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Sean Kennedy’s Answers

63 total


  • Should TURBOTAX be responsible for my audit with the IRS?

    I was recently auditted for the year 2011 because I was over paid and I had to pay the IRS $1290.30 I feel TURBOTAX should be responsible because they did not catch the error and they have a 100% accuracy guarantee. When filing I filled out the ...

    Sean’s Answer

    • Selected as best answer

    Unfortunately, Social Security wages doesn't necessarily have to match and the computer program isn't going to catch that discrepancy. Also, you may pay a small penalty, but most of the additional taxes owed is due to the under reporting of income. Regardless if TurboTax caught the mistake, tax would still be owed to the government. TurboTax guarantees accuracy based on the data input into the return, but they won't pay taxes that were under reported.

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  • How to remove a LLC member from managing a business when the partners are experiencing irrevocable differences.

    I'm thinking of hiring a CPA to do the books and a manager to run the store instead of the current business partner since I have an evidence; bank account statements & and loans taken out without my signature (he took my name off the business acco...

    Sean’s Answer

    This is a situation where the LLC Agreement rules the day. Refer to the paragraph regarding removal, disassociation, dissolution, etc. Then, bring it to an attorney to assist with the LLC dissolution.

    My firm has dealt with these types of matters many times before, and it can get messy, so it is always advisable to have an attorney review the LLC agreement and proceed from there.

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  • Steps after losing a case against a company

    I went to court against a company and I lost. They sent a letter to the company that I work for saying that they will start to deduct the money that I owe them per paycheck. However, is there a set percentage of my paycheck that they are allowed t...

    Sean’s Answer

    The standard in Washington is 25%. There are exceptions, but they have to do with circumstances involving child support. RCW 6.27.150 designates the exempt wages in the circumstance of garnishments.

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  • I am looking for a lawyer experienced in assisting with Private Equity document prep.

    I am at the beginning of the process of raising a 'friends and family' style seed round of $1.5 million. I intend to utilize a LLP formed in Delaware. I need an lawyer familiar with Private Equity capable of providing counsel with document prepara...

    Sean’s Answer

    Typically, Avvo isn't for solicitations, but I think my firm can be of assistance. Please review the website and contact us if we appear to be a firm to fulfill your legal needs.

    www.tollefsenlaw.com

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  • Redistribution of Tax Burden

    What law (Washington or Constitutional) restricts a corporation from offsetting a tax burden to some patrons by distributing the tax burden among all patrons? For example: 100 people go to a dinner at their country club. Each person is to...

    Sean’s Answer

    You cannot change the sales tax laws of a state. Regardless of the private vote, different items are taxed at a different rate. In your hypothetical, the patrons can agree to pay different percentages, but that doesn't change the tax allocation. If this happened and 'Jane' is paying more, she has a gripe with the establishment. This is basically analogous to included gratuities at restaurants. It is a business decision, not a legal question.

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  • What is a Federal Tax Lien and is a child responsible if the only living parent passes?

    I am the only child and my father has passed away. I am an adult age 25. My mother was never married to my father and we do not talk. My father had a home which was left to me, when I went to retitled the home I was told there was a Federal tax l...

    Sean’s Answer

    I would first check the date of the lien. An IRS lien is self-releasing and will be unenforceable after 10 years. If this 10 year period is almost up, you can just wait it out.

    If you want to dispose of the home prior to the 10 year period, the sale will be subject to the lien if the estate does not have enough to cover all of the IRS liability.

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  • Can I get an extension on the 2009 tax year?

    I haven't filed in a few years. I know I'm owed money for 2009 and 10. I want to file all these years at the same time. Can I get an extension to save my 09 refund?

    Sean’s Answer

    Yes, but you either need to file your returns by April 15th, or at least an extension. The extension will give you 6 months more if you are not ready to file by April 15th. If your taxes are complicated get to a tax professional ASAP to salvage the refund. Nonetheless, file the extension by April 15th.

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  • Recently we had a front desk worker tell a book company that she had authorization to purchase a $300 OSHA book.

    If fact, she did not have authorization to order the book. The book company is threatening to send us to collections for the money. That worker is no longer with our business now. We feel that the company should go after that worker for the mon...

    Sean’s Answer

    The general principals of agency apply here. If the 3rd party was under the impression that the worker had authority to bind the business, the business will generally still be bound to the contract. If the 3rd party knew, or had reason to believe, that no such authority existed, then your business would not be of the hook.

    Nonetheless, you could still pursue the ex-worker for recovery of the bill paid to the 3rd party.

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  • "Gift Tax" in Washington, for the recipient of a large cash gift?

    About two years ago, I received cash gifts from an older relative, totalling about $300,000. I've been a college student (on and off), and used this money for tuition, medical and mental health costs, and general living. I haven't worked during th...

    Sean’s Answer

    Recipients of gifts do not pay a tax unless they agree to pay the tax as a condition of the gift. You were right, it is the donor who is on the hook for gift tax, if applicable.

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  • Existing LLC adding new location with a new dba

    I have an existing LLC with my wife and myself as members. We are opening another location in the same kind of business with a different dba but in a different area. I already have the business license for the new dba under the existing LLC. Do I...

    Sean’s Answer

    This website should help if you are only adding a trade name and not starting a new LLC.

    http://bls.dor.wa.gov/addtradenames.aspx

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