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E. Martin Davidoff
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E. Davidoff’s Answers

882 total


  • I owe both state and federal taxes from 2010 to 2012. If I filed bankruptcy, could this debt be wiped out?

    Bankruptcy, Fed & State - could this debt be wiped out? If so, would I need to file Chapter 7 - which is my preference.

    E.’s Answer

    Probably yes if you file after April 15th. Taxes are dischargeable on the later of 3 years after their due date or two years after filing. 2012 would have been due on April 15, 2013 or October 15, 2013 if you got an extension. So, the earliest 2012 could be wiped out is April 15, 2016. Other factors can come into play. So, see a bankruptcy attorney who has significant experience with tax issues.

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  • What can I do to get her to up the form for interest for income tax?

    buying a home and land package ..owner finance.we pay interest and she doesn't give a form for income tax.she told us she should be allowed to use on hers.

    E.’s Answer

    You do not need to receive a form 1098 (the form for mortgage interest) to claim interest paid on a mortgage. So, you do not need the form from the owner. Whether or not you can deduct depends upon the facts and circumstances. Consult and use a seasoned CPA who prepares income tax returns on a regular basis.

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  • Do I have to pay taxes on the amount on form 1099-c or does some sort of exclusion apply? Thanks

    Owned a home with my sister (originally hers after divorce) in NY; refinanced years ago with just my name on the mortgage; sister refinanced around 2005 and I co-signed. In May of 2012 had to do a job transfer to CA; sister stayed in the house bu...

    E.’s Answer

    There are exceptions and consulting a tax professional is a great way to get some answers. However, if you are into self-help, the IRS has a GREAT publication on this. Often such 1099-C income is not taxable. See IRSpublication 4681 (linked included) .

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  • Say $35,000 paid into you bank account from abroad as gift; is there any tax or declaration issues? thks

    say $35,000 paid into you bank account from abroad as gift; is there any tax or declaration issues? thks

    E.’s Answer

    The answer depends upon the source of the gift. The correct form if reportable is form 3520, for which I have provided a link. Even though reportable, such gifts are usually not taxable to the recipient.

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  • How do I go about filing my NY State and federal taxes.

    I used borrowed money to finance my NY company's business expenses but the business did not have any income in 2015

    E.’s Answer

    Hire a good CPA, Certified PUblic Accountant, NOW!

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  • I owe IRS and they want me to pay immediately

    I got a collection notice for me to pay back taxes, but I can't afford so I'm sending in a form call (OIC) a 656 offer in Compromise will that stop IRS from trying to make me pay. I get only 1074.00 a month. And girlfriend had big stroke is going ...

    E.’s Answer

    If you send in the form 656, be sure to include all of the required financial disclosure. This includes a form 433-A(OIC) and all attachments required. To see if you qualify, you should use the IRS Offer in Compromise Pre-Qualifier. I have provided a link. If you do qualify, go through the IRS Booklet regarding Offer in Compromise. If you proceed carefully and methodically, you may be able to succeed in an offer. An offer is better than Currently Not Collectible as it permanently eliminates the debt to the IRS if you succeed. But, it is a lot of work. If you qualify, a Low-Income Tax Clinic can assist you. I have provided a link to such clinics (IRS Publication 4134).

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  • Will there be negative consequences to ignoring a letter from the IRS not personally addressed to me but to my former business?

    I had a business that was an S corp. It ceased operating several years ago but I never filed any papers to formally dissolve it. I just kind of let the business fade away. I didn't file business taxes in the last year, I lost money but couldn't do...

    E.’s Answer

    I would consult with an attorney so that have all the facts. In my mind, however, there is something to be said for going to the post office and advising them that the business no longer exists and they should return it. By telling the Post Office that the business no longer exists, the IRS will be advise of that rather than simply that you did not pick up the mail. It is an affirmative action that you are stating the business no longer exists. Since the business hasn't operated in "several years" it is unlikely that this will become an issue for you personally. Generally, you are responsible only for payroll trust funds. In such situations, you will be receiving such mail personally and not just addressed to the company. But, you should at least consult with an attorney before making a decision so that they can evaluate ALL of the surrounding facts and circumstances.

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  • What can I do when Walmart lied to the IRS about my settlement amount and taxes witheld resulting in IRS coming after me.

    I got a settlement from Walmart in payroll form with taxes taken out, but now the IRS says Walmart provided info that they gave me double the amount of what they actually did, with the 2nd half untaxed and therefore I owe $2000.

    E.’s Answer

    Hiring an attorney is the best advice normally. But, for the amount due, it may not be practical. There is a middle ground. Get a consultation with an attorney who will tell you how to proceed. If you wish to do it yourself, appeal the IRS decision. Carefully review all the notices you receive. They will provide you the instructions on how to appeal. Probably what Walmart did was an unintentional error. Their reporting to the IRS is not definitive, just the first step. Prove to the IRS that you only received what you reported and you will eventually be upheld. If the IRS tramples on your rights, contact the IRS Taxpayer Advocate office in your area.

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  • How can I settle my IRS debt?

    I have unpaid taxes for the year 2012. I owe about $18,000 to federal. I have set up a installment agreement with irs for $300 a month but the amount I owe isn't going down with the interest and penalties. I have paid them $4,000 to $5000 and I'm ...

    E.’s Answer

    On $18,000 per year, the interest and late payment penalty should only be about $1,000 per year. You are paying in $3,600. So, be patient. Just like a mortgage, the balance will come down in the later years. The previous advise of getting an account transcript is a good idea. Request one annually. And, if the IRS placed a lien on you, you can have it removed if you are in a direct debit installment agreement for at least three months and apply for the "Withdrawal" of the lien through the IRS Advisory Group in your state.

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  • Do I need to report this transaction to IRS?

    I have a saving account in Bank "A". I opened another saving account in Bank "B". I want to transfer $50,000 from Bank "A" to Bank "B". Do I need to report to IRS?

    E.’s Answer

    • Selected as best answer

    So long as both bank accounts are in the U.S. there is no reporting requirement to move money from one back to another. This presumes you do the transfer by wire or bank check, not cash.

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