Today TaxMama® hears from Lara in the TaxQuips Forum who is helping get a partnership out of trouble. As it happens, this seems to be the week for questions from tax pros about the penalties IRS imposes on late-filed partnership tax returns. So let’s talk about those.
Today TaxMama® hears from Richard, who wants to come in from the cold. “I was in rough financial shape for several years and have not filed a tax return in three years. How do I go about squaring up with the IRS now that my finances have improved?”
Today TaxMama® hears from Sue, who overcame a big problem. To make a long story short, Sue suddenly discovered, purely by accident, that she’d only been paying one of the two taxes required by her city for her business. They hit her with about $12,000 worth of back taxes, penalties and interest. Uh oh. What […]
Today TaxMama hears from Mike in the TaxQuips Forum with this question. He says, “My IRA’s expire in 12 months. Can I move them to a Roth without paying taxes or penalties or re-invest in 6 month CD? “
Beginning January 1, 2011, we began enforcing the mandatory e-pay penalty. (California Taxation and Revenue Code 19011.5) Acknowledging high year-end postal volumes, we recognize that there could be delays in our receipt of payments postmarked on or before December 31st, 2010. As a result, we are reviewing accounts where the penalty was assessed and […]
Today TaxMama hears from Joe in the TaxQuips Forum with this question. “How do you calculate the penalty and interest when amending a tax return? I was told by a local chain that does taxes, that only the IRS can calculate these.” http://taxmama.wpengine.com/forum/taxquips/penalties-and-interest/
Courtesy of IRS Some taxpayers may have needed to take an early distribution from their retirement plan last year. The IRS wants individuals who took an early distribution to know that there can be a tax impact to tapping your retirement fund. Here are ten facts about early distributions.
Today TaxMama hears from Mike in North Carolina who just won – nothing. “ I recently got the penalties for a 1999 tax return abated. The IRS claims that any penalties over two years old are not refundable and referred to IRS publication 556. I contend penalties are not overpaid taxes and therefore are refundable. […]
Today we hear from Karen in PA who tells us, “ I just got divorced. I am entitled to $40,000 of hubby’s 401(k). I’m permanently disabled and haven’t worked since 2003. I need this money for necessities, but don’t want to pay early withdrawal or tax penalties. Because I’m disabled and receive a pittance from […]
Today TaxMama hears from TC a MarketWatch reader, who says “It turns out my income has been to high for me to use a Roth IRA contribution for years. But my tax pro didn’t catch this error – and now I am over-contributed for several years and will face a 6% penalty for each year […]
Today TaxMama hears from Patrick in the TaxParlor who has this tale of woe, “In 2001 I withdrew about $70,000 from a 401K plan to open a new restaurant. I had just been laid off from my job and wanted to try something new. I opened a restaurant, and it failed. I ended up owing […]