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James William Dawson JR

James Dawson’s Answers

5 total

  • Tax exemption card?

    Will a tax lawyer help me get exemption from income and sales taxes?

    James’s Answer

    It depends on what you mean by "tax exemption card." A charitable, educational, or religious organization and several other specific organizations are eligible for a sales and use tax exemption certificate for purchasing items to be used by the organization in furtherance of it's exempt purpose. In Maryland, the organization must file a Combined Registration Application that is available on the Comptroller's web pages under "Forms." Certain entities are also eligible for exemption from federal and state income taxes. Most of these organizations must file an application with the IRS for a determination of exempt status. Once received from the IRS, then the entity can request Maryland to acknowledge the entity's exempt status. Individuals are generally not exempt from income taxes.

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  • How do I ....

    How do I go about filing for a tax exempt card? What form(s) do I need to file?

    James’s Answer

    It depends on what you mean by "tax exempt card." A charitable, educational, or religious organization and several other specific organizations are eligible for a sales and use tax exemption certificate for purchasing items to be used by the organization in pursuant of it's exempt purpose. In Maryland, the organization must file a Combined Registration Application that is available on the Comptroller's web pages under "Forms." Certain entities are also eligible for exemption from federal and state income taxes. Most of these organizations must file an application with the IRS for a determination of exempt status. Once received from the IRS, then the entity can request Maryland to acknowledge the entity's exempt status. Individuals are generally not exempt from income taxes.

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  • What is the MD statue of limitations?

    My ex hisband and I were married and filed taxes in 1999. We were audited by the IRS and they disallowed my home office credit because I could not produce invoices. I had all the 1099's for income. We paid the assessment because we could not af...

    James’s Answer

    Yes, Maryland law requires you to report any changes to your federal return to the Comptroller's office. If the change results in additional tax due, then you have 90 days to report the change (usually by filing an amended return) and pay the additional tax due. If the changes result in a refund, you have 1 year to request the refund. If you do not notify the Comptroller of the change and pay the additional tax owed, there is no statute of limitations for the amount of time the Comptroller has to assess the additional tax owed. Both you and your husband are jointly and severally liable for the additional tax, interest and penalty owed to the state. Your new husband is not liable for the additional tax.

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  • Creating an LLC in Maryland or Nevada

    I need to create an LLC and live in Maryland, would it be beneficial to create my LLC in a state like Nevada versus Maryland? If I created it in Maryland initially can it be moved to another state later like Nevada if so how hard is it and what fe...

    James’s Answer

    If you are a Maryland resident, what is your connection with Nevada for creating an LLC there? If it is for tax purposes, regardless of where the entity is organized, the LLC is still required to file income tax returns in each state in which it has nexus (does business). A LLC is also generally required to register as a foreign LLC in each state in which it does business. If your LLC is only conducting business in Maryland and you decide to organize the LLC under Nevada law, you will still need to register as a foreign LLC in Maryland and report any income earned by the LLC on a Maryland income tax return.

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  • Tax attourney advice

    sorry if you read another post on same subject.but,since i got a lien from the irs i have been getting a ton of mail from lawyers for the irs debt i have and to reduce it. not sure if these are legit or not. one reads it is better for an attourn...

    James’s Answer

    There is no simple answer to your situation. There are several options available to you to resolve your federal tax problems, but each option is dependent on your own personal financial situation and the nature of the tax debts. It is my recommendation that you consult with a reputable tax attorney in your local community to discuss your options. Some federal tax matters can be resolved without professional assistance (i.e., short-term installment agreement for liability less than $25,000 where there is no dispute as to the amount of the tax liability) and some should be handled by a professional. If you discuss your situation with a tax attorney in your local area, he/she will be able to provide you with the options that are available to you and, if advisable, assist you to obtain a resolution to your tax issues. Best wishes in resolving your tax matters.

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