 1 0 1 How to talk to a human at the IRS ? Follow the below steps to speak to a real person at IRS. The IRS telephone number is 1-800-829-1040. The automated system's first question is to choose your language. Once you've set your language,… 1 0 12 Is ID.me the only way to log into my account IRS.gov? That is the only way to access your online account as of now. Follow these directions exactly and you'll get in. If you have moved or changed your name in the last year use the old name and address. If… 1 0 8 Is there any other way to contact IRS besides phone call? Call the IRS Innocent Spouse toll-free line: 1-855-851-2009 M - F 7:30am - 3:30pm ET Inquiries / Claims you can also schedule an appointment at your local IRS office - 844 545-5640 1 0 4 I got an accountant instead of doing taxes myself back in 2021. Never got my federal taxes, just state. Is there any way to reclaim them? First, find out what is going on. Pull your account transcript. That will tell you if they received it, processed it, etc. From there you can get a clearer picture of what you need to do. If you see an… 1 0 1 No Guides added by Robert James.
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