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Max W

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About Max W

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    ATX Master

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    Boston Red Sox, Spanish Civil War History. Flamenco Music & Guitar

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  1. Judy, thanks for all your research. I cringe every time I see form 8889. I think it is the worst form in the entire arsenal for individual returns.
  2. Unless the clients are over 65, there is a 20% penalty for non-medical withdrawals. HSA accounts are portable and can be used for self-employment. On the other hand, it may not be there at the end of the year, or it may be frozen. We are in totally uncharted waters now and another Lehman Bros type event could be even more devastating than before.
  3. The tax rate for S and MFS is the same up to $306,175. So, if it is less than that and there are no credits denied for filing MFS, then I would file S. The SD vs Itemized you don't know either way. I have never seen this be an issue with the IRS and it doesn't appear to be tracked. It could possibly come up in an audit, but the way audits are conducted, it seems highly unlikely.
  4. The IRS has said it will put up a website in a few weeks where the banking information can be provided.
  5. Max W

    Form 2848

    I just sent a test fax to the CAF unit and it went through. I faxed a 2848 last Thursday. My concern is how long it will take to be posted.
  6. Normally that can only be done by filing the two MFS returns before April 15. Is this extended now to July 15? Most likely, but does anyone know for sure? Amend the Primary on the 1040 MFJ to MFS and create a MFS for the Secondary.
  7. This was put out this AM "In the coming weeks, the Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail,”
  8. Tom, what would you say to a family that is living paycheck to paycheck and is suddenly out of work? Suck it up?! I have never found the 10% penalty to stop anyone when they needed the money.
  9. This just came from Drake. Beware of Stimulus Payment Scams Tax Professionals — here’s what taxpayers need to know about stimulus payment processing in order to protect themselves from scammers: Be alert for phone scams. The Internal Revenue Service (IRS), Treasury Department, or any other government agency will not contact you by phone to collect information for stimulus payment processing. Period. Be alert for phishing scams. Government agencies will not email or text you to collect information for stimulus payment processing. Watch for suspicious emails or texts with links or attachments requesting information for processing stimulus deposits or checks. If you receive one, do not click the link or open the attachment. It’s a scam. Delete it. Be alert for state-related scams. State agencies will also not call, email or text you to collect information or a fee to process a stimulus payment. To date, no state has introduced their own version of a stimulus payment. As of now, we are only aware of one communication a taxpayer will receive from the IRS. No later than 15 days after distributing a stimulus payment, the IRS is required to mail a notice to the taxpayer indicating the payment amount, whether the payment was mailed or deposited, and a phone number to call if the taxpayer did not receive the payment. Victims or targets of stimulus payment scams should report it immediately to the Federal Trade Commission, www.ftc.gov/complaint.
  10. What is the purpose of putting the building into an LLC? If they are doing flips, I don't see any reason. If they are going to keep the buildings as rentals, then each building should have its own separate LLC. Furthermore, if there are loans on the building, any re-titling would have to approved by the lender.
  11. Yes. There is a 2 part article in Tax Advisor from 2013 which goes over the complexities of dealing with foreign benes and it is something that the trustee and I decided it was better for someone experienced in this to handle. There are other complexities apart from the taxes that have to be dealt with.
  12. I thought that that was being implied More precise grammar would be "the tax would only have been deferred". I wasn't trying to say it was deferred.
  13. Plus, you have a third party involved, the trustee. Third parties can make things more difficult. I would just send him Section B of the 1041 with the appropriate lines highlighted.
  14. Well, it's not all bad. The tax is only deferred and tax rates may be much higher when the new property is eventually sold.
  15. US residents are taxed on worldwide income. For earned income there is a $107,600 exclusion if the taxpayer remains outside the US for 330 day in a 12 month period. The exclusion does not apply to the SE tax. There may also be a housing exclusion/deduction, if qualified. For employees, SS/Med is determined by the tax treaty with each country Under a Totalization Agreement (the US does not have this with Venezuela), where these taxes are only paid to one of the countries involved. Pub 54 is a good reference. As for the 4 states you ask about, they also tax worldwide income and some are very aggressive. They will nail you if there is any kind of nexus to the state. It can be something as innocuous as visiting your doctor, dentist, etc. However, each one may have different rules as to what is considered nexus. The business question I will leave to others. It probably should be posted as a separate question.
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