Seattle, Wash — Today Avvo, Inc., the web’s largest expert-only health and legal Q&A forum and directory (http://www.avvo.com/), announced a 205% increase in tax-related questions submitted to the Q&A forum between January and March, compared to the previous six months. Looking back at the past three years, the number of questions during this time period has increased on average by 182%.
Of all the thousands of tax-related questions asked and answered on the site, the most common involve:
- What is the statute of limitations of sending a 1099-C?
- I am planning a strategic default on my under-water home. Will the IRS may tax me with a 1099? Will a form 982 protect me?
- When is a form 1099-c (forgiveness of debt) not taxed?
- I got married this past year and my spouse never filed a 1099 from ten years ago, Can IRS keep my tax money this year?
- Can I file taxes without 1099?
- Should we divorce for tax savings?
- What are the tax exemptions for children in divorce?
- Can I file head of household if going through a divorce?How will retirement income be taxed after divorce?
- With 50/50 shared custody, and no divorce agreement, who gets to claim our child when filing taxes?
- I had an investment home go into foreclosure in November. I just received a 1099 tax form. How can I file for insolvency?
- Can we receive a forgiveness of indebtedness income from our home foreclosure?
- If my second home goes into foreclosure, will I still be responsible for the property taxes?
- What are the tax consequences in the state of CA regarding short sale or deed in lieu of foreclosure?
- For tax purposes, how do I accurately determine gain or loss due to ‘sale’ via non-judicial foreclosure?
Tax liens and withdrawal of liens
- Does the IRS Revenue Officer have the power to remove an old tax lien on real estate upon a showing that it was erroneous?
- What is the statute of limitations on a State Income Tax public record lien that credit bureaus can keep reporting?
- How does someone remove a federal tax lien that was improperly imposed?
- Can the IRS put a lien on social security payments?
- I have an IRS lien and was in a car accident and my car was totaled. Will the IRS take my settlement money on the car?
- Will converting my business from S-corp to a C-corp provide tax benefits?
- When is Schedule K-1 due to partners?
- My small s corp business has been closed. The business owes a large amount of payroll taxes to the IRS. Am I still liable?
- Can the IRS garnish wages from the spouse of a Small business owner?
- When an S-Corp dissolves, are owners or executives then liable for back-taxes?
“One of the major problems I see in my practice is the lack of understanding that people have regarding how to handle a form 1099-C which is used to report income from the cancellation of debts,” said E. Martin Davidoff, CPA, Esq. “If a debt is forgiven, it is not necessarily taxable, but the form needs to be dealt with and not ignored. To determine whether or not the debt is taxable, one should see a competent tax professional or review IRS publication 4681 (http://www.irs.gov/pub/irs-pdf/p4681.pdf). Generally, if the cancellation of debt is due to bankruptcy, cancellation on certain residential mortgages, or you remain insolvent after the cancellation, it will not be taxed. Use form 982, as indicated by publication 4681, to report such exclusions.”
“File as soon as you can, consider getting expert help to do so and be aware that the IRS is more aggressive in their audits this year,” said Dan Lively, tax attorney with The Lively Law Group. “For business owners in particular, make sure all 1099’s are prepared, keep documentation for all items of income and expense and keep all sales and payroll tax filings current and paid.”
Areas of the United States asking the most tax questions:
- Los Angeles, CA
- Seattle, WA
- New York, NY
- Houston, TX
- San Francisco, CA
- Chicago, IL
- San Diego, CA
- Phoenix, AZ
- Dallas, TX
- Atlanta, GA
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