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Erica Good Pless

Erica Pless’s Answers

14 total


  • I received a CP 501 letter to my corporation from the IRS. Not sure how to respond.

    The notice references BD Code SB and CP 501. It is letter number 2797. When I research this information, I am finding that this is a notice of a balance due. However, there is actually no indication of any balance due - it is merely asking me t...

    Erica’s Answer

    IRS typically issues Letter 2797 to verify a taxpayer's address if mail has been returned as undeliverable or insufficient. IRS may be attempting to notify you about an issue on the account (balance due, missing return, etc.). You should retain a qualified tax professional to assist you.

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  • Is it feasible to work with a Tax lawyer out of state?

    If a deceased family member didn't file taxes last 6-8 years of life, being elderly and ill, in addressing this would it be feasible to work with a lawyer in NY for preparing Federal and NYS/NYC income tax returns if the family member trying to ge...

    Erica’s Answer

    While I agree with the other posts that a CPA can prepare the returns, it may be advisable to meet with a qualified tax attorney to discuss any possible estate tax, gift tax, or transferee liability issues that may arise. In these circumstances, it is highly recommended to retain both a CPA and a tax attorney.

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  • Ex Deferred Rental Home/Vacation Home Taxes Until After Divorce. Am I Liable?

    I was a stay at home mom. We had a vacation home in a different state of which we rented out to others. This gave us rental income. My ex deferred the taxes on this for a couple of years until after our divorce. I was sent a bill for $22,000 i...

    Erica’s Answer

    As several of the other attorneys stated, the general rule is that spouses who file a joint return are both liable for the income tax due. That means the IRS can collect the balance from either you or your ex-spouse. However, the IRS can only collect the full amount one time. Therefore, if your ex-spouse pays the liability you will not be required to pay it. However, depending upon your divorce decree, if your ex-spouse pays the liability you may be required to reimburse him for your portion. If your ex-spouse does not pay the tax liability, you can apply for innocent spouse relief with the IRS. There are numerous factors IRS will consider in this situation, including your current financial situation, health, education, any spousal abuse, etc. You should consult a qualified tax attorney to discuss your options.

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  • Need to know tax question regarding LLC.

    In the state of Florida with an LLC i'm selling my invented items at $270 ea. and i'm selling 1200 of them what are my taxes owed.

    Erica’s Answer

    A lot more information is needed to properly answer your question (how your LLC is taxed, other business expenses, capital expenses, cost of goods sold, filing status, dependents, etc.). I highly recommend you meet with a competent certified public accountant to review your situation and have him or her prepare your tax returns.

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  • My husband is starting the naturalization process and our attorney has advised us we need our tax papers...and transcripts.

    I'm not sure what to do. They need our tax returns from the past 3 years, a transcript and we also had to of filed jointly. We also owe about $17,000 and have been receiving letters. I'm kinda scared now...and not sure what to do. Can my atto...

    Erica’s Answer

    As the previous attorneys noted, you can obtain your tax return transcripts from the IRS. Also, if the balance owed to the IRS is under $25,000 you may qualify for a streamlined installment agreement. A taxpayer can request this type of agreement over the phone without providing extensive financial information. The payments are usually spread out over 5 years and require direct debit payments. You may want to consult with a qualified tax attorney to help you through the process.

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  • I have a Irs lien. My wife is a innocent spouse. Is she able to secure a loan and be alone on the deed No commingled funds..

    Is there a way to construct this scenario with me not involved. This is in Florida...

    Erica’s Answer

    Your question does not provide all of the information necessary to give a complete response. As indicated by the previous attorneys if you and your wife filed a joint income tax return than your wife would need to be granted innocent spouse relief by the IRS in order for her to be relieved of the liability on the joint income tax return. If you filed separate tax returns and you are the only one with a tax liability than your wife can purchase property solely in her name and not be affected by your tax liability. However, if you give your wife the money to purchase the house the IRS can argue that she is your alter ego or nominee and may be able to issue a lien against her in this manner. I recommend that you meet with a qualified tax attorney to review your case in more detail.

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  • We could not pay our taxes since 2007, due to illnesses, money went to Drs. and Hospitals instead.

    keeping up with Drs. bills so that we could continue to be treated, meant that no money was left to pay taxes. These problems have continued to date. There is no business left, therefore no income except sometimes a check arrives from past account...

    Erica’s Answer

    You have several options available to you. As the previous attorneys have suggested you may be eligible to file bankruptcy and discharge your income tax liabilities. You may also qualify for an Offer in Compromise or Currently Not Collectible status. Additionally, it may be worthwhile to submit a request for penalty abatement due to your illnesses. I highly recommend that you meet with a qualified tax attorney to discuss your options.

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  • We were in the process of an installment agreement, and IRS put a wage levy.

    Is this even fair?? We are in the process of an installment agreement, haven't heard anything from our IRS rep (several attempts to reach him were unsuccessful); it wasn't like were weren't willing to pay back what we owe, however, the large amou...

    Erica’s Answer

    As the other attorneys have stated, you should contact your current representative. I would not recommend that you handle this by yourself. It is best to hire a qualified tax attorney in these types of cases.
    The IRS has the right to levy your wages unless you have timely filed for a Collection Due Process Hearing or have taken some other action to prevent the IRS from taking enforced collection. Also, if an installment agreement is pending, most IRS Revenue Officers will place a code in the system that prevents levy action. Once the installment agreement is approved (if it is approved) the levy on your wages should be lifted.

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  • Tax filing - form 1099-R, early distribution IRA from my ex

    My ex gave me last year all his IRA ( $ 6300 ) when we got divorce . Its early distribution since he is only 48 . I received it as a check , no rollover . The account has been closed , no more fund left . Now I have to file tax based on t...

    Erica’s Answer

    Distributions from an IRA account must be properly reported as IRA distributions on your tax return, not as miscellaneous income because IRA distributions are subject to special tax rules. Specifically, early IRA distributions are subject to a 10% penalty. There are also special rules related to IRA distributions received in divorce settlements. I highly recommend you consult with a Certified Public Accountant (CPA) or a qualified tax attorney before filing your tax return.

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  • Taxes owed to the IRS from 2011 from my ex spouse and I were married came out of my tax refund after he set up a payment plan

    We divorced in 2010. My ex spouse solely worked full time as i was a stay at home Mom but apparently something was not filed right in 2009 and in 2011 he received notice about this. He held the notice from me until last minute as the amount due wa...

    Erica’s Answer

    If a joint tax return is filed, both spouses are jointly and severally liable for the tax liability. This means that the IRS can collect the entire amount from either spouse. However, you may qualify for spousal relief depending upon various factors. In order to request innocent spouse relief, you will need to file Form 8857. You can find this form and the instructions by searching on the Internet. You may want to consult with a qualified tax attorney but the legal fees may exceed the amount of the tax liability. You can also search for a Low Income Taxpayer Clinic in your area which may provide free assistance to you if you meet their eligibility requirements. Hope this helps.

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