Archive for Tax Question

Tax Professionals – Can You Help College Students On 529 Plan Question?

Tax Question - 529 Plan
My grandparents set up a 529 Plan for me and my two brothers when I was very young. My parents eventually divorced and three 529 Plans were turned over to my father. My mother placed $25,000 each into our 529 Plans when she and my dad divorced.
My father took control of the 529 Plan and now the $25,000 my mother placed into each three sons 529 Plans has been taken out by my father (on all three sons accounts- $75,000 Total).
My father is signing over all the 529 Plan Accounts over to three sons and we are curious who is responsible financially for all the money my father took out? My mother told us taxes are taken out for early withdrawal from our 529 Plans? My mother indicated we will be responsible for paying taxes on the money my father took out. Is this true? Who is responsible for early withdrawal taxes? My dad is in the process of certifying we are now responsible for the 529 Plans. Who will be legally responsible to pay taxes for early withdrawal if these accounts are officially signed over to us?
Please leave comments for college students below:

  

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Tax Professionals – Sales & Use Tax Question

Tax Question - Best Sales & Use Tax Software
What states have made changes this summer due to the Wayfair decision? I believe many changes have occurred recently in states on sales and use reporting and would appreciate any updates.

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Tax Professionals – Have You Ever Encountered A Tax Return Filing That Was Dead-Ended By The IRS?

Tax Question - Tax Return Dead Ended

(This question was recently submitted to TaxConnections by a tax professional who requested input from our community.)

I just spoke to the IRS Taxpayer Advocate line. My taxpayer’s 2016 was “dead-ended” because the return did not include two of the estimated payments on the return. The IRS Rep told me that anytime the payments don’t match, the IRS will dead-end the return and not post it to the system. The IRS sent a CP12 letter (stating don’t file, don’t amend, just respond) I responded.

Now we are getting CP59 letters stating the return has not been filed. THE CORRECT PHRASE IS NOT POSTED. I can’t refill electronically because I already have a SUBMISSION ID NUMBER.

Can this info be accurate? That means every taxpayer over 65 will have their tax return dead-ended because old people can’t remember what and when they paid stuff. Can you please clarify this policy? I was told it has been in effect for 3 years already.

This is the first time I have ever heard of this? Can you tell me if this has ever happened to you when filing a tax return?

Please comment below if you have any familiarity with this issue.

 

 

 

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Tax Professionals – Tax Question On Foreign Loan

I am a U.S. corporate business owner and want to apply for a foreign loan in Switzerland for a subsidiary we have located in Europe. Can you provide me any advice or insight on this matter? We are a 30M company.

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TaxConnections provides all our members the media credit for answering tax questions. You deserve the credit so we simply built software that turns the spotlight back on you!

Your comments are most appreciated below.

 

 

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Tax Professionals – Can You Answer This Tax Question?

Tax Question , TaxConnections, Sales & Use Tax
A C corporation in California who sells online to customers around the world, are we required to pay sales tax outside of California and VAT internationally? What is the best way to go about this for a small yet growing company? We are also thinking about moving our online business to another state? What would you recommend we do?

TaxConnections provides an option for tax professionals to comment below on our Tax Blog; or if you are a tax professional  and want to have your tax question/tax answer rise higher on the search engines and lead back to you, please join us as a TaxConnections Member .

A TaxConnections Membership enables you to answer the tax question and coupled with your TaxConnections Professional Profile works to boost you and your answer higher on the search engines. We developed proprietary marketing tax expertise technology to boost our Tax Professional Members to the top of the search engines over time. TaxConnections is the site giving all our members the media credit for answering tax questions and we lead visitors right back to you. You deserve the credit so we simply built software that turns the spotlight back on you!

 

 

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