Igor Drabkin's Answers

Gift tax law, maximum gift per year without incurring a gift tax

Under the federal tax law, it is possible. There won't be any gift tax on the donor because $200,000 is less than the current lifetime gift exception. You would need to file a gift tax return, however.

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I am convicted of income tax evasion, will go to jail & cannot pay what I owe. Can Govt take my & my wife's social security.

As stated in the response above, the IRS can levy on the Social Security benefits. I'd like to clarify, however, a point about your wife. Aside from your criminal tax conviction, there may be a civil tax liability for the underreported income and resulting taxes. If the tax returns for the years at issue were jointly filed, the IRS may try to assert this tax liability as a joint liability. In order for your wife to be relieved of the tax liability, she may consider whether to file for...

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What can do to keep the IRS and Franchise from taking the money I owe from back taxes(1998-2002) from my inheritance?

Both agencies, the IRS and the FTB, may periodically review the temporary uncollectible status. If you receive an inheritance, your state and federal tax liabilities may affect it. They may levy your accounts or file a notice of federal tax lien, attaching to the assets. It may be beneficial to seek a permanent resolution with the IRS and the FTB, such as an installment agreement or an offer. Note: This answer is made available for educational purposes only. By using or participating in...

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Do i pay taxs on my settlment of 60,000.00 i was awarded

Taxation of the proceeds received subject to divorce differs based on the nature of payment. Property settlements subject to divorce are not taxable. Alimony (spousal support) payments are taxable to the receiving spouse and deductible to the paying spouse. Amounts paid under divorce or separate maintenance decrees or written separation agreements entered into between you and your spouse or former spouse will be considered alimony for Federal tax purposes if: 1. You and your spouse or...

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Can I file an amended return for '04 & 05 tax years If I went to tax court yesterday & the Judge still hasn't ruled on the case

The IRS will not process the mended returns if the years at issue are subject to the Tax Court proceeding. Your tax liability for 2004 and 2005 will be based on the decision by the Tax Court judge and the IRS will assess this liability based on the judge's opinion. If your Tax Court case was a regular case, you can appeal that decision. If your case was an "S" case (for small cases under $50K in tax), then you don't have a right to appeal it and the decision will be final.

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California Tax limitation and new spouse responsibility for back taxes

Unfortunately, the statute of limitations for California tax collection is much longer than the IRS statute of limitations, which is the 10-year one that you referred to in your post. Effective July 1, 2006 under new legislation, the statutory period for collection by the California Franchise Tax Board is 20 years. Before that date, the FTB had an unlimited period of time to collect delinquent taxes. If the tax liability was assessed against you and your wife, then they can collect against...

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What do they mean when they say the word "cumulative" re: the FBAR

What is meant by the word "cumulative" is whether the total value of all the accounts exceeded $10,000. For example, if you had three foreign accounts with $4,000 each, you still would have an FBAR filing requirement because the cumulative value is more than $10,000.

A US resident dies leaving an offshore account to a child beneficiary who is a US citizen. No FBAR was filed by the deceased.

Whether the beneficiary had any obligations for the years prior to the owner's death may depend on how the account was set up: whether the beneficiary had any present interest in the account or had a signature authority over the account. If the beneficiary becomes a legal owner now, then he would have FBAR filing obligations for 2011, assuming that the account is more than $10,000. It would be appropriate to consult with an attorney to determine whether there're any filing obligations for...

Taxes on inheritance

If you are a recipient of inheritance, then there would not be tax imposed. However, there are certain reporting requirements attributable to gifts or inheritances from foreign sources. You will need to consult with a professional to ensure that you properly report it. The information contained herein is not intended to substitute for professional legal advice and does not create an attorney-client relationship. You should accept legal advice only from a licensed legal professional with...

Tax implication for money inherited from my father that had lived and passed away in Israel.

I'd like to add one more thing. Aside from the estate tax implications, there may be a required to file an FBAR (Report of Foreign Bank and Financial Accounts). If your wife had control over a bank account in Israel, she may be obligated to file this information return. Disclaimer: The materials provided herein are for informational purposes only and do not constitute legal advice.