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Anne Marie Diggle Rabago

Anne Rabago’s Answers

29 total

  • Can i file bankruptcy for my audited 2009 tax return?

    I just received an audit notice from IRS a week ago. My tax preparer did my return. I am a retiree living on social security and i live outsite United States now. I filed my return in Oklahoma. I still file my tax return every year. What are my op...

    Anne’s Answer

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    As you have read, the answer to your bankruptcy question is - no.

    However, just because you received an audit notice does not necessarily mean you will be assessed addition taxes. If your 2009 was filed completely and accurately, the IRS may just be asking for you to substantiate (or prove) what you claimed.

    If you end up owing additional taxes for 2009, the IRS Offer in Compromise (OIC) program MAY be a good option for you depending on your assets, income, and expenses. The OIC program is used to settle tax debts and does not have the time requirements associated with bankruptcy. If your only source of income is Social Security, you are a likely candidate for this or Currently Not Collectible status.

    It would be wise for you to consult a tax attorney. Please do not ignore your IRS notices. The Federal Payment Levy Program enables the IRS to attach a claim to your Social Security and keep up to 15% of your monthly payment to offset an "assessed" tax debt.

    Hope this helps. If you think this post is helpful, please click on the "mark as good answer" button below.

    LEGAL DISCLAIMER
    I am licensed to practice law in CA & TX, and my office is located in San Diego, CA. I am providing this response for your general information. This response is not legal advice, nor is it intended to be. You should consult an attorney for advice regarding your individual situation. I invite you to contact Rábago Law. However, communication through this website does not create an attorney-client relationship and is not protected by the attorney-client confidentiality rules.

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  • I married a Colombian national in september, I still must file my taxes single at the end of the year correct?

    I cannot claim that I am married for tax purposes until my new wife and her children are living physically in the United States even though my marriage gets recorded here in the U.S.A., I still need to file as being single on my 2011 federal tax r...

    Anne’s Answer

    All good advice, but just one last item on this. Your spouse and each dependent must have either a Social Security Number or an Individual Taxpayer Identification Number (ITIN) in order to be claimed as an exemption or a dependent. You can learn more about ITIN's on the IRS website (link below).

    Hope this helps. If you think this post is helpful, please click on the "mark as good answer" button below.

    LEGAL DISCLAIMER
    I am licensed to practice law in CA & TX, and my office is located in San Diego, CA. I am providing this response for your general information. This response is not legal advice, nor is it intended to be. You should consult an attorney for advice regarding your individual situation. I invite you to contact Rábago Law. However, communication through this website does not create an attorney-client relationship and is not protected by the attorney-client confidentiality rules.

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  • AMENDED TAXES

    how can i amen my taxes to put my spouse on my taxes. she does not have a ss# i was asked my uscis

    Anne’s Answer

    All of the previous answers are good.

    If your wife does not have a Social Security Number, she may be able to complete an IRS Form W-7 - Application for IRS Individual Taxpayer Identification Number (or ITIN - see link below). An ITIN is used for federal tax purposes only.

    Hope this helps. If you think this post is helpful, please click on the "mark as good answer" button below.

    LEGAL DISCLAIMER
    I am licensed to practice law in CA & TX, and my office is located in San Diego, CA. I am providing this response for your general information. This response is not legal advice, nor is it intended to be. You should consult an attorney for advice regarding your individual situation. I invite you to contact Rábago Law. However, communication through this website does not create an attorney-client relationship and is not protected by the attorney-client confidentiality rules.

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  • Allowed ex-husband to claim kids on his taxes, and he got audited. Can I claim them now, as I have extension on mine...

    My ex-husband and I have 2 children together. We are recently divorced, and I was told it would be ok if we took turns in claiming the kids on our taxes. I let him claim them this year, he got his refund, then he recently got a letter that the IRS...

    Anne’s Answer

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    Based on what you stated above (and your divorce agreement), your ex was entitled to claim the children in 2010. As the attorneys above have stated, if he is not the custodial parent, you must sign and provide IRS Form 8332 - Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent (link below). Your ex must then file the signed form with the IRS.

    If you file your 2010 taxes and claim the children, you are also likely to be audited (since he filed first and is probably disputing his audit findings). In addition, you would be in violation of your divorce agreement, and he could take you back to family court for enforcement.

    A good tax professional should have advised you both of the need for IRS Form 8332. Until and unless the requirements change, this form will be required each year that the non-custodial parent claims the children.

    Hope this helps. If you think this post is helpful, please click on the "mark as good answer" button below.

    LEGAL DISCLAIMER
    I am licensed to practice law in CA & TX, and my office is located in San Diego, CA. I am providing this response for your general information. This response is not legal advice, nor is it intended to be. You should consult an attorney for advice regarding your individual situation. I invite you to contact Rábago Law. However, communication through this website does not create an attorney-client relationship and is not protected by the attorney-client confidentiality rules.

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  • If my significant other owes back taxes and we get married before it is settled, will my small business be held responsible?

    I have a small business and my significant other is in the process of settling a tax issue. If we get married before the settlement, will that change his financial status and will my small business be in any way responsible for his tax issue?

    Anne’s Answer

    You would be wise to speak to a tax adviser about how best to proceed.

    Technically, the tax debt your significant other brings to the marriage is HIS obligation. That said, there are actions you could take which would blur that clear distinction and open YOU to liability.

    Depending on your business structure, e.g. sole proprietor, LLC, etc., that liability may or may not impact your business finances even if the tax authority cannot reach the business directly.

    In answer to your second question, if your significant other is pursuing an Offer in Compromise to settle his tax debt, your marriage could change his financial status because the IRS (assuming this is a federal income tax debt) looks at the entire household to determine income and expense for purposes of negotiating the offer.

    Hope this helps. If you think this post is helpful, please click on the "mark as a good answer" button below.

    LEGAL DISCLAIMER
    I am licensed to practice law in CA & TX, and my office is located in San Diego, CA. I am providing this response for your general information. This response is not legal advice, nor is it intended to be. You should consult an attorney for advice regarding your individual situation. I invite you to contact Rábago Law. However, communication through this website does not create an attorney-client relationship and is not protected by the attorney-client confidentiality rules.

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  • My Exwife and I still owe CFTB taxes from 08 & 09, we both set up to repay the taxes owed. Now she has stopped what can I do?

    I received notice today and they reastablished my payment but not hers.

    Anne’s Answer

    Many more facts are needed to answer your question...

    When you file a tax return as Married Filing Jointly, you are agreeing to joint and several liability for all tax that is due. Joint and several liability means the tax authorities can collect the tax from both of you or either of you, individually. There may be nothing you can do. However, depending on whether this outstanding tax liability was addresses in your marital settlement, you may have recourse with the family court. Also, depending on what actually gave rise to this tax debt, you may be able to seek relief from the California Franchise Tax Board directly.

    You can review the eligibility requirements for the Innocent Joint Filer Tax Liability Relief options on the California Franchise Tax Board website (link below). If you believe you may be eligible for "Innocent Joint Filer Tax Liability Relief," you may want to consult with a tax attorney.

    Hope this helps. If you think this post is helpful, please click on the up button below and/or designate my answer as best answer.

    LEGAL DISCLAIMER
    I am licensed to practice law in CA & TX, and my office is located in San Diego, CA. I am providing this response for your general information. This response is not legal advice, nor is it intended to be. You should consult an attorney for advice regarding your individual situation. I invite you to contact Rábago Law. However, communication through this website does not create an attorney-client relationship and is not protected by the attorney-client confidentiality rules.

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  • I am the custodial parent of my two sons. Can my ex wife claim one of them on her taxes?

    They are with her less than 10% of the time; one weekend per month. She does not pay child support or for any medical/dental/school needs of them. The weekend she does have them they are with her parents. Can she claim one?

    Anne’s Answer

    The simple answer to your question is yes. However, several test must be met and as the custodial parent, you must provide your ex-wife with IRS Form 8332 (see below).

    IRS Publication 17, Chapter 3 on Personal Exemptions and Dependents (see below) provides that in oder to claim a child as a dependent on your tax return, the child must be a "qualifying child." This requires that six tests be satisfied: (1) Relationship, (2) Age, (3) Residency, (4) Support, (5) Joint return, and (6) Special test for qualifying child of more than one person. You do not provide enough facts to determine whether or not the child qualifies under this test. However, if the child qualifies, the IRS allows ONLY ONE person to claim the child for ALL tax purposes.

    Generally speaking, a child of divorced or separated parents is considered the qualifying child of the custodial parent. However, the child will be treated as the qualifying child of the noncustodial parent if all four of the following requirements are met: (1) The parents: a) Are divorced or legally separated under a decree of divorce or separate maintenance, b) Are separated under a written separation agreement, or c) Lived apart at all times during the last 6 months of the year, whether or not they are or were married; (2) Each child received over half of his or her support for the year from the parents (either one of you); (3) The child is in the custody of one or both parents for more than half of the year; and (4) The custodial parent signs a written declaration that he or she will not claim the child as a dependent for the year, and the noncustodial parent attaches this written declaration to his or her return, i.e.IRS Form 8332.

    Beginning in 2009 (for a post-2008 divorce/separation), noncustodial parents can no longer just attach pages from a divorce decree or separation agreement. Instead, IRS Form 8332 or a similar statement with the sole purpose of releasing claim to the qualifying child must be signed by the custodial parent. That form or statement must then be attached to the noncustodial parent’s tax return and submitted each and every tax year.

    Hope this helps. If you think this post is helpful, please click on the thumbs up button below and/or designate my answer as best answer.

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  • Is it legal for my x husband to sign my signature on tax returns

    I divorced my X husband 3 yrs. ago. Now we are in mediation. I had a chance to see a copy of his tax statements and saw my name on the document. He had signed my name and I did not give him permission. As a matter of fact I did not even know tha...

    Anne’s Answer

    You are correct...there is no telling where all your ex-husband has forged your signature. Also, forging your signature is not legal. However, it is unclear from your question whether his forging your signature on the tax return has caused you any harm.

    The biggest potential problem here is that couples who use the Married Filing Jointly status have "joint and several liability" for any taxes that are due on the return. When you actually sign a tax return with your spouse, the government takes that to mean you agree to pay any tax that is due regardless of who earned the income. Joint and several liability means you are liable for the tax BOTH as a married couple and as an individuals.

    That said, a forged signature is not a voluntary signature. So, unless you filed your own return as Married Filing Separately, you actually have not filed a return for the year(s) in question.

    You may need to file another return as Married Filing Separately (for the year(s) prior to your divorce). You will have to show the IRS that the signature on the return filed by your ex-husband is not yours. Usually, you can get a copy of the return that was filed from the IRS, but they will charge you a fee for this.

    Finally, it is not clear from your statement whether taxes were owed and paid (or not paid) by your husband or if a refund (a portion of which you may have been entitled to) was issued to your husband. If taxes were due and not paid, this can present significant problems for you with the IRS and you should take immediate action. If taxes were due and paid, you may want to consider whether this is a battle you really want to pick; likewise with a refund which he held all for himself. I caution you only that the administrative process for dealing with any of this through the IRS is lengthy and cumbersome, and you will likely need legal assistance.

    Hope this helps. If you think this post is helpful, please click on the thumbs up button below and/or designate my answer as best answer.

    LEGAL DISCLAIMER
    I am licensed to practice law in CA & TX, and my office is located in San Diego, CA. I am providing this response for your general information. This response is not legal advice, nor is it intended to be. You should consult an attorney for advice regarding your individual situation. I invite you to contact Rábago Law. However, communication through this website does not create an attorney-client relationship and is not protected by the attorney-client confidentiality rules.

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  • My dad wants to lend me money to buy a car, how do I do regarding taxes?

    My dad has a cashier check that exceeds $10,000 for me to buy myself a car, but in order to proceed, i would have to cash the cashier's check and I dont know how does this goes regarding taxes, how does this works?

    Anne’s Answer

    If your dad gives you a LOAN of more than $10,000, you are correct there are tax implications.

    First, your dad is obligated to charge you interest at a minimum rate set by the IRS (see link to Applicable Federal Rates below). If he does not charge you this interest, the IRS will take the liberty of “imputing interest” to your loan transaction. In addition, your dad will be obligated to report the interest he earns from this loan as income on own tax return. Even if you do not pay the interest, the IRS will require your dad to include this statutory amount of interest in his income.

    To ensure the IRS does not reclassify this LOAN as a GIFT, you need to take the following measures:
    (1) draw up a contract or promissory note signed by both you and your dad;
    (2) outline how much money is being lent;
    (3) state the rate at which interest will be paid (no less than the Applicable Federal Rate) and compounded;
    (4) determine a schedule of payments over time; and
    (5) provide proof of your ability to pay your dad back according to the stated schedule (for example, paycheck stubs and/or bank statements)

    There are two exceptions to the rules stated above: (1) If your dad gives you a LOAN of less than $10,000, the interest requirements stated above do not apply; or (2) if your dad gives you a GIFT of less than $13,000 there are no tax implications to either you or your dad.

    A gift is any transfer to an individual, either directly or indirectly, where full consideration is not received. Under I.R.C. § 2503(b)(1), the first $13,000 (2009 amount adjusted for inflation per I.R.C. § 2503(b)(2)) of gifts made to any person by the donor during the calendar year is not included in the total amount of gifts made during that year, and is therefore not taxable.

    Hope this helps. If you think this post is helpful, please click on the thumbs up button below and/or designate my answer as best answer.

    LEGAL DISCLAIMER
    I am licensed to practice law in CA & TX, and my office is located in San Diego, CA. I am providing this response for your general information. This response is not legal advice, nor is it intended to be. You should consult an attorney for advice regarding your individual situation. I invite you to contact Rábago Law. However, communication through this website does not create an attorney-client relationship and is not protected by the attorney-client confidentiality rules.

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  • Which parent is entitled to claim our son as a dependent for tax purposes?

    My son is 19 months old. He has lived with me for the past 15 months and I have not received any child support up to this point. However, I was able to recently come to an agreement with his father on a monthly amount he will be contributing to ou...

    Anne’s Answer

    Generally speaking, the child of parents who live apart is considered the qualifying child of the custodial parent. However, the child will be treated as the qualifying child of the noncustodial parent if all four of the following requirements are met:
    (1) The parents: a) Are divorced or legally separated under a decree of divorce or separate maintenance, b) Are separated under a written separation agreement, or c) Lived apart at all times during the last 6 months of the year, whether or not they are or were married;
    (2) The child received over half of his or her support for the year from the parents;
    (3) The child is in the custody of one or both parents for more than half of the year; and
    (4) The custodial parent signs a written declaration that he or she will not claim the child as a dependent for the year, and the noncustodial parent attaches this written declaration to his or her return.

    The custodial parent is the parent with whom the child lives for the greater number of nights during the tax year. If the parents divorced or separated during the year and the child lived with both parents before the separation, the custodial parent is the one with whom the child lived for the greater number of nights during the year. The IRS looks specifically at the number of nights the child sleeps in each parent’s home and/or sleeps in each parent’s company. For more information on this, refer to IRS Publication 17, Chapter 3 on Personal Exemptions and Dependents (link below).

    Beginning in 2009, noncustodial parents can no longer just attach pages from a divorce decree or separation agreement. Instead, IRS Form 8332 (link below) or a similar statement with the sole purpose of releasing claim to the qualifying children must be signed by the custodial parent. That form or statement must then be attached to the noncustodial parent’s tax return and submitted each and every tax year.

    Hope this helps. If you think this post is helpful, please click on the thumbs up button below and/or designate my answer as best answer.

    LEGAL DISCLAIMER
    I am licensed to practice law in CA & TX, and my office is located in San Diego, CA. I am providing this response for your general information. This response is not legal advice, nor is it intended to be. You should consult an attorney for advice regarding your individual situation. I invite you to contact Rábago Law. However, communication through this website does not create an attorney-client relationship and is not protected by the attorney-client confidentiality rules.

    See question