FAQ's

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FAQ's

Frequently Asked Question

With over 17 years of experience in preparing taxes, we have come across a myriad of tax questions, from simple to complicated, and we value the fact that some questions require alternative actions as the tax law has layers of gray and not one true answer exist.

If you are late in filing your taxes, our experts can help you file your late tax returns to mitigate the risk of having the IRS levy your bank account, assets, or garnish your wages.  If needed, we can aid you in establishing a monthly payment plan to get back on track with paying of your tax debt. In other cases, you may be able to qualify to have your debt reduced if you experienced severe financial hardship.

If you are working as a subcontractor, independent consultant, or registered a LLC and have questions on whether a specific expense is deductible as a business expense, then call us for a free consultation. 

If you have these type of transactions, then we can aid you in analyzing the impact it will have on your personal tax return.

In most cases, the property transferred debt free to a Roth IRA will have to comply with various regulations and the rental income will be treated as investment income which will be tax-free and subject to the Roth IRA rules and regulations (ie., distributions, etc). Given the complexity of this transaction, coordination with the custodian and CPA is central to such a tax strategy.

Generally, the inheritance will not result in a tax liability. However, if the property is later sold and generates a capital gain, then you may be subject to taxes. If cash is inherited, no tax liability will result.

In most cases, if business transactions are intertwined with personal, then chances are the LLC liability protection will be pierced. This type of question reguires that you speak to your lawyer as this is beyond the scope of our services. 

Yes, all independent contractors that you paid over $600.00 through out the year will need to be issued a 1099-Misc. In addition, a W-9 should filled out by the independent contractor.

You will need to obtain an Individual Taxpayer Identification Number (ITIN) for each person you can legally claim on your tax returns. If you support your dependents and meet the other tests for claiming your dependent, then consider calling us to aid you with fling for an ITIN. Bear in mind that an ITIN can be used for bank purposes as well. If you have any questions regarding the ITIN process, feel free to call us at 415-738-8331.

In most cases, a foreigner will need to apply for the Individual Taxpayer Identification Number (ITIN). ITINs are issued regardless of immigration status because both resident and nonresident aliens may have a U.S. filing or reporting requirement under the Internal Revenue Code. You must have a filing requirement and file a valid federal income tax return to receive an ITIN, unless they meet an exception.

ITINs are for federal tax reporting only, and are not intended to serve as work permits or any other uses. The IRS issues ITINs to help individuals comply with the U.S. tax laws, and to provide a means to process tax returns for those not eligible for Social Security Numbers (SSNs).

Contact us and we can request a transcript from the IRS. The account transcript provides many of the line items that appear on the actual tax return. However, it does not provide all the details that were reported. If you lost your W-2s and 1099s, then we can request a wage and income transcript. If needed, we can request a copy of the filed copy of the tax return.

ITINs are for federal tax reporting only, and are not intended to serve as work permits or any other uses. The IRS issues ITINs to help individuals comply with the U.S. tax laws, and to provide a means to process tax returns for those not eligible for Social Security Numbers (SSNs).

If you inherited stocks, then generally your basis is long-term and the date of inheritance establishes your new basis.

 

Yes, you can lease property to an LLC you own and such an event would be treated as if it were between unrelated parties. If leasing a property to an LLC, the lease should be in writing and fair rental value should be determined.

 

Generally, Churches are not required to file the 990 tax return UNLESS they are operating an unrelated business. A cafeteria open to the public and not exclusively for members would, in most cases, subject itself to being a taxable event. As such, the 990-T would need to be filed reporting the unrelated business income tax.

 

In general, classifying a worker is highly reviewed by the IRS and State authorities.  As such, consider speaking to lawyer or your CPA to validate if your classification for the person you hired is in compliance with the IRS.

 

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