Tax Question - Taxpayer Needs Help From Taxpayer Advocate

TaxConnections Offline Message Left on 16 Oct 2018, 05:47 PM 

To whom it may concern,

I am sending this letter because I was not informed by the IRS about the wages on my 1040 that did not match the information reported to the IRS back in March of 2018. There was never a letter sent to me about this matter.The only thing I received was a letter stating my identity was being checked for fraud and I had to send information pertaining my identity. I did that and still never heard anything back. According to National Taxpayer Advocate Nina E. Olson praises the IRS for running a generally successful filing season, including reducing the incidence of identity theft, implementing new accelerated Form W 2 reporting requirements, and matching Forms W 2 against tax returns claiming refunds. Ms. Olson says taxpayers who require assistance from the IRS are continuing to face significant challenges obtaining it. I am one of these people and my rights have been violated in the: #1 TAXPAYER BILL OF RIGHTS.

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Tax Question Sept 28

I am selling a business and wanting to reduce capital gains. Wondering if it makes sense to buy a vehicle using a bonus depreciation to reduce capital gains?

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TaxConnections Tax Professionals – Can You Help With This Question Of The Week?

When making a PARTIAL sale of an MLP, can designating recently purchased unit Lots as the ones to be sold reduce income tax?

I have searched and searched but have been unable to find this answer. I am unfamiliar with the accounting for MLP sales, and have a situation with a PARTIAL sale of an MLP, where it was designated the most recently purchased unit Lot be sold, which is documented by the broker’s statement. The K-1 figured the Ordinary Income based on the FIFO method using the first Lots purchased which are about 18 yrs. old. Read More

TaxConnections Tax Professionals – Can You Help With This Question Of The Week?

Is future income from a promissory note all taxable in the year the note was issued?

When we sold our business we signed a promissory note with the buyers for a portion of the purchase price with a 15 year payback at 6% interest. Our accountant told us that we must pay taxes on the full amount of the note even though we will receive the income over 15 years. Seems unfair to have taxation BEFORE compensation. Is this right? Read More

Tax Advisor’s – Your Thoughts On This Question Of The Week?

Could long term capital carryover loss eliminate or reduce depreciation recapture?
Sold during 2017 strip mall in 50% partnership after holding for 15 years.
Currently up against 4/17/2018 dead line with following tax issue.

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Tax Advisor’s – Your Thoughts On This Question Of The Week?

Do US citizens with U.K. personal pensions have to pay tax on the 25% portion that is not taxable in the U.K? The tax treaty suggests two different outcomes. Article 17.2 – yes and article 17.1 a and b – No.

I have seen some are now suggesting as these are periodic payments rather than the US definition of a lump sum then the relevant article is 17 1b and the US savings clause does also not apply and these payments are not taxable.

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Tax Advisor’s – Your Thoughts On This Question Of The Week?

I spoke with the IRS about a Letter 12C and they have my response. Knowing it was an error on Turbotax end, will it take 6-8 weeks to deposit into my account? Can anyone help me?

Every Friday, TaxConnections addresses a question submitted to our Ask Tax Questions Platform. We ask our members to offer their thoughts on this question for the week. We realize you may need more information which you can request in the comments section below, or reach taxpayer privately as a TaxConnections Member. 

Please Make Comments Below To Communicate Your Thoughts


I am early retiring this year and own an LLC company that only makes about 30K a year but much more than the allotted 17K that I have to stay under for this year. My wife helps me with this work but we don’t pay each other a salary, we just put the money in our business account when it comes in and file 1 Schedule C for the business on our yearly tax forms. She owns 1 share in the LLC and I own 100.

How would I structure this so that my income is limited to 17K and the remainder over that goes into her income. Do I need to update the LLC agreement or put each other on the payroll or maybe just me on the payroll? Do I just transfer ownership (all shares) to her? How would you advise me? Read More

A lot of us fancy having our own business. The idea of being your own boss is quite a strong motivating factor. But there is no denying the fact that you have to take care of most of the factors in self-employment. Here are the top 10 tax related question for self-employed individuals along with their answers.

  • Can I avail home office deductions?

Self-employed individuals usually skip out this part with the fear of increasing their chances of being audited. However, more than 50% of businesses run from an office at home. So, you need your bother yourself with any probabilities of audit as long as you are following the ground rules. The space that you use exclusively for your business requirements is only eligible for any write offs.

  • Can I deduct auto expenses?

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Tax Advisor’s – Your Thoughts On This Question Of The Week?

A 62 year old exempt Catholic Priest has paid 44 quarters of social security and medicare payments with the past eleven years of income tax returns. He qualifies for medicare at age 65, reduced social security at age 62 and full social security at age 66.

Can the Catholic Priest stop paying social security and medicare payments on future earnings?

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Tax Advisors- Your Thoughts On This Question Are Appreciated

Taxpayer Question: I invested about 250 hours on a project that did not pan out and this had a huge impact on my bottom line in 2015.

For a consultant who charges an hourly rate and working as a sole proprietor, can I take a loss for work done on a project that was rejected by the client?  Read More