ILLMAS

I had a similar case, business client of mine received the call but didn't have records so she told them to call me and gave me permission to provide what ever they needed. Here is the deal, the owners daughter bought a house put down that she worked for her parents business and with the help of the realtor and loan officer they prepared a fraudulent W-2 to qualify her for the loan, well the property went into foreclosure within months and the company was verify information that happened in 2005/06. They build a case to go after mortgage companies.

If I were an IRS auditor I would ask these questions: 1. Was your client paying FMV rent to his mother? 2. Was the building sold to him at FMV? 3. If you were renting from a non-related party would have put 600K of improvements? 4. Who benefits if you sell the building today? Then I would allow 39 years of depreciation Question #3 was asked in a real audit, when Corp made huge capital improvements to a building owned by the same owner. Auditor wanted to move the assets to the personal return and disallow on the corp. return.

What do you get when a person is an attorney and a CPA? http://www.chicagotribune.com/news/local/ct-met-lawyer-billing-complaint-20130626,0,5494819.story

This applies to business people only, student visa don't require for you to demonstrate you have capital in your country.

The best tasting Hostess comes from their outlet stores : )

Marinela has one called Gansito, it's like chocolate cover Twinkie with cream and strawberry filing, also the short bread cinnamon called Canelitas and can't forget barritas de piña.

I lost 100lbs eating them, gain all 100lbs while their absence, I cannot wait for them to be back on the shelf

Okay here is what I suggest, lets say your client had 2 buildings: Building 1 Cost $250,000 A/D ($125,000) Building 2 Cost $100,000 A/D ($55,000) He then sold both buildings for $500,000 and received an initial payment of $300,000 and received the remaining balance in 3 separate payments. This is how I would record, of course deleting the deposit of $300,000. D C Cash $300,000 Building 1 $250,000 Building 2 $100,000 A/D $125,000 A/D $ 55,000 Gain on Sale $330,000 Receivable $200,000 You can name this a due from or note receivable Totals $680,000 $680,000 Then once the other payments come in, you would offset them to receivable. If the contract to sell everything at once, this how your JE should look. Hope this helps.

Has the client finally received the complete sales amount?

You mentioned that 2013 hasn't been reconciled, you can simple void the deposit or delete, your JE will affect cash which will show on your bank rec. Ah and NBV stands for net book value.

"Of course, then you'll have to talk about who is paying them or whatever else is going on." Bingo, we always turn a blind eye for our clients don't we.

Yes a journal entry would work best, here is an example: D C Cash XXX Building XXX A/D Building XXX Gain/Loss on Sale XXX or XXX Income account If the commission was paid at enclosing, I would just reported it separately and reduce it from the gain/loss or if necessary you can create a closing cost account. Where it makes a real difference is on the tax return, for book purposes just reporting the gain/loss is what is important.

True, but remember when you say illegal alien the first that comes to mind is Mexican, but there are also illegal aliens coming from Europe, South America, Middle East, Caribbean and Asia. We normally exclude them because they blend in and don't automatically think they are illegal don't you think?

I agree illegal aliens sounds politically incorrect, just like the word negro. FYI they have the same responsibility of filing taxes like everyone else

I took my iPad to last year IRS tax forum and found it impossible to take notes, it was okay to follow the PowerPoint presentation.

LOL it was a trick question and you figured it out.

"she did not have a copy from the original visit" Agree, they failed to mention anything about what she did with her original copy, I get this all the time, can you send me a copy of my return because I need it for the bank.....

As the subject line says, what do you think is wrong with this article? 2013_06_19_14_00_30.pdf

Ms Tabby, how did go so far?

Just out of curiosity why is the large business and international dealing with this case? They usually don't come out on cases like this.

Once they find out they have to report their "world income", they decide 1040NR is the best option

This might be helpful to you: Exemptions Generally, if you are a nonresident alien engaged in a trade or business in the United States, you can claim only one personal exemption. You may be able to claim an exemption for a spouse and a dependent if you are described in any of the following categories. If you are a resident of Mexico or Canada or a national of the United States, you can also claim a personal exemption for your spouse if your spouse had no gross income for U.S. tax purposes and was not the dependent of another taxpayer. In addition, you can claim exemptions for your dependents who meet certain tests. Residents of Mexico, Canada, or nationals of the United States must use the same rules as U.S. citizens to determine who is a dependent and for which dependents exemptions can be claimed. See Publication 501 for these rules. Pursuant to tax treaties certain residents of South Korea and certain students and business apprentices from India may be able to claim exemptions for their spouse and dependents. Refer to IRS Publication 519 and to Revenue Procedure 93-20 for details.

They can't until they see the finding, not he said she said....

Do you happened to have a copy of the finding? Not a bad idea to share the auditors position as to why the 15K as added, there has to be an explanation. I know once you post it, others can help you. MAS

The only way it will become a problem if the husband and wife were both self-employed, if not the employer always reports to SSA the correct figure, the IRS probably hasn't catch it since the combined wages match.