The Tax Questions Blog

Posts Tagged ‘income’

Question: Taxes or Bankruptcy first.?

I am broke, unemployed, and have not payed taxes for years. I have been using a Sub-chapter-S corporation to receive money for IT services since about 2005. I am currently enrolled in college so that I can maybe get my life on track. I receive 5-10 collection notices a week and have been ducking the repo guy on my car for over a year now.

Things just got bad, then worse, now nightmare. If I have any hope of emerging from college with a fresh start, what do I do? Bankruptcy costs money, tax attorneys cost money. I dont even have copies of the bank records and switch banks so often I dont even know who to call to get those records. I also heard that if I go through bankruptcy I will no longer be able to get any money for college.

Who do I call first? Or do I just fake my own death, seriously, its that bad.

Answer: Turn the car in:
The bankruptcy court has a payment plan that you can pay for filing bankruptcy within 90 days of your case. File all tax returns as soon as possible to avoid further penalties. File the bankruptcy yourself. The forms are available online and file your own tax returns. The Subchapter S corporation income is a pass through entity income that is reported on your regular tax return. Go to www.taxact.com and prepare your own tax return. You should also prepare an 1120-S for the subchapter S corporation. I would personally switch over to an LLC rather than a Subchapter S. But that is your funeral.

Makers, Takers And Wealth Transfer In The Modern Welfare State

Democratic politics is a sordid, mob-driven business.  The great mass of mankind is neither smart nor dumb, good nor bad, but subject to influence.  When it thinks it can vote itself someone else’s money, it rushes to the ballot box as though to an overturned beer truck.Over the century and a half since the invention of modern, social welfare democracy, politicians have learned how to game the ...

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Question: Isn't income tax illegal unless voluntary?

I am canadian and this is a candian economy based question. Correct me if im wrong but wasn't income tax implemented to aid the troops during the war? well if this is true then why are we still paying this tax? I also thought it was illegal for the federal government to charge income tax since it is provincial territory? I also thought that income tax was purely voluntary.. when did these things change and who gave the go ahead on this?

Answer: thank your central bank...

Michael McCann: Prosecution's error likely to get Clemens off the hook

If you ever wanted to see the courtroom equivalent of the ball going under the legs of Bill Buckner in the 1986 World Series, you saw it today. U.S. District Judge Reggie Walton declared a mistrial in the government's expensive case against legendary pitcher Roger Clemens, who allegedly lied before Congress in February 2008 about using steroids and illegal performance enhancers. The mistrial ...

Former IRS Agent and Ron Paul say Federal Income tax is illegal

Question: Florida Corporation ??????????????????

I'm looking to start a business in orlando, orange county, florida. The internet is so confusing sometimes that i revert to yahoo answers! So far i have created a corporation in florida and received my EIN number from the IRS... what now? Do i need to pay for the Orange County Business Tax License? i heard that was just for if you lease space other than working from home... or is that what people mean when they say you need to get your business license? Florida has a ton of required Licenses for different fields of what you do and fortunatly my field does not require any extra licensing other than a business license.. also, i am the only employee if that matters...

So my questions are...
do i need to pay for the Orange county business tax form?
should i have done LLC or Sole Proprietorship?
just overall knowledge of what to do is needed here!!!

Thank you guys so much for any and all answers!!!!!!!!!!!!!!

Answer: First of all, a good place to start might be the Florida Secretary of State's corporate FAQ. You may find some of your answers there.

Additionally, there are many different types of business licenses and permits you may need -- a "business license" is a general term for any number of requirements -- at your state, county, and city level. You could contact each of these levels of government for this information, but since you seem to be a little overwhelmed, it may be beneficial to you to simply have a corporate attorney or a third-party service figure out all of your requirements and obtain the permits for you so you know you have what you need.

It's impossible to tell you what type of business you "should" have formed, because this decision should be based on your specific needs (each entity type has its own list of pros and cons in areas like taxation and liability) -- but if you do decide an LLC would benefit you, there are conversion forms that you can file to change your corporation to an LLC. (I'm not sure if you'd be able to convert your corporation to a sole proprietorship, but you can always cancel and re-file as a sole prop. if you decide it would be best; keep in mind that a sole proprietor affords you no personal liability protection.)

I hope this helps at least get you on the right track! Good luck!!

Fresh Start Tax: How to Get an IRS Tax Levy, Wage Garnishment or Notice of Intent to Levy Stopped

FORT LAUDERDALE, FL--(Marketwire - Jul 5, 2011) - Being comprised of Board Certified Tax Attorneys, CPAs and Former IRS Agents/Managers/Instructors, we have released thousands of Federal Tax Levies and Wage Garnishments filed by the Internal Revenue Service. The IRS files approximately 4 million tax levies a year including levies on social security.

How to Get a Tax ID on the IRS Website - form ss4

Question: Does my income affect my FAFSA?

My parent's taxable income is only $5,000.00
My income is $28,000.00
I'm 19 years old and wanting to go back to school. I'm still considered a dependent student.

Here's my questions...

I filled out a FAFSA application when I wasn't making money and my EFC (estimated family contribution) was 0. Technically my EFC hasn't changed. Is the FAFSA completely based on my EFC or will income decide the amount I can get for grants, loans, etc??? Or does my income somehow effect my Estimated Family Contribution?

Thanks for the help!

Answer: Your income decides your EFC.

The reason why it hasn't changed is because you are still considered a low income family since your parents aren't making money, and your income is still below poverty level when you add your family members.

However, once you turn 24, if you don't have any children or dependents, with 28k, your efc probably going to be up in the 8 or 9 thousands and you won't qualify for pell.

It's Never Too Early To Start Saving

The earlier you begin investing, the more stable your future will be in the short and long term.

Question: if a person having pan No.xxxxx receives one letter from IT department ?

if a person receives a self assessement letter from IT statting you have to pay this much tax to the dept. ? what is the way to avoid this(because he is a worker only ?he applied pan No. only for getting loan from bank.Is he have to give a decleration for the same ? or other wise what is the actual procedure?how we will come to know how they have calculated his taxable incme?

Answer: u cannot avoid this letter. u have to reply to it. If u had earned income liable to to taxed during a particular year and have not paid tax on this income , now u have to pay it with fines and penalties. But if your income was less than the exeption limits, then u got to prove that u did not have any income chargeable to tax.Can be more specific about it when I see the letter u actually received from the Income tax department.

Social Security and Medicare: What's the real cost?

Social Security and Medicare are often brought up during debates about 'unfunded liabilities.' See question No. 2 for an explanation of the long-term cost of Social Security and Medicare.

How to File Your Taxes - Taxable Income and Tax Rate step 6 of 10