The Tax Questions Blog

Archive for March, 2011

Cupboard is Baird for new Treasurer

BARRY O'Farrell has moved to cut the legs off a future leadership rival by stripping his ambitious new Treasurer Mike Baird's department of half its powers.

Joe Hockey Address to the Liberal Party Federal Council

Question: I am a North carolina resident, but have done some contarct work in Maryland. Do i have to pay MD Taxes??

I am trying to file my taxes online myself using taxcut. My taxable income is automatically rolled over when trying to do my NC state taxes. But, i don't think i should pay NC tax on the money i earned in MD...help Please...

Answer: You're abosulutely right.

You have to do a part-year resident return for both states. You must show the money you earned while you were a resident in those states. An allocation has to be made.

Please seek out a professional to do it for you. A tax practitioner or CPA.

TC is not a good program. It has many flaws. Try using TT next year, you wont regret it.

ARMOUR Residential REIT, Inc. to Transfer Listing of Common Stock to New York Stock Exchange

VERO BEACH, Fla. -- ARMOUR Residential REIT, Inc. announced today that it has received authorization to transfer the listing of its common stock from the NYSE Amex to the New York Stock Exchange.

iOwnTheWorld is NUMBER ONE 1 / iOwnTheWorld.com song

Question: Reporting a business that lies about the taxes & has employees off the books?

I heard my old employer bragg9ing that he makes $100+ a year but only pays taxes on $80,000. How can I report him? The IRS was coming there allk the time, and the department of finance, yet I do not think they know about this. He also has all his employees working off the books, including me, but he lies when he hires everyone and says that his "accountant" is working something out, then never mentions it again. I quit because I was being sexually harrassed by him and verbally abused, what should I do???

PS this is a credit repair company, owned by one guy.

Answer: Call the IRS tell them what you know as a FACT, (if anything) and what you suspect. Be clear with them if you only know these things as hearsay. If you do this, remember that you may eventually be called as a witness in court, but that should be OK if YOU did nothing wrong, fair is fair.

Fiesta Bowl report: Lavish expenses

Fiesta Bowl investigators have found evidence of potentially illegal employee conduct and spending irregularities that could jeopardize its non-profit status and prestigious role in college football's national championship series.

Surviving an IRS Tax Audit : IRS Publication 1

Question: how do i determine the taxable amount on 1040a line 12a and 12b?

Answer: You have received a 1099-R from one or more retirement plans. The short of it is that you will see the gross in Box 1 and the taxable amount in Box 3. Very nearly always, there will be a number within Box 2. Usually it will be "7". That means that your IRA, pension or annuity withdrawal is fully taxable, unfortunately. Very rarely is there an exceptoin. If there's a "2", you can look in to it, but nearly always it is taxable. The 1099-R will show the taxable amount about 2/3 of the time. Usually, there will be no doubt. You should call the toll-free number if there is. Rarely, you will not be able to get an answer, so you could call the IRS number at 1-829-3676 or 1-800-829-1954.

The nitty gritty is that the taxable amount is usually 100% of the amount of the pension or annuity. The very nature of the beast means you will have to pay tax when you receive a 1099-R. You may get Federal income tax withheld if you choose. I would send in estimated tax: a little in April and June, then a little more in Sept and enough in Dec to make I'm covered and still have some money for the bills during the year.

Irrevocability rule on the option to carry over excess income tax

Under Section 76 of the Tax Code, a taxable corporation whose total quarterly tax payments during the taxable year is not equal to the total tax due on the entire taxable income of that year, shall (1) pay the balance of tax still due, (2) carry-over the excess credit, or (3) be credited or refunded with the excess amount paid, as the case maybe.

Memphis attorney Vincent Perryman discusses Estate Planning on legalease with Bill Jones part 2

Question: Is the tax law constitutional since its too complicated for the common man to understand?

Answer: It's very complicated, and many of the loopholes are there for political purposes. I wonder if a tax attorney could explain it to the common man so that he could understand it. If not, then the lawyer doesn't understand it either. Then we're all in trouble.

Dems: Constitutional amendment needed to protect K-12 funding

LANSING — Angered by the governor’s plan to divert nearly $900 million from a fund that helps K-12 schools, Michigan Democrats said Monday that voters should approve a constitutional amendment to ensure the fund isn’t tapped for other educational uses.

Home Ownership in America/Are Property Taxes Constitutional?