James Elliot Pratt’s Answers

James Elliot Pratt

Contracts / Agreements Lawyer.

Contributor Level 12
  1. Is there a way to reduce the CA franchise tax if my business is not operating or generating sales/income?

    Answered over 2 years ago.

    1. Michael Charles Doland
    2. James Elliot Pratt
    3. Andrew Kevin Jacobson
    3 lawyer answers

    If you choose to form an LLC you cannot avoid the minimum $800. If $800 is a crippling expense you may consider a sole proprietorship to avoid that tax, but you would lose any limited liability otherwise available under an appropriate business entity. You need to analyze any risks associated with your business an potential liability exposure. You may want to meet with a lawyer to be properly advised.

    7 lawyers agreed with this answer

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  2. Do I need a tax attorney

    Answered over 4 years ago.

    1. James Elliot Pratt
    2. Henry Daniel Lively
    3. Arthur Joseph Obolsky
    3 lawyer answers

    The facts in your question strongly indicate the need to file a Foreign Bank Account Report ("FBAR") using Form TD F 90.22-1 because it appears you may have a financial interest, or signatory or other authority over, a foreign financial account with a value exceeding $10,000. There are severe penalties under the Bank Secrecy Act of Title 31 of the United States Code for not filing this report and further penalties which the government can impose under the Internal Revenue Code for filing false...

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  3. Is there anything I can do?

    Answered over 4 years ago.

    1. James Elliot Pratt
    2. Henry Daniel Lively
    2 lawyer answers

    Given the taxes owed are from when you owned a business, the taxes involved may attach personally to you if they are from sales or payroll taxes. In such cases, it is highly unlikely that you will be able to get the amount erased, but you may be able to get it reduced if your current circumstances and ability to pay warrant a reduction through an offer in compromise. Furthermore, if you cannot qualify for an offer in compromise, then you may be able to get more time to pay through an...

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  4. Currently Not Collectible Status and Tax Liens on Property, do the liens go away when the statutory time expires?

    Answered over 4 years ago.

    1. James Elliot Pratt
    2. Michael Prozan
    3. Ayuban Antonio Tomas
    3 lawyer answers

    The tax lien will generally not be released until after it expires or is no longer enforceable under applicable law AND a specific request for such release is made. Note that the IRS may renew the lien within the applicable statute of limitations, but if it is not renewed then it will expire or not be enforceable under applicable law. Make sure you factor in time for suspension of the statue of limitations if you signed an extension or made any requests for a CDP, installment agreements,...

    1 lawyer agreed with this answer

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  5. Single Non Resident Alien LLC : which federal taxes?

    Answered over 4 years ago.

    1. James Elliot Pratt
    1 lawyer answer

    Assuming you plan on offering your event planning services in the US, then income from such personal services is sourced to where the services are performed/rendered, and as such you would be subject to US income taxation. A treaty may override withholding requirements, so you should check to see whether there is a treaty with your country of citizenship/residency. Please click “thumbs up” if you’ve found this helpful and/or informative. DISCLAIMER & IRS Circular 230 DISCLOSURE:...

    1 lawyer agreed with this answer

  6. X husband wants to claim one of the non-custodial kids on his tax return to pay back owed child support to me.

    Answered over 4 years ago.

    1. Richard Forrest Gould-Saltman
    2. James Elliot Pratt
    2 lawyer answers

    Based on the facts provided, your ex is not entitled to claim a child as a dependent. Cooperation with such tax filing could amount to tax fraud and conspiracy to defraud. You should not cooperate. Please click “thumbs up” if you’ve found this helpful and/or informative. DISCLAIMER & IRS Circular 230 DISCLOSURE: The information in this answer is for general information purposes only. Nothing on this communication should be taken as legal advice for any case or situation. Nothing...

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

    Answered over 4 years ago.

    1. James Elliot Pratt
    2. Eliz C A Johnson
    3. Anne Marie Diggle Rabago
    3 lawyer answers

    For your federal tax return to the IRS, the child must live with the claiming taxpayer for at least half the year to satisfy the residency test which seems to have been met for you this past year. Unless there is a written legal agreement to the contrary, it's doubtful the father will be able to satisfy all the tests required to claim your son as a dependent with mere visitation for future years. For your information, the IRS requires all of the following tests must be met to claim a...

    1 lawyer agreed with this answer

  8. Does S corp bankruptcy get rid of the corporation owed state income taxes?

    Answered over 4 years ago.

    1. James Elliot Pratt
    2. Harley Aaron Feinstein
    3. Steven Alan Fink
    4. Elliott H Stone
    5. Henry Daniel Lively
    5 lawyer answers

    Note that payroll taxes, trust fund taxes, sales taxes are not subject to discharge in bankruptcy, so first you need to determine all applicable taxes that remain outstanding. Assuming there is only income taxes, then generally speaking, state income taxes may be discharged if they are old enough and meet the following conditions: 1. The tax is for a year for which a tax return is last due more than three years prior to the filing of the bankruptcy petition; 2. A tax return was filed...

    1 lawyer agreed with this answer

  9. Can i do my income taxes with my girlfriend?

    Answered over 4 years ago.

    1. Troy Austin Pickard
    2. Pamela Koslyn
    3. James Elliot Pratt
    4. Ayuban Antonio Tomas
    4 lawyer answers

    No, since you are not married, you cannot file jointly with your girlfriend. The five filing statuses are: single, married filing a joint return, married filing a separate return, head of household, and qualifying widow(er) with dependent child. You may qualify for head of household. DISCLAIMER & IRS Circular 230 DISCLOSURE: The information in this answer is for general information purposes only. Nothing on this communication should be taken as legal advice for any case or situation....

    1 lawyer agreed with this answer

  10. Tax debt split in divorce? Is it fraud?

    Answered over 4 years ago.

    1. Henry Daniel Lively
    2. James Elliot Pratt
    3. Vincent Hoyin Kan
    3 lawyer answers

    Regardless of whether your wife's actions were fraudulent, your duty to file is non-delegable. You are held responsible by the Service. If returns were not filed married filing jointly, then innocent spouse relief may not be available unless equity demands. You may have reasonable cause to request abatement of penalties. Also, allocation and/or payment of taxes may be a negotiating point for your divorce settlement. You should meet with a tax advisor to discuss. Please click "thumbs up" if...

    1 lawyer agreed with this answer