Max W

If there is no deficiency, Taxpayer can sue for refund - 28 USC § 1346 - District courts, concurrent with the U.S. Court of Federal Claims, have original jurisdiction over the following actions commenced against the United States: tax refund suits;

Before Edsel's latest comments I had thought of TAS, as well as some other measures, but seeing the absolute complicated mess that is involved, I would have little faith in having the TAS resolve it. I had a case in which involved an amended return and it took the TAS 18 months to resolve it. I would strongly lean on going directly to tax court. It will take its time, too, what with getting a date for the court and, then, if appeals doesn't resolve it , waiting for the court's decision. The client can represent them-self at tax court, but at least consulting with a good tax attorney would be worthwhile, as there could be legal issues involved here in the way the IRS acted.

The APTC is not exempt from collection activity. I have one client that went to HRB in 2016 and it was not reported correctly, resulting in having to repay $15K plus penalties and interest. They had taken some money out of a retirement account and it pushed them about $3K over the 400% poverty line. There have already been some court cases and the finding was that congress did not provide any relief for this. IRS collection notices for the ISRP use the same code numbers (CP 503, CP523, etc) as regular collections letters, but with a capital H - CP503H, CP523H.

We are all shooting in the dark here. Most people are not conversant in legal terminology and often get it wrong. What did the client mean that the government closed its case? If it refers to the case linked below, which could be the case referred to, they probably meant that the government closed its argument and the case went to jury. The jury handed down its verdict and then the defendants filed an appeal. When a defendant loses, there is almost always an appeal. It is a CYA move for the attorneys. A federal appeal moves fairly quickly, but could take from 6 months to a year. There are elements of a Ponzi scheme here as individual account statements were issued showing falsified earnings. https://www.justice.gov/usao-ndil/pr/chicago-investment-manager-convicted-federal-fraud-charges-swindling-10-million-clients

A decision was rendered on the case prior to it being closed. Once the decision came down, a period of 60 days is allowed for an appeal. If it did go to appeals, it could take a year. I doubt there was an appeal, otherwise the case would still be open. My guess is that the verdict was rendered in late 2018. You should be able to look up the case and get confirmation of the date.

Howell looks like a good choice. What is their yearly renewal fee? Do you also know if the can convert from QB?

PPL might be able to resolve it immediately, if the year is improperly flagged, assuming the CSED date has passed. If not, then a call to collections will have to be made. A tip: If a levy release is required, do not let the IRS mail it out. Provide them with the fax number of the payroll dep't. and tell them it is necessary to fax it because payroll cut off is in 2 working days and the levy is causing extreme hardship.

That is an approximation. Unless the client is in an installment agreement, IRS levies the entire paycheck, but exempts a certainamount according to filing status and number of dependents claimed.xample, a single person with no dependents would be left with $234.62 a week. https://www.irs.gov/pub/irs-pdf/p1494.pdf

This has to be done by phone and immediately. The client is having 85% of his paycheck garnished each time. Responding to IRS letters takes 90 days to get a reply.. When I get a case like this, I call and get a 60 day full pay hold. That lifts the levy immediately and gives you time to resolve the issue.

First, you have to find out what is going on here, as 2007 should have passed the statue date (CSED)10 years and a day from the last assessment and any liens should have been removed within 30 days after that. The first step is to call the Practitioner Priority Line (PPL) ( you will need form 2848, or, if you are not an EA or CPA, form 8821.) Then call PPL and tell them what your client is experiencing. It is possible the 2007 account was improperly flagged to expire. PPL can usually fix those things. I just had something similar happen with one of my clients. Four years were wrongly flagged to have form 940 filed. PPL fixed that. PPL can also tell you whether the appropriate collection letters were sent to your client. You should also ask them to fax you the Account Transcript for 2007. It may take time for the flag removal to work its way through the system, so I would prepare form 433F and call ACS. The form is a Collections Statement. An installment Arrangement can be set up depending on what the disposable income is. Or, it could be Non-Collectiable again( CNC). You need to be an EA, or CPA to do this. If the appropriate collection letters were not sent out, (CP503, CP 504 and LT11 - Final Notice) you can file a CDP (Collection Due Process) request, form 12153. However, the main reason taxpayers do not receive IRS letter is that they have moved and have failed to file form 8822, change of address. If all else fails, the last resort is the Taxpayer Advocate Service, but when you call them you must tell them that the matter is URGENT and they will respond in 48 hours, otherwise it will be several weeks.

Or, it can be cashed at any bank. If it is a postal money order, at any US post office.

The B trust can serve other purposes than that of a by-pass trust. Ir can protect the decedents assets, especially where the heirs of each spouse are different, such as in the case of remarriages. It is also tax advantaged, as each trust could be subject to a lower tax. To be a by-pass trust, it has to have distributable income, which can be distributed to anyone the trust designates. If there are no income producing assets, such as non-rental R.E. it is not a by-pass trust.

If the B trust only holds non-income producing assets, such as a home, it has nothing to distribute until A dies and then the home is sold. If it has income producing assets, they can be distributed to the survivor , or children, or whoever the trust designates. Then it would be a by-pass trust. It is all determined by the terms of the trust. The main purpose of a B trust is to protect the assets of the decedent, so they can be passed on to his/her heirs. A common situation is where a divorced, or widowed person with heirs remarries.. It also protects the deceased assets in the event the surviving spouse remarries. Another aspect of the A-B trust is that could reduce the estate tax.

The B trust is only a bypass trust if the terms of the trust designated as such.. This one has not. But, anyhow, you finally got to the answer I was seeking. Thank you.

It is not a by-pass trust. Those are used to provide support to the children of the marriage. The B trust comes into being on the death of the first spouse. The survivors trust is the A trust. It is obvious the A trust is elegible for the 645, but is the B trust also eligible, even if the the spouse died several years ago. There was no activity in her trust and the only thing that trust will receive is half the proceeds of the house.

I know I can make it for the A trust, because he died last year. What I'm not sure about is the B trust, because that wen into effect about 4 years ago. I would like to make the election for both to avoid two returns for each. As for the accounting, there are only going to be two things, IRD and a house that is being sold.

When spouse B died in 2015, thatt oart of the trust becam irrevocable. Can a 645 election still be made for that? TIA

The payment is due the first year on the 15th day of the 4th month after the LLC is filed. So, that would be June 15. After that, it is on Apr 15, each year. If it is late, the only penalty is interest accrued after the due date.

As long as the last 4 digits of the SSN (and the first 4 letters of the last name) are correct, you should be able to Efile. If these do not match the IRS/SS records it will be rejected. Then you can paper file.

Cliemt dies in Sep of 2018. Is the 645 election due by Apr 15? TIA

Wage & Income transcripts are not available until the end of May and the issuer, being a lawyer probably wouldn't have reported it to the IRS, anyway.

You can take 100% bonus depreciation on the rental share of the appliances.

Only titled assets go can go into a trust. It is called funding the trust. For instance, if a home is not titled in the name of the trust, it is not part of the trust, . However, It is still part of the estate and a trust can make election to be treated as an estate. All trusts will say that all non-trust assets are to be distributed by a will. These are called pour-over wills and are included in the trust papers.

I just did a rental that converted to Sch C. The owner decided to become an AirBnB host AND serve breakfasts. It was a little nasty allocating the depreciation and expenses as the owner rents the house and lives in a detached cottage. When it was Sch E, the software took care of that.