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13 votes
Accepted

Making Money and not filing an Income Tax Return

It isn't "illegal" but there are negative consequences to doing so. The civil penalties for failure to file a tax return are a percentage of the tax not paid (5% per month up to a maximum ...
ohwilleke's user avatar
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10 votes
Accepted

When did U.S. tax code limit the personal Capital Loss Deduction to $3000?

The Internal Revenue Code of 1954, all 1024 pages of it, was enacted in the course of a year, basically rebooting and rewriting the tax code, contains §1211 in in 68A Stat. 321: (b) OTHER ...
user6726's user avatar
  • 215k
8 votes

Making Money and not filing an Income Tax Return

If you have prepaid all the taxes you will owe for the year, (i.e. so the IRS owes you money once you file), the following fee schedule applies for filing late: 10 days $0 30 days ...
Harper - Reinstate Monica's user avatar
6 votes

On the Taxability\Nontaxability of Website Donations in the United States

Are the monetary donations collected by the recipient subject to federal taxation according to IRS law? Yes. Usually, money received from an activity from third-parties with no personal relationship ...
ohwilleke's user avatar
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6 votes

When do you need to request a W9?

The key difference is that Best Buy is a corporation, and you are probably thinking of a painter who does not do business as a corporation. (They might be a sole proprietor, for instance.) As far as ...
Nate Eldredge's user avatar
5 votes

Is it legal for a restaurant to assume tips on cash payment?

The difficulty is that tips are, by statute, considered a form of wages rather than a form of self-employment income for the tipped employee for income tax purposes (in contrast, employers don't have ...
ohwilleke's user avatar
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5 votes
Accepted

If someone commits tax evasion, what organization will arrest them?

The IRS Criminal Investigation division is typically going to be the arresting agency, assuming that (1) the offense is treated as a criminal matter; (2) a warrant is actually issued; and (3) anyone ...
bdb484's user avatar
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5 votes
Accepted

Are foreign *assets* (not income), pre-dating moving to the US, taxable?

will these assets be considered as income by the IRS, even though the account money predates her becoming a US person? No. Even if there was no income, is it possible that the person still had to ...
ohwilleke's user avatar
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5 votes

Why can't a cryptocurrency be classified the same way as airline points or store rewards?

It's always amazing to me why some people find it so difficult to understand, just because the word "crypto" is involved. It goes like this: Cryptocurrency is an asset, like any other asset. It's ...
Jack Fleeting's user avatar
5 votes

An employer deducts for taxes but does not pay them to the IRS or social security, is employee liable?

I've litigated cases like these before. The IRS enforcement reaction is swift and severe. Penalties for the employer are heavy and rarely waived. It would be rare for a business like this to stay ...
ohwilleke's user avatar
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3 votes

Are gift cards considered currency or an object?

In the eyes of the IRS, income is income It doesn't matter if that income is in the form of dollars, or gift cards, or red kidney beans, so long as you pay the correct tax on the income the IRS is ...
Dale M's user avatar
  • 205k
3 votes

Will tax evasion/fraud cause a jail in US?

Failing to pay a required tax is both a civil and a criminal offense. In a case like this, the buyer should have known that there was something suspicious going on, and so had a duty to look into ...
David Siegel's user avatar
3 votes

When did U.S. tax code limit the personal Capital Loss Deduction to $3000?

The US federal tax law -- Title 26 USC, aka the Internal Revenue Code or IRC -- contains numerous money amounts, some of which are adjusted for inflation (aka 'cost of living') and some of which are ...
dave_thompson_085's user avatar
2 votes

Making Money and not filing an Income Tax Return

If he has the taxes withheld from his pay and it covers whatever is owed, he really doesn't have to file a return. If he is due a refund, then he would be stupid not to file and get that back. The ...
gumpster6's user avatar
2 votes
Accepted

IRS Auditor neighbor continually asking for favors (including monetary and legal) - is this legal?

There is an Ethics Handbook which IRS employees are required to comply with (turns out one of those duties is to comply with OGE Standards, Treasury Supplemental Standards, Treasury Employee Rules of ...
user6726's user avatar
  • 215k
2 votes

Is it legal for a non-profit to omit the salaries of their deputy director and other lower level directors on Form 990?

For a small nonprofit, I'd assume that those positions would not need to be listed. Under current IRS guidance, the organization must list: "All of its current officers, directors and trustees." The ...
bdb484's user avatar
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2 votes

Is there a fine for no health insurance 2017

The "shared responsibility payment" is a tax and not a fine, at least according to parts of the Supreme Court ruling on the matter (National Federation of Independent Business v. Sebelius, 567 U.S. ...
user6726's user avatar
  • 215k
2 votes
Accepted

Is a nonprofit LLC required to have a Board of Directors?

General Considerations Most non-profits either have self-perpetuating boards of directors, or have members or delegates whose elect a board. Membership in a typical non-profit would be defined to ...
ohwilleke's user avatar
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2 votes

What Is An IRS "future benefit?

Your understanding is basically completely wrong. You pretty much have it backwards. It is easier to explain how the law really is than to try to correct your assumptions. In the U.S., the general ...
ohwilleke's user avatar
  • 206k
2 votes

On the Taxability\Nontaxability of Website Donations in the United States

Your PayPal button may say the word donation, but if the PayPal account is in your name it is nothing else but income. If you declare it and pay the correct taxes you should be fine. If you decide to ...
Neil Meyer's user avatar
  • 4,809
2 votes

Are non-cash payments to the IRS legal?

The IRS is only required to accept legal tender as payment. It is not required to accept payment in kind. This said, if you don't have an ability to pay and don't have sufficient legal tender to make ...
ohwilleke's user avatar
  • 206k
2 votes

Credit card debt past statute of limitations 1099C

the 1099 being issued means it is taxable income despite not being valid debt of any kind being written off. This is the error in the question's logic. The fact that something is reported on a 1099c ...
ohwilleke's user avatar
  • 206k
2 votes

Car Debt and the IRS

australia The lender is paid first Assuming the lender has properly registered a lien under the Personal Property Securities Act then they have first right to the proceeds of the disposal of the ...
Dale M's user avatar
  • 205k
1 vote
Accepted

IRS Form 5472 - What is a related party?

the definition includes further references to some sections? What are these sections, where are they? I would have appreciated a link to the relevant sections at least. Can someone point me to the ...
ohwilleke's user avatar
  • 206k
1 vote

Is it possible for a no-sales clinical or pre-clinical stage or prototype stage biotech. company to meet the IRS definition of "trade or business?"

Is it possible for a no-sales clinical or pre-clinical stage or prototype stage biotech. company to meet the IRS definition of "trade or business?" Yes. Any economic activity carried on ...
ohwilleke's user avatar
  • 206k
1 vote
Accepted

Is it okay to keep track of accounts receivable and accounts payable with cash basis accounting?

Yes The IRS doesn't care what management accounting system you use for your personal use, only that you use the system they prescribe when talking to them. If you look at the accounts of any public ...
Dale M's user avatar
  • 205k
1 vote

An employer deducts for taxes but does not pay them to the IRS or social security, is employee liable?

You didn't mention the country (but say "IRS"), but in every country that I know the inland revenue will come down on this employer like a ton of bricks. (In one country where I actually ...
gnasher729's user avatar
  • 33.4k
1 vote

Filing Requirements for a Federal EIN

You are an unincorporated non-profit organization which must file IRS Form 990 or IRS Form 990-EZ, if you must file any tax form. The thresholds for filing requirements are set forth in the ...
ohwilleke's user avatar
  • 206k
1 vote

How does paying income taxes work in the US?

Sources Of Income For Most People Most people who have income (about 83% of them) earn their income entirely from wages and salaries and from financial investments (e.g. stocks, bonds, mutual funds, ...
ohwilleke's user avatar
  • 206k

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