Pacun

In order to answer this question correctly, you have to read the mind of the IRS (which is hard to do). Why that question? That question has to do with the allocation of income, especially tip income. So if someone was a waitress or waiter (nowdays), if you put that previous title, the IRS could expect some tips reported. Same thing for hairstylist. I always use housewife or househusband.

I guess we now know that filing after the extension will trigger a penalty and we will not have the muscle to fight it in court. I thought the penalty was based on the amount you owed when the tax return was due. So if by April 15th, I owe 0, the penalty for not filing will be 25% of 0.

They got an extension to file and pay? I wonder how much the penalty was.

I wonder what our responsibility is in regarding to wrong W-2s. Should we questions the entries on the W-2? Let's say that an employee shows me a W-2 with box 1 $60000 and Box 3 and 5 $70,000. So I see $10K missing somewhere, I see that the employer lists $10K with code D. So I know that this is some sort of a retirement plan. Should I ask the employee to get a copy of the plan so that I can make sure that it set up correctly and if not, the $10K should be taxable. Most of the time, I don't correct W-2s and I enter the numbers on ATX as shown on the W-2.

Nice game yesterday. We do have a good team and improving every year.

I also drink a few times small amounts.

Soccer is the only place where your enemies/adversaries become your best friends when you need them the most. Portugal wasn't the exception yesterday. Yesterday, my friend said "can you believe it? the German Embassy is putting huge TV screens so American people and German come to see the game. They want to see us said when we loose to them". I said thats the best idea ever, I bet you that both teams will be celebrating at the end of the game. I was right. After watching Belgium play yesterday, we have a chance to win. I love it. And if we loose, ""Oh well, it's only soccer."" Is 4 's ever allowed? I wonder now.

I know. I never use misc either. Professional fees is the misc for most fees.

Is there any better "catch-all" than miscellaneous"?

File MFS for the husband and itemized deductions. File wife as HH and use standard deduction.

ITALIANS have a visa waiver. If they want to come to the USA, they get their Italian passport, buy a ticket, show their passport to Immigration and they are welcomed to the USA. They can go and come back as many times as they want. When they come here, Immigration asks them how long they will stay and then Immigration allows them certain time to stay here. "Renewing' this status, means that you have to go outsite the USA and come back again. At no point they get a work authization and that's why they have to marry someone so they can become a Legal Permanent Resident. If they have not being married for 2 years at the time of the interview, they get a conditional "green card" with 2 years expiration. After 3 years of being married to a USA citizen and being a green card holder, then they can apply for USA citizenship. So, the attorney is not applying for citizenship yet, regardless of how many years they have been married.

Then, you know you are dealing with honest people that they will work their way out of the child support mess. By the way, people make babies (sometimes) and fall in love for a green card, it happens all the time, but I hope this doesn't apply to your client. TIME will tell.

Then he never had a work authorization and that's why he has an ITIN.

IRS is correct. If you don't have EI, no EIC.

I am an Enrolled Agent and I have read it. Where is the violation that you are referring to? Copy and paste that part and I will see if you are right.

I request about 10 ITINs every year and they are all approved. Some of them have deportation orders from a Federal Immigration judge but they are required to file and want to file their taxes and the IRS is required to issue them an ITIN in order for them to file their taxes. There are others that go outside the US and get married. Then the US citizen comes back to the states and the spouse stays outside the USA waiting for a visa. In that case, if the both agree to file joint returns, they have to send a statement with their 1040 stating that they want the non-resident spouse wants to be treated as a U.S. resident for tax purposes and they include their global income. If you are authorized to work in the USA, you should be able to get a Social Security card and not bother with an ITIN.

If he had a work authorization and didn't renew it, most likely he is from Honduras or El Salvador and he didn't renew his TPS. If that's the case, he should have a social security card.

Who are you to decide for the client? If the client wants to marry someone who owes money and wants to file jointly, you just do the job you were hired to do. What is a bigger mistake, to marry someone who (maybe) is looking for a green card or to file jointly?

It is amazing how little we know on some areas and yet we use strong words such as illegal aliens when we refer to our clients, but that's another subject. An ITIN is for a person who crossed the border, got a towel, got himself dried and started working without the proper documentation and wants to file his/her taxes. Going back to the question at hand, this is what you need to do. First, limit yourself to prepare their taxes geting them the biggest refund legally possible or reducing their tax liablity as much as it is legally possible. If they want immigration advice, they will consult their immingration attorney. We know that not paying child support will not prevent you from claiming the child's exemption in 2013 as long as the child lived with him in the same household more than 183 nights. So you need to file as single for 2013 and if he qualifies, he can claim the child and if he further qualifies he can file as HoH. In 2014, they are both your clients and you can talk to them about the fact that if they are getting a refund, it will be redirected to cover his child support if he is not current. The wife and him have only two choices to file: MFS or MFJ. You will file 1040 all along. If you they decide to file jointly, you list her first on the return and list the husband second with his ITIN. Since he has been here in the US, you do't have to do anything special. 99% of these people file jointly because that helps to prove that their marriage is a bone fide marriage but that something that is beyond our scope. If they decide to file MFS, then you will prepare 2 1040 and that's it.

You have the case of the preparer and this one. Words are stronger that actions, correct? Man Convicted of Threatening to Kill IRS Agent and His Family Providence, R.I. (May 27, 2014) By Michael Cohn, Editor-in-Chief, AccountingToday.com A Rhode Island man has been convicted of threatening to assault and murder an Internal Revenue Service revenue agent and his family. Andrew A. Calcione, 49, of Cranston, R.I., was found guilty Friday of the charges by U.S. District Court Chief Judge William E. Smith, who presided over a trial on May 21. Calcione faces up to 20 years in prison when he is sentenced in September.

I guess you are right, there should be more severed penalties for the preparer. I guess it makes sense why the IRS doesn't go after tax payers when they get the tax preparer. Think about it, if the tax preparer got 46 months for 3,193 offenses, one of those tax payers will get prison time of LESS THAN half of a day, correct? If you don't believe me, do the math 46 month divided by 3,193. Can someone post the exact answer?

Excellent document JohnH. Thank you.

It is my understanding that if a spouse has $500K on his/her 401k, if they get divorced, the other spouse can get half of it and spend it and only pay federal and state taxes, no penalty involved. In order to qualify, what does the divorce attorney have to do? I mean what are the requirements for QDROs that attorneys should be careful when drafting divorce agreements?

The Capital Wheel opened today. http://nationalharbor.com/capitalwheel/ From that Wheel, you can take 3 ferries to somewhere (including Alexandria and Mount Vernon) You can grab a duck at Union Station, which is cool http://www.unionstationdc.com/info/sightseeing http://www.dcducks.com/ PS: You can also visit Pacun.

You could do this while in Washington, but you might not be as lucky as those people.