Matthew Scott Ritchie's Answers

Paying Federeal Tax on Repossessed Automibles

Unfortunately, I see this situation too often. Many taxpayers will incur a tax liability because they are unaware that the IRS may treat forgiveness of debt as income. The taxpayer will file the return excluding the forgiveness of debt. Years later the IRS will conduct an additional tax assessment and determine a liability is due because taxes were not paid on the unforgiven amount. You should probably start hearing a lot more about this issue due to the foreclosure crisis.

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Filing Federal and State Income Taxes (Calif.)

You are taking a step in the right direction. My law firm represents taxpayers who owe back taxes to the IRS. Your case is not uncommon. We generally recommend that the taxpayer file their tax returns (last seven) before seeking legal assistance. However, the number of tax returns you will need to file should be determined by a CPA, Enrolled Agent or tax professional. Once you file your tax returns you will have a better understanding of how much you owe the IRS. Thereafter, you can contact a...

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Canadian income tax on court settlement

It will depend on the specific facts and circumstances surrounding your case. Please provide more facts.

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Is there a way to get through to a live person at the IRS? I reported my soon to be ex-wife for cheating her taxes. We have

I have to agree with the response from Mr. Smith. Although you are trying to do the right thing, it will cost you too much time, effort and frustration in the long run. You filed the form with the IRS. Let them do or not do their job. You can't force them to do anything and you will drive yourself crazy trying. I know this isn't the answer you were seeking. Best of luck.

Is a settlement for lost wages due to wrongful termination taxable in Texas? And if so the rate?

You need to check with your attorney and verify how the funds are being classified. Furthermore, if you are required to pay taxes, the amount you will pay depends on various factors. You should seek assistance from a CPA or Tax Preparer.

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Am I responsible for my deceased husbands unpaid taxes?

My concern is with your statement that he even owed personal taxes for this year. Did you file married filing jointly for this year? If you did sign the tax return with an amount owing and it has not been paid in full then you are liable for this particular debt. If you did not file together and did not sign the return then he is solely responsible. However, the IRS may still come knocking. When an individual passes away and they owe back taxes the IRS will more than likely contact the...

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I have inherited business property. Several years of back taxes are due. Should I hire a tax attorney or a real estate attorney?

I agree with the responses above. You first need to determine what type of tax you will owe. If real estate then speak with an experienced real estate attorney. If you owe Payroll or Income taxes then you need to speak with an experienced tax attorney. Since you inherited the business the IRS may also look at the Estate if the individual (assuming he/she is deceased) owed personal taxes. An experienced tax attorney can assist with this as well. Dealing with the IRS can be frustrating and time...

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