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Alicia Simone James

Alicia James’s Answers

125 total


  • I am an alien single owner of a USA LLC that have a web-based business on USA , do I have to pay federal Taxes ?

    I have no goods in USA , I do all the work outside USA , and sell only on INTERNET . my next step will be to have goods in USA to sell on-line . this will change my situation . or I have to pay taxes both ways ?

    Alicia’s Answer

    A non- resident alien that owns a U.S. LLC that derives 100% of its income from sources outside the U.S. will have no Federal tax liability. Non resident alien LLC members are taxable only on income that is "effectively connected" with the conduct of a U.S. business. "Effectively connected" income is both taxable by the U.S. and subject to the quarterly estimated payments. As a non-resident alien, would file your quarterly IRS Form 1040-ES (NR) and your annual return on a Form 1040 (NR).

    If an additional member joins the LLC, your LLC distributions will become subject to U.S. withholding. Under IRC section 1446, a non-resident alien would not pay quarterly estimated taxes. Instead, the LLC would be required to withhold 35% of your share of the LLC's "effectively connected" income. If you are a resident of a country that has a tax treaty with the U.S., the tax treaty may reduce your withholding rate to less than 35%.

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  • 1099-MISC income under - reported by the company. Should I just keep quiet or speak up?

    I work as a freelance consultant. In 2012, I did some project for a company and they paid me 16,400. Now when they sent me the 1099-MISC, I see that Box 7 only mentions 14,200. It looks like they made a mistake on 1099-MISC and do not exactly reme...

    Alicia’s Answer

    Yes. Speaking up will keep you out of criminal liability. If the amount is incorrect then you should report it. You may not have increased tax liability because of the additional income. There are a lot of deductions available for self employed individuals. If the company has done this to many other 1099 contractors then they are committing fraud. You can report them (please use a tax attorney to represent you) and get rewarded by the IRS.

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  • Is it legal to be claimed as a dependent by a former spouse without consent?

    When trying to file the tax return electronically , a message was received that it could not be completed because a tax return had already been filed using that SSN . We know it was his former wife ( though not legally separated by the court , ...

    Alicia’s Answer

    When someone else claims you as a dependent you can still file your own tax return. This is the case even if the other person has already received a tax refund. This is assuming that you are not a dependent. Please see the IRS rules here http://www.irs.gov/publications/p929/index.html. The IRS tracks everything. The IRS with probably send a letter explaining that two returns have been received claiming the same person. The letter explains the rules and instructs the person who was not entitled to claim the child to amend their return.

    If no one amends they will then ask both parties for evidence to support their claim. Evidence can include any receipts for items paid on behalf of the child like medical bills. If the child lived with you, there should be some documented evidence of that. Or if the child is independent then evidence of her independence is necessary.

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  • What is needed in order to have the child support arrears deducted out of his tax returns?

    the father is ordered to pay child support , which he also has an arrearage now . It was changed to a income deduction order where now it comes out of his paycheck . But why doesn't it come out of his tax return money like so many other people'...

    Alicia’s Answer

    To get your child support taken from the noncustodial parent's tax refund you need to contact your State child support agency. Only cases receiving full services through the state child support agency are eligible for Federal Tax Refund Offset. In some states, the custodial party may be charged a fee (not greater than $25) for this service.

    Cases eligible for tax refund offset are those cases that have a delinquent child support debt. If the child support order includes an award for spousal support, the tax refund may also cover the past-due spousal support. For a case receiving Temporary Assistance for Needy Families (TANF), the noncustodial parent must owe at least $150; in a non-TANF case, the amount owed must be at least $500.

    State child support agencies submit (certify), through OCSE to the Department of Treasury, the names, Social Security numbers, and amounts of past-due child support of people who are delinquent in their payments. Please check with your State agency.

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  • What recourse do I have when a client hires me for a Land Survey over the phone then calls back later to cancel?

    The Client gives me the property information (tax number and address), the legal description and owner address and phone number to conduct a Land Survey. We agree to a price and time line and get a verbal go ahead to do the work. Later that day ...

    Alicia’s Answer

    Unfortunately, there is not much you can do at this point. Verbal contracts are difficult to enforce.

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  • Will I have problem if i buy a condo that is in probate that the state of Florida is selling for back taxes

    1. the property is up for auction will I have problem later 2. the probate was file since 2009 and is still open

    Alicia’s Answer

    Please do not do this alone. You need an attorney. The most important issue as discussed by my colleagues is getting clear title.

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  • Ex-wife still lives with me and I pay all the bills: Mortgage, Utilities, Grocery etc. Can I use part of it as alimony for tax?

    I live in California. We have a Marital Settlement Agreement, but since I have to pay all the bills and we stay together, I do not give her any direct alimony. For tax purposes, can I deduct part of these expenses(Mortgage, Utilities, Credit Card ...

    Alicia’s Answer

    Be very careful. I am not a family law attorney. But, I can already see where your ex wife would claim that the money you use to pay bills etc. was a gift to her. This way you will still owe the full amount of alimony due. You probably cannot deduct the expenses as a part of alimony. You need to clarify this living situation asap with a contract (written, signed, and witnessed).

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  • Can my ex wife put a lien on my house, which is for sale, on an unpaid debt she claims I owe her?

    She has paperwork from 13 years ago saying I owe her this money. She has since told me not to worry about it and I have never given her any $ towards it, she is angry that I am moving. What is the process for her to get a lien and what do I do to ...

    Alicia’s Answer

    There are many different kinds of liens. Your ex wife will probably need to take you to court over the amount owed to get a judgment lien. Most liens must be in writing, signed by the lien claimant and must legally describe the property they encumber. Liens attach automatically to all property owned by the one named in the jurisdictions where recorded. I would challenge the debt in court before there is a chance of a judgment.

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  • Which W8 form I need to use if I own a Chilean company receiving payment from an American company ?

    I have a company in Chile that provides services for an American company . They have asked me to give them the proper W8 form so the IRS will not withhold tax money , but there are four options : W8 - BEN , W8 - ECI , W8 - EXP and W8 - IM...

    Alicia’s Answer

    Information on the W-8 forms can be found here http://apps.irs.gov/app/picklist/list/formsInstructions.html?value=w-8&criteria=formNumber. Please consult a tax attorney to help you with your international tax issues.

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  • Do I have to pay capitol gains taxes if I am under Chapter 13 Bankruptcy protection and the trustee kept the capitol gain?

    I sold land while under Chapter 13 Bankruptcy with the permission of my trustee. The land was owned by my brother and myself. My brother did not file bankruptcy but I did. My brother kept his half of the capitol gains but I was instructed by my...

    Alicia’s Answer

    Whether you own capital gains tax on the sale of property while in Chapter 13 bankruptcy depends on the type of loan. For example, if the debt was a nonrecourse debt. In such case, the Debtor would unfortunately have capital gain, as the entire excess of the unpaid principal balance over the Debtor's basis in the land would be treated as section 61(a)(3) gain from dealings in property, and would be included in the amount realized on the "sale or other disposition" of an asset.

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