Moving Costs

Can I claim a moving expense for moving out of the US to Japan ?

Asked Wednesday, December 20, 2000 by an anonymous user

CPA Answer:

Yes. A moving expense deduction is permitted in connection with a move outside the US or its possessions. An additional deduction is allowed for foreign moves for reasonable expenses of moving household goods and personal effects to and from storage and of storing them for part or all of the time during which the new place of work abroad continues to be a taxpayers principal place of work.
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Taxes - My Tax Return

Are there any tax credits or refunds related to reparations for slavery ?

Asked Tuesday, December 19, 2000 by an anonymous user

CPA Answer:

There are no provisions in the tax law for tax credits or refunds related to reparations for slavery. The IRS is cautioning taxpayers of illegal schemes being offered to the public by rip off artists. You should report these people to the IRS.
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Taxes - My Tax Return

Is there a special power of attorney form needed for my tax preparer to answer questions by the IRS ?

Asked Monday, December 18, 2000 by an anonymous user

CPA Answer:

In the current year a checkbox on IRS Form 1040 page 2 has been added in place of the special power of attorney form. This will authorize your tax preparer to answer IRS question notices on math errors or missing information.
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Taxes - My Tax Return

Alimony - minimum payment period

Asked Friday, December 15, 2000 by an anonymous user

CPA Answer:

There is no minimum payment period.
Recapture of alimony amounts may apply where payments decrease by more than $15,000 within the first three years of the divorce.
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Taxes - My Tax Return

Alimony - third year non-payment after divorce - recapture rule

Asked Friday, December 15, 2000 by an anonymous user

CPA Answer:

The deductible alimony payments made in the first year or second year may have to be recaptured as income in the third year where the alimony payments within the first 3 years decrease by more than $15,000.
Payments made in the second after the separation year are recaptured if the payments exceed the payments in the third post separation year by more than $15,000.
Payments made in the first after the seperation year are recaptured as income if they exceed the "average" payments made in the second post separation year and the third post seperation year by more than $15,000.
The recaptured amount is reported on IRS Form 1040 on the line Alimony received with a notation Alimony recapture with the payee spouses social security number.
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Taxes - My Tax Return

How do I complain about the IRS actions in relation to my small business ?

Asked Monday, December 11, 2000 by an anonymous user

CPA Answer:

Talk to Taxpayer Advocate. The Taxpayer Advocate Service is an independent organization within the IRS. They help taxpayers whose problems with the IRS are causing financial difficulties; who have tried but have not been able to resolve their problems with the IRS; and those who believe an IRS system or procedure is not working as it should.. You can call your local advocate, whose number is in your phone book, or via the Internet at Taxpayer Advocate Service – at www.irs.gov/advocate or You can also call 1-877-777-4778 . Call or write to the IRS. Keep records of all of your attempts to contact an agent. Fill out IRS Form 911 if you cannot resolve conflict or find resolution through an IRS agent. File a complaint with the Inspector General if you need to report cases of fraud or corruption by an IRS employee.
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Taxes - My Tax Return

How do I report misconduct and abuse by a IRS employee ?

Asked Monday, December 11, 2000 by an anonymous user

CPA Answer:

Call or write to the IRS. Keep records of all of your attempts to contact an agent. Be polite and specific when calling, and refrain from becoming incoherent if you are feeling anxiety. Fill out IRS Form 911 if you cannot resolve conflict or find resolution through an IRS agent. Write your complaints in this form using blue or black ink. Be specific and complete all information requested. File a complaint with the Inspector General if you need to report cases of fraud or corruption by an IRS employee or contractor. Do not file complaints about your personal tax issues with this agency. Give details and have evidence of the violation or illegal activity in the complaint.
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Taxes - My Tax Return

What is the phone number to call for IRS Tax Publications ?

Asked Monday, December 11, 2000 by an anonymous user

CPA Answer:

Forms and publications can be requested by calling 1-800-829-3676.
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Taxes - My Tax Return

Will the IRS ever waive penalties ?

Asked Monday, December 11, 2000 by an anonymous user

CPA Answer:

The IRS will waive penalties when allowed by law if you can show that you acted reasonably and in good faith or relied on the incorrect advice of an IRS employee. The IRS will also waive interest that is the result of certain errors or delays caused by an IRS employee.
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