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CPA - US
2 years ago
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2

I made a mistake when filling out my Premium Tax Credit Form (8962) and I received Notice CP11a with a huge amount to repay with only two weeks until it is due. My question is if the IRS would allow an extension to the notice even though the amount is correct according to the error that I caused?

I've got one week left and two CPAs that I am familiar with are out on vacation. Some people are telling me that it is possible to get a 60 day hold. Is this true?

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4

Here’s the rundown of my situation. I’m operating an online WordPress website that sells social media consulting services over the internet.

Besides services we offer subscription based products such as online courses and exclusive online networking groups for a fee. We also sell people graphic design templates for their social media accounts on our online shop as products.

It’s owned and operated by me and I operate the business out of my laptop and do not own any brick and mortar business facility as I host the website through GoDaddy and not on my own physical servers.

I currently reside in Connecticut and I’m curious if I am expected to charges my online customers CT sales tax on digital goods or services at the 1% digital goods sales tax rate. None of the services or digital downloadable goods I sell are physical or shipped to a customer everything is digitally produced.

My other question which is important is if I am supposed to charge sales tax to customers outside of Connecticut and am required to file sales tax permits for any sales produced by customers that don’t live in my state? As I can see this becoming a tax nightmare if I am expected to file sales tax for every digital sale made from a customer living outside of CT.

Any advice or information on this would be a big help to me as I have been struggling to find good information on CT sales tax that accommodates the online business owner regarding digital goods and services for out of state sales

2

I have a start up corporation and its a lot slower revenue wise than i expected for my line of business. Currently, all i have to show is expenses thus operating loss.

My question is if im the sole employee, do i have to pay estimated payroll taxes etc? Also, im not paying myself anything and if i had too then its going to be $1 salary if thats even allowed.

I expect business to pick up as i gather clients fyi.

3

I was told not to work as a food delivery driver by my aunt, however, I did it anyways and I have to pay taxes. My aunt usually handles all of that (19) so I want to start doing it on my own so I know what to expect in the future. My question is do my taxes get mailed to my house or can I request to have it emailed or do it online.

Thanks a lot

James

6

I hoping I could get some help and answers from anyone regarding a situation that I’m going through at the moment. I have been on-site manager for a 16 unit building in LA. I just received a letter from the IRS that I owe $2,650 for 2016 because i didn’t claim a 1099 form from the owner of the building. He is stating I’m a independent contractor. I pay the owner the full amount of rent $1,369.51 and i get a check In return from the owner of $819.51 making my rent $550 the amount we agreed on. But since 2016 he has been using the check he gives me back to claim on the 1099 form. I spoke to the irs and they told me I will also have to pay for 2017 and 2018 if they keep claiming that money. Is it legal for him to claim the money that is being reduced from my rent for the services i do in his building? I wanted to know if that’s even legal for them to do? Is he allowed to report me as a independent contractor? I now have to pay taxes like i have my own business or if I work for myself and that is not true. I will appreciate any type of help or advice you can give me.

Thank you.

3

Good morning,

I'm single. I have a part time job which I make around 30k/year.

Recently, I traded options and made roughly 20k. (flagged me as a day trader)

My question is since I got flagged as a day trader, will my tax bracket go higher for this year to 50k? (30k + 20k = 50k)

or will the tax bracket stays the same (30k) and just get taxed on 20k I made from day trade?

Thank you very much!

2

Is it as easy as writting a check to your personal bank account? Or is it a little more involved than that?

1

Overview: Single Member LLC (Disregarded Entity) - Uses QuickBooks Self-Employed. Uses Square to pay 1099 Contractors, they file and send a 1099-Misc yearly. It all gets tagged in QB (contractor labor). Company paying the contractor is required to provide their EIN if it's an LLC. This is what gets sent to Contractor, 1099-misc, with the LLCs EIN.

Since this is a disregarded LLC, flows to owner's personal return, quarterly taxes paid by owner, using their Social Security #, how does the contractor labor, that's though the firm's EIN, match up with the owner of LLC's SS# as an expense?

Not sure if this makes sense or if the owner is over-thinking it... Thank you for any help.

1

Would like an opinion on completing a W9 for friend's business. Their CPA is on vacation.

Holding / Parent Company (lets call it A, LLC) S Corp.

Subsidiary Company (let's call it B, LLC)

A, LLC owns 100% of B, LLC. Companies file a consolidated tax return. B, LLC is single member disregarded LLC.

When completing a W9 for B, LLC. Need help filing in Line A, B, and C. Checks are paid from Vendor to B, LLC.

My guess:

Line A: A, LLC

Line B: B, LLC

Line C: Limited Liability Company, S Corporation.

Part 1: EIN for A, LLC NOT B, LLC

Thoughts?

10

I work at a car dealership and make close to minimum wage working 40 hours but I get monthly bonuses depending on how many people I can sell. Is it true bonuses are taxed at 20% or is it a higher number?

1

I live and work in NYC, plan on purchasing a very expensive item online (many thousands of dollars), and would like to limit my sales/use tax liability as much as possible. For the purposes of this post let’s just say I plan on purchasing a special t-shirt for $15k. I want to be smart about the way in which I execute my purchase so I end up owing as little in taxes as possible. I’m not looking to do anything illegal.

If I order this t-shirt online (from a retailer with a physical presence in NYC) and have it shipped to a non-primary residence in another state where this retailer does not have a physical presence (so that the online retailer will not collect sales tax at the time of sale) how would my tax liability be determined? Would I owe sales tax to the state where the t-shirt is delivered? Since I’m a resident of NYC, would I nonetheless still owe use tax to NY despite the fact this item was purchased online and sent to an out-of-state address? When the retailer files their taxes with NY, will they report this sale to NY so that NY will come after me for sales/use tax? If they did, could I show proof that I paid sales tax in the state where the item was mailed in lieu of making a payment to NY?

My guess is that I’d owe sales tax to the state where the package is delivered and if that tax rate is less than NY’s sales/use tax rate I would owe the difference to NY. (I believe the above would also apply to NY residents who travel to NJ to buy clothing where there is no sales tax on clothing, even though in practice I doubt anyone reports and pays a use tax to NY on such purchases). Lastly, do states in the tri-state area have use tax notice and reporting laws (like Colorado’s) such that these states will have knowledge of my purchase and contact me so I know where to remit payment and the amount owed? If not, is reporting this purchase and paying sales/use tax solely reliant on voluntary compliance?

Any thoughts/ideas would be greatly appreciated!

3

I'm 26, Unemployed and currently on Medicaid ,I live with my Dad and he pays for most things, can he still claim me as his dependent?

1

Howdy all. What's a good alternative to paying the owner that is not a wire transfer or check? The business account and personal account are at two different banks.

Overview: Single Member LLC / Disregarded entity. Side consulting business, low yearly income from this business. A packet of checks are $50 bucks and the owner doesn't need so many when they get paid only a few times a year.

1

For context, I have 1 allowance on my federal W-4. I have to fill out the NJ-W4 (nonresident) and NYS IT-2014 (resident), but I can't figure out how NJ and NYS want me to calculate withholdings. Can I put a 0 on both state forms?

Thank you!

8

I rent out rooms in my house and, because my two tenants have proven incapable of doing so, I want to hire a cleaning service to maintain their shared bathroom and some other common areas in the home. While the IRS site indicates that cleaning services are deductible, all references to cleaning services as a tax deduction that I've seen refer to cleanings the landlord conducts after tenants move out, and not to regular cleanings by a housekeeper.

Would such cleanings be tax deductible? In addition, would charging my tenants in part for the service significantly hurt my deduction? For example, if the service costs ~$250/month, and I charge my tenants $30 each for it, my assumption is that at tax time I'd record the $720 as income, and 66% of the $3000 as a loss, leading to a total personal expense of $1260 for me. I'm not sure if that's worth inflating my income though, since I already end up owing on my rental income at the end of the year.

2

I need to file state taxes for Pennsylvania for 2014, but I live in Alaska.

 

This is what I do know

 

A) I was an independent contractor in Allentown, PA, where I delicered nnewwpapers. Ran it for around 6 months, before I moved back to Alaska, and never filed state taxes.

 

B) I filed federal taxes with my w2 from walmart. I didn't get the 1099 from contracting in PA, and the IRS amended the return to reflect the 1099, and took out their cut of taxes. The backtaxes from that are paid.

 

C) i probably still owe state income tax in PA which im sure will be reflected when i file. That's fine.

 

What i don't know, is, basically, how to do this. What form would I need, how would I fill it out, and who would I actually send this to? My failure to file letter comes from Philadelphia, PA, but looking at the website for tax information in PA, their address is Harrisburg. Would filling out a 1040 or 1040EZ be sufficient? Or would I need something else? How would I go about indicating that the federal taxes have already been paid? I have never done state taxes ever because they aren't required for Alaska residents.

 

I am also fine using a tax preparer if needed, but I'm not really sure how to find one that would be able to handle my situation.

0

Quick rundown: I make 69k base pay and live in Florida. Currently I claim 0 allowances and my take home pay has been roughly $2,200 every two weeks. That means my adjusted pay is around 52k a year, which means I’m paying about 16k in taxes each year. Can I adjust my allowances so that I come out about even instead of getting money back during tax season (and paying so much throughout the year)? I’d rather invest that same amount of money into something like a Roth instead of leavening it up to our government to decide where to put it...

4

Hi all,

I saw there was a similar post but I am very worried and would like some clarification.

My 2016 taxes were paid for but not officially filed; I filed for an extension for 2017 and am going to send my taxes in the mail tomorrow but I am concerned about the penalty for my 2016 taxes. I am clueless when it comes to tax stuff and it wasn't until I tried to apply for financial aid that this realization hit me.

I am a student and need my 2016 taxes filed for financial aid (and you know so I don't go to jail) and am seriously worried about the repercussions of this mistake.

1

Let's say I have $5,000 in qualified educational expenses (QEE) and a $5,000 scholarship. Normally, it would be advantageous to use the scholarship funds to pay for the QEE and thus make the scholarship income tax-free (i.e. it would not be reported as income).

However, I am eligible for the american opportunity credit and my tax rate is very low - I'm in the 12% bracket. It would thus be more advantageous for me to report $4,000 of the scholarship as taxable income, leaving $4,000 of QEE for the AOTC. I would then be able to claim the full $2,500 AOTC (and I have a large enough tax liability for the year to use it up completely).

Is this allowed? Or do I need to apply a scholarship to QEE first?

2

For example, if Example Corporation is looking for a new headquarters, can they ask (and receive) any state "Let us built our HQ here for half the current business tax rate and half the current property tax rate, guarantee it for at least 10 years no matter what, and we'll build here!"? (Special exemption/situation, without the taxes going down for anyone else.)

1

Just as the long, complex title says. Can such a foundation/endowment legally mandate "we're going to invest every donation we get into stocks, of which we will donate 5% of the total donations (and any appreciation) every year to select charities and people, but we want our compensation to be from 2% of whatever gains we have on the stocks we invest the donated money into"? So for example, if the stocks with $100m donated money in them go up 20% (thus turning the $100m into $120m) the CEO/board are paid (at 2%) $400,000 (2% of the 20% gain)?

1
1

I recently traveled to China to visit some Universities. In exchange for giving talks these institutions typically want to hand you some cash. The tend to be very insistent despite one not wanting to accept the money. Anyway, I have about $1000 USD in RMB that I would like to get rid of. My preference is to just donate the cash directly to a non-profit. I am wondering if it is possible to do this in a way that the money is essentially donated by the institution that gave me the money in my name (or not but just with me as an intermediary). I usually just take the standard deduction, so claiming it as income and then writing off the donation is not ideal. Additionally, while I do not need security clearance now, there is always a small possibility that I could do work (as a scientist) in the future that might require it. I don't want there to be potential for it to look as if I have taken money from a foreign government. Any advice or insights would be appreciated.

2

Hi I filed by mail due to the irs saying I have an ID pin but I never received it. I called them and was told to file a paper return.

I sent it certified and with a signature requested and it was signed for and delivered May 7th 2018..

A few days later it showed as accepted on WMR, then the bars disappeared and now have stated “we have received your return and it is being processed, a DDD will be issued to you soon”.

I called the IRS today, and the women looked over my tax return. She said it was “put in the system May 30th” (but it showed accepted before then..?) and to not call unless I haven’t received my refund or a letter by July 29th.

The site, and their phone number says to call if you filed by mail and it’s been over 6 weeks, which it has.

Am I to expect I’m being ID verified or something? Do they send a letter for that or call? This just seems to be taking FOREVER, and everything I’ve read about bars disappearing seems to mean you’re getting a letter. Any help is appreciated!

2
2

So, say someone forgets to book a loan used to buy an asset. Can I just add in the asset & liability to the balance sheet or are there any specific adjustments that need to be made. Also, assume they are cash basis as well.

This seems simple enough, but I want to make sure I'm covering all grounds.

NOTE: I'm doing this for an 1120s.

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