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Tax Office Answers
Tax Office Answers is here to help. Ask your question. Someone has the answer.
Tax Office Answers is here to help. Ask your question. Someone has the answer.


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Q) How can I get a copy of correspondence sent to me by the IRS concerning paid off taxes.

A) You can call the IRS and request another copy of your pay off balance letter be sent to you. Call the IRS at 1-800-829-1040

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Q) I have a question on the tax side of splitting up house proceeds from basically an inheritance (actually from property gifted to 4 siblings by the last wife of the father of those siblings after his death).

Basically, this “inheritance” to 4 siblings involved preparing the property for sale, and really only 1 of the siblings could afford to pay that cost up front and so will need to be reimbursed for that. The question is when this reimbursement should occur: (A) After the sale in which all siblings get the same percentage, or (B) At the time of Sale.

I think a lot of it is basically what can be deducted and when (and how to make sure it is clear with the IRS, e.g. what forms may be needed and how to prove such deductions), and basically to see if the situation is or is not how I describe below.

For calculating multiplicities sake: if the house sells for $120,000 and if total up-front expenses end up $20,000…

Option A

Split up proceeds evenly

Amount received Deductions Amount taxed
$30,000 – $20,000 $10,000 Sibling 1
$30,000 $30,000 Sibling 2
$30,000 $30,000 Sibling 3
$30,000 $30,000 Sibling 4

Or would this actually be more like this:
Amount received Amount taxed Deductions
$30,000 $30,000 Sibling 1 – $20,000
$30,000 $30,000 Sibling 2
$30,000 $30,000 Sibling 3
$30,000 $30,000 Sibling 4

In addition, after these numbers Sibling 1 is paid back that $20,000

Option B

Split up proceeds including deductions paid to Sibling 1 up-front.

Amount received Deductions Amount taxed
$45,000 – $20,000 $25,000 Sibling 1
$25,000 $25,000 Sibling 2
$25,000 $25,000 Sibling 3
$25,000 $25,000 Sibling 4

A) Please refer your questions to a Real Estate closing attorney.
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Q) How can I get a ITIN ?

A) According to the IRS – If you do not have a SSN and are not eligible to obtain a SSN, but you have a requirement to furnish a federal tax identification number or file a federal income tax return, you must apply for an ITIN.

If you have an application for a SSN pending, do not file Form W-7. Complete Form W-7 only if the Social Security Administration (SSA) notifies you that a SSN cannot be issued.

To obtain a SSN, see Form SS-5, Application for a Social Security Card. To get Form SS-5 or to find out if you are eligible to obtain a SSN, go to Social Security Administration or contact a SSA office. By law, an alien individual cannot have both an ITIN and a SSN.

IRS processes returns showing SSNs or ITINs in the blanks where tax forms request SSNs. IRS no longer accepts, and will not process, forms showing “SSA”, 205c”, “applied for”, “NRA”,& blanks, etc.

How do I apply for an ITIN?
Use the latest revision of Form W-7, Application for IRS Individual Taxpayer Identification Number to apply. Attach a valid federal income tax return, unless you qualify for an exception, and include your original proof of identity or copies certified by issuing agency and foreign status documents.

Because you are filing your tax return as an attachment to your ITIN application, you should not mail your return to the address listed in the Form 1040, 1040A or 1040EZ instructions. Instead, send your return, Form W-7 and proof of identity and foreign status documents to:

Internal Revenue Service
Austin Service Center
ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342
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Q) some one is using my ss# to get state of provider thou there employer,i got a tax form 1095-B in the mail.this came out phoenix az. i do not have ahcccs i have my oun inc.AARP AND MEDCARE hear is the employers ID#8*******1. is a legle tax is address 8*****1 e je*****n st phoenix 8****4

A) According to the Social Security Administration – If you think someone is using your number, there are several actions you can take. Note that we can only resolve Social Security number reporting problems on our own records.

Review your Social Security earnings record

Review the earnings posted to your record on your Social Security Statement. To get your online Statement, log into your personal my Social Security account and check your account. If you see any inconsistencies, contact the Social Security Administration. We consider identity theft one of our major challenges so we have joined in government-wide efforts to prevent Social Security number misuse.

Visit to report identity theft and get a recovery plan guides you through each step of the recovery process. It’s a one-stop resource managed by the Federal Trade Commission, the nation’s consumer protection agency.

Contact the Internal Revenue Service (IRS) for issues involving taxes.
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Q) Hi my name is amber r****s an i have received a letter in the mail regarding my amended tax return that it was issue out on this month but i still have not receive my check an my phone is 614******793

A) According to the IRS you can check status of your refund Within 24 hours after IRS received your e-filed tax return; or
4 weeks after mailing your paper return. When the IRS processes your tax return and approves your refund, you can see your actual personalized refund date. Even though the IRS issues most refunds in less than 21 days after we receive your tax return, it’s possible your tax return may require additional review and take longer.
You should only call if it has been:
21 days or more since you filed electronically;
More than 6 weeks since you mailed your paper return; or
The Where’s My Refund? tool directs you to contact us.

You can also check your refund status on the IRS website
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Q) I want to know why I have not yet received my 2014 refund.I need to speak with someone concerning my 2014 tax return i have not yet received it. I ordered transcript from 2014 and 2015. The information on each 2014-2015 transcript are Identical but have different tracking numbers. I do not understand how my 2014 transcript have the same information as my 2015. I have a copy of my E file from 2014. none of the information on the e-file is entered on my December 2014 transcript. would like to make an appointment with someone concerning this matter. Tank you so much for you time.

A) According to the IRS – The IRS tries to process electronic returns within 21 days, but during peak season it can sometimes take longer. If you filed a paper return it can take 6 weeks to process a tax refund, so you will need to be patient.

If you want to know when you can expect your Federal tax refund, you can check the status of your refund using the “Where’s My Refund?” tool on the website. DO NOT attempt to check your refund using any other service. The “Where’s My Refund?” tool on the IRS website is the only tool that can safely and accurately check the status of your refund for you.
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Q) I filed an E-1040 with TaxAct. All the figures and computations were correct, so the IRS should have no trouble accepting the filed forms. I did, however, forget to submit Form 8938, which merely indicates how much money I have in a foreign bank. I have the 8938 form, so I just need to know where to send it and whether adding my social security number is sufficient to link it to my 1040 for 2015.

A) According to the IRS you should not send Form 8938 to the IRS unless it is attached to an annual return or an amended return. You will need to file an amendment to your tax return and add form 8938.
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According to the IRS – April 15 is the annual deadline for most people to file their federal income tax return and pay any taxes they owe. By law, the IRS may assess penalties to taxpayers for both failing to file a tax return and for failing to pay taxes they owe by the deadline.

Here are eight important points about penalties for filing or paying late.

A failure-to-file penalty may apply if you did not file by the tax filing deadline. A failure-to-pay penalty may apply if you did not pay all of the taxes you owe by the tax filing deadline.
The failure-to-file penalty is generally more than the failure-to-pay penalty. You should file your tax return on time each year, even if you’re not able to pay all the taxes you owe by the due date. You can reduce additional interest and penalties by paying as much as you can with your tax return. You should explore other payment options such as getting a loan or making an installment agreement to make payments. The IRS will work with you.
The penalty for filing late is normally 5 percent of the unpaid taxes for each month or part of a month that a tax return is late. That penalty starts accruing the day after the tax filing due date and will not exceed 25 percent of your unpaid taxes.
If you do not pay your taxes by the tax deadline, you normally will face a failure-to-pay penalty of ½ of 1 percent of your unpaid taxes. That penalty applies for each month or part of a month after the due date and starts accruing the day after the tax-filing due date.
If you timely requested an extension of time to file your individual income tax return and paid at least 90 percent of the taxes you owe with your request, you may not face a failure-to-pay penalty. However, you must pay any remaining balance by the extended due date.
If both the 5 percent failure-to-file penalty and the ½ percent failure-to-pay penalties apply in any month, the maximum penalty that you’ll pay for both is 5 percent.
If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.
You will not have to pay a late-filing or late-payment penalty if you can show reasonable cause for not filing or paying on time.
Note: The IRS recently announced special penalty relief to many taxpayers who requested an extension of time to file their 2012 federal income tax returns and some victims of the recent severe storms in parts of the South and Midwest. For details about these relief provisions, see IRS news releases IR-2013-31 and IR-2013-42. The IRS has also provided individual tax filing and payment extensions to those affected by the Boston explosions tragedy. See IR-2013-43 for more information.
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Q) I have seven Children can i claim them all on my taxes

A) There is no maximum amount of dependents you’re allowed to claim on your tax return. You can claim all dependents who are qualified child dependents according to IRS rules. Consider it a token of appreciation for supporting the ever-increasing costs of diapers, astronomical college tuition fees and for simply putting food on the table each night.

What qualifies a child as my dependent?
You may see this question to have a simple answer if you are married parents filing a joint return. However, for single parents, married parents who file separately or other relatives, the answer is not as clear.

A qualifying child dependent has slightly different requirements than a qualifying relative dependent does. In order to be considered a qualifying child dependent, they must meet all of the following requirements:

The child must be a U.S. citizen, national, resident or a resident of Mexico or Canada.
The child cannot be claimed by someone else or themselves if they are also taking the personal exemption.
If the child is filing a tax return, they cannot be claiming a dependent.
The child cannot be filing a joint tax return.
The child must be your son, daughter, stepchild, brother, sister, eligible foster child, half sibling, stepsibling, or adopted child. He/she can also qualify if they are an offspring of any of the above.
The child must have lived with you for more than half of the year.
The child must be under 19 years old. If the child is a full-time student, they must be under 24 years old. There is no age limit if the child is totally and permanently disabled.
You must have provided more than half of the child’s annual financial support.
How much is each dependent child worth on my tax return?
Each child claimed as a dependent reduces your taxable income by $4,000. Contrary to popular belief, this does not mean that $4,000 will be added to your refund or directly deducted from your tax bill. It means that the income amount that you are being taxed on is reduced which ultimately reduces your tax bill (or increases your refund amount).

Although claiming a dependent or two on your tax return opens the door to qualifying for the Child Tax Credit, it does not guarantee it.
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Q) Can I pay my state taxes that I owe at the IRS office or a state office and not mail it in or go online. I want to pay it at an office in person if able is there one located in ft. Smith,AR or close to that area.

A) According to the IRS: If you owe taxes but can’t pay the full amount by the April 18 deadline you should still file your return on time and pay as much as you can to avoid penalties and interest. You should also contact the IRS to ask about alternative payment options. Here are three alternative payment options you may want to consider:
Additional Time to Pay Based on your circumstances, you may be granted a short additional time to pay your tax in full. A brief additional amount of time to pay can be requested through the Online Payment Agreement application or by calling 800-829-1040. Taxpayers who request and are granted an additional 60 to 120 days to pay the tax in full generally will pay less in penalties and interest than if the debt were repaid through an installment agreement over a greater period of time.
Installment Agreement You can apply for an IRS installment agreement using the Web-based Online Payment Agreement application on This Web-based application allows taxpayers who owe $25,000 or less in combined tax, penalties and interest to self-qualify, apply for, and receive immediate notification of approval. You can also request an installment agreement before your current tax liabilities are actually assessed by using OPA. The OPA option provides you with a simple and convenient way to establish an installment agreement and eliminates the need for personal interaction with IRS and reduces paper processing. You may also complete and submit a Form 9465, Installment Agreement Request, make your request in writing, or call 1-800-829-1040 to make your request. For balances over $25,000, you are required to complete a financial statement to determine the monthly payment amount for an installment plan. For more complete information see Tax Topic 202, Tax Payment Options on the website.
Pay by Credit or Debit Card To pay your Federal taxes by credit or debit card, you can use all major cards (American Express, Discover, MasterCard, or Visa). For information on paying your taxes electronically, including by credit or debit card, go to Electronic Payment Options Home Page and contact one of the service providers at its telephone number or Web site listed below and follow the instructions. There is no IRS fee for credit or debit card payments, but the processing companies charge a convenience fee or flat fee. If you are paying by credit card, the service providers charge a convenience fee based on the amount you are paying. If you are paying by debit card, the service providers charge a flat fee of $3.89 to $3.95. Do not add the convenience fee or flat fee to your tax payment.
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