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John P Fazzio III
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John Fazzio’s Answers

1,057 total


  • Can sallie Mae private loans take my state tax refund if they are in default?

    can sallie Mae private loans take my state tax refund if they are in default?

    John’s Answer

    Yes. Sallie Mae will now take your refunds as long as you are in default, and they can garnish your wages up to 10% as well, and they will. They are probably the most aggressive debt collector of any kind; far more aggressive than the IRS.

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  • Can we get a home mortgage if taxes are owed to the IRS?

    My husband and I have been house hunting and unbeknownst to me he owes a total of $139k to the IRS for tax years 2013 and 2014. We got married in 2015. How will we ever get approved for a mortgage even if he goes on a payment plan? Our housing bu...

    John’s Answer

    It is possible, but you may not be able to include him on the mortgage application or perhaps will not be able to use his credit.

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  • How to not pay the motor vehicle tax?

    How can we not pay, or pay partially the motor vehicle tax that each year we have to pay?

    John’s Answer

    This is something that you are just going to have to pay for. The motor vehicle tax, unfortunately, is not optional.

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  • If the 3rd most recent tax return is not filed, in form I-864 part 6 should it be listed N/A or leave it blank?

    My petition/husband didn't file his tax return for 2012 which is the 3rd most recent year. In the form I-864 should he put N/A for the year of 2012 and provide an evidence why he didn't file Or just leave it blank still submitting an evidence? Thanks

    John’s Answer

    I agree with Mr. Flecke's answer. You need to immediately get assistance from a qualified Immigration attorney and/or a Tax Accountant or Tax Attorney. The 2012, 2013 and 2014 returns should be filed right away as it can effect your application. Do not leave anything blank unless advised to so by a qualified Immigration Attorney.

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  • Will the IRS look into eitc fraud from 2011?

    back in 2011, i claimed my brothers kids to get the eitc. i did so knowing they were not legally my dependants as i did not support them nor did they reside with me at all. Now, my brother and his wife have had a falling out and she is threatening...

    John’s Answer

    There was another similar question on this board. I am not sure if they are related. If you claimed children as dependents knowing they were not really dependents -- yes, that is tax fraud -- and you should get an attorney to represent you right away. Whether you will get in trouble when you are reported depends on a lot of factors. It will be best to amend the return immediately, because the consequences are potentially quite serious if the IRS finds you committed fraud. First, there is a 75% fraud penalty that would apply. Second, the debt then becomes non-dischargeable in bankruptcy. Third, you might have potential criminal liability. Fourth, the "fraud" market might show up on your credit report depending on how it is reported. All serious issues. Being proactive here and having legal representation would be wise.

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  • Can i report someone for EITC fraud if it happened over 3 years ago?

    my ex recently told me that they claimed their sisters kids on their taxes to get the EITC. these kids have never resided her and she provided zero financial support for these kids. I know they do not qualify as dependents for the EITC. this took ...

    John’s Answer

    File an Amended Return claiming the same dependents. This will trigger an audit of both returns and the IRS will examine who the dependents should go to, which would be you, because they go to whomever had the children more than 50% of the time and paid more than 50% of their care. You can provide proof in the audit. Whether they go back to other years in the audit or not is an open question. I would not recommend reporting illegal activity or doing a "Whistleblower"-type filing. But, keep this in mind, if she sticks to her guns and does not fix her returns, she may get hit with a fraud penalty.

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  • Taxes

    I purchased a vehicle in Massachusetts in 2005, defaulted in 2007, they repo vehicle in 2007, never received any correspondence from creditor for any collections. In July 2011 we moved out of state to NY. in 2014 I received a notice from IRS sayin...

    John’s Answer

    When they repossessed the vehicle and re-sold it, they got less for it than what was owed. So, whomever financed the vehicle filed a 1099-C with the IRS that they wrote-off the difference, in order to get their deduction for the cancelled debt. You have cancelled debt income under Sec. 108 of the Internal Revenue Code. Because of that, you owe for IRS and NYS. However, if you were insolvent during these times, you can file Form 982, Reduction of Tax Attributes with an Amended Return and you will fall under an exception and the taxes will be reversed. You can also pay IRS/NYS and file a Claim for Refund. This is a fairly routine matter and any NYS Tax Attorney who does Tax Resolution/Tax Controversy work can handle this for you.

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  • How can I get my w2 form from an employer that's not giving it to me because I owe money to the owner.

    I borrowed money from the owner from where I work so he's holding my w2 until I can pay what's owed back. I want to know if this is illegal in NYC?

    John’s Answer

    Yes. You are required to get your W2 by Jan. 31st.

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  • Are they supposed to supply me with a 1099 since they charged off the loan.

    My second mortgage company charged off my loan.

    John’s Answer

    You will receive a 1099, but if you are insolvent, you will not end up owing on your tax return.

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  • Will I be held responsible for any delinquency for either the 1st mortgage or second equity line loan?

    I filed Chapter 7 bankruptcy in 2009. Included in the bankruptcy was my 1st mortgage and a second equity line loan. Both loans were discharged in the bankruptcy and I kept my home and have been paying these loans until June of 2015. Because of ...

    John’s Answer

    You don't owe the debt if discharged in a 7, but the lien on the real property remains, and if you modify, the debt will be reaffirmed.

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