US citizens who have authority over foreign financial accounts whose cumulative balances exceed $10,000 USD at any one point in the tax year must file a Report of Foreign Bank and Financial Accounts (FBAR), for example if you have a checking o...
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.See question
What are the Tax obligations/options of the beneficiary prior to, or after receiving the proceeds , either in a US or offshore account? The will is executed abroad.
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 the beneficiary for prior years.See question
Are we subject to pay taxes on the inheritance transfered from Iran to the US?
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 whom you have an attorney-client relationship.See question
My wife has no income except the 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 innocent spouse relief under Internal Revenue Code section 6015. Furthermore, if you live in California, then community property rules apply, and the IRS, as any other creditor, may try to enforce the debt owed by one spouse against community property.
Note: This answer is intended to educate the reader, but should not be relied upon as any type of legal advice because the information provided is incomplete. No attorney client relation is formed with me without a written contract.See question
I have tax debt with both agencies. I am on a hardship hold with both and have been for several years. If I had the money I would do an offer and compromise but I do not. Does this mean that if I were to inherit money that the larger amount (inclu...
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 this site you understand that there is no attorney client privilege between you and the attorney responding.See question
Hi, My father in-law has passed away in Israel and has left my wife with money that has been produced due to liquidation of a house. This money is being held in bank account of my wife's brother. Now he wants to transfer the money to my wife w...
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.See question
i received a notice of levy from the irs is it to late to make payment arrangements?
No, it's not too late. Depending on the notice, you still may have appeals rights as well. If it's a Final Notice of Intent to Levy, the taxpayer has 30 days to request a Collection Due Process hearing.See question
noncontested divorce awarded 60k +675.00mo. for life . what taxs am i responsible for?
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 former spouse do not file a joint return with each other,
2. You pay in cash (including checks or money orders),
3. The decree of divorce or separate maintenance does not say that the payment is not alimony,
4. If legally separated under a decree of divorce or separate maintenance, you and your former spouse are not members of the same household when you make the payment,
5. You have no liability to make the payment (in cash or property) after the death of your spouse or former spouse; and
6. Your payment is not treated as child support.
Do I have them or me report it come tax time .
No, you don't have to pay tax. Gifts are not taxable income. Your parents, however, may be required to file a Gift Tax Return and report the amount of the gift. If the gift amount exceeds the annual limitation, but does not exceed the lifetime limit, there won't be any tax due, although a gift tax return needs to be filed.See question
can they hold my pension from me if I have a tax lien
A federal tax lien is not self--enforcing. However, if the IRS issues a levy to enforce its lien to your pension plan, they can get to your retirement funds, provided you can access them as well. The IRS steps into the shoes of the taxpayer and if you are entitled to receive the money, the IRS can get it.See question