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Timothy E. Harden

Timothy Harden’s Answers

5 total

  • Do I have to file an estate tax form?

    The amount of the estate is only around 134,000. The estate does not generate income. I am in Michigan.

    Timothy’s Answer

    My colleagues have answered the federal question, so I thought I would address the Michigan aspect. There is not a Michigan estate tax or inheritance tax currently, so you do not have a filing requirement in Michigan either.

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  • Federal Estate Tax Return (706)

    When a decedent dies and the decedent has a s-corporation, does the assets in the corporation have to be reported on the Federal Estate Tax Return? It is my understanding that all assets of a decedent has to be reported to the Federal Estate Tax...

    Timothy’s Answer

    I agree with my colleagues that it is the stock of the corporation that would be reported, not the assets. Of course, the value of the assets would have an impact on the value of the stock. I also agree that you should talk to an attorney in more detail about whether you even need to file the 706. Finally, if you do have to file it, having a professional help you with it would decrease the likelihood that it would be audited.

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  • I would like to place my 2nd home in Michigan state into an estate. I would like to protect from future creditors.

    where do I go to read up or talk to: on the pro's and con's of doing this?

    Timothy’s Answer

    As far as reading up, I would say google "asset protection planning." That is the term for what you are trying to do. It's doubtful whether a trust is the way to go with real property in Michigan though. An LLC might be a better option, depending on your situation. Feel free to give me a call if you would like to discuss it further.

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  • My divorce attorney mis informed me as to how the taxes would be resolved per a QDRO. Will the IRS grant me a tax adjustment?

    He stated in an email that the taxes would be prepaid on a settlement of stock that I received in lieu of spousal support. I believed him and his email. At the time of signing the paperwork, the divorce was finalized and I was left without nothi...

    Timothy’s Answer

    To answer the IRS side of the question, based on what you have said here, you may qualify for tax relief from the IRS. This would likely be either an Offer in Compromise or Currently Not Collectible status. However, it is a pretty detailed review to see if you actually do qualify, so I would consider meeting with a tax attorney to go over your situation.

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  • Tax examiner has asserted the civil fraud penalty on my tax return , what trouble am I in ?

    I submitted a form for non-cash charitable contributions for $3000 that was out dated and the person who signed it hasn't work there since 2003 . oops . I told her the items were donated but she said the form I submitted was fraudulent and now the...

    Timothy’s Answer

    Hello, I agree with the other two answers, to an extent. The "civil" in civil fraud penalty means that it is not a criminal issue, at least right now. However, that does not mean the examiner could not refer you to the criminal division. You really should considering hiring someone to work with you on this, or at least consult with them. This is the kind of thing that could go away with you just paying the penalties, or it could escalate.

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