0
You really need to consult a tax expert and check your particular situation. Certain types of lawsuit settlements are taxable income, and others are not. Without knowing the specifics of the settlement, I'm not sure anyone can give you an accurate answer.
ANSWER: Before consulting a "tax expert" on any tax liability you should know for yourself whether you are liable or not. A "tax expert" has no legal authority to assess your tax liability and is certainly not doing so when you walk into his office. The minute you approach any "tax expert" they are operating under the reasonable assumption that you are liable for a tax and subject to the tax laws of which they claim expertise. If you are not liable it is not their responsibility to know that, that is your responsibility. If you are not liable for a tax nor subject to the jurisdiction of a tax collector who claims you owe a tax then a "tax expert" can not help you. It is not within their field of expertise to help non taxpayers and all they can really do is help taxpayers become tax compliant. If you are a non taxpayer who's been harassed by a tax collector it is unfortunate that there are no "non tax experts" out their, unless of course, you count all the internet sites who claim they can help you. The taxation and revenue laws are a complex code written precisely so it can not be understood and it doesn't take much effort in a court of law to prove to a jury that these laws can not be understood. If no one actually understands these laws it's not certain who is actually subject to them and made liable for a tax. One has to be able to understand the law he has been made subject to before he actually is subject to it. Forget the experts, educate yourself and save yourself more money than you would have ever imagined.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
Will the IRS take your workman compensation settlement through the courts you have a payment plan with them monthly?
It stands to reason that if you have an agreement settlement worked out with the IRS, and you are current in paying the obligation, then they wouldn't seize your income. HOWEVER, that being said, the IRS can pretty much do what they want - this question would better be answered by speaking with and IRS representative on their hotline, or by consulting with an attorney who specializes in tax matters.
What are the 3 legal ways in which accountants are able to report different incomes to shareholders and to the IRS?
That sounds quite illegal to me.
When a person receives an auto insurance settlement payment is the insurance company sending any notice of that payment to the IRS?
Payments of this kind are not taxable at all. This is considered as compensation for a loss of some kind be it injury or property.
How could an attorney help a person with an IRS tax settlement?
An attorney can help with person with an IRS tax settlement by contacting the IRS, and negotiating the settlement amount. Attorneys who practice in this area of law know the legalities and are better equipped to navigate the IRS tax laws.
Do you have report quit claim to the IRS if not put in a trust?
Generally, the person who is making a gift of the property will pay the IRS gift tax on the item. In some cases, the recipient may agree to make the tax payment.
Do you report insurance claims to the IRS?
As a rule of thumb you should never report anything to the IRS
Do you have to declare what you save to the IRS if you go through debt settlement?
Yes, you have to declare what you save to the IRS if you go through debt settlement. You can read more information at www.debtfreedestiny.com/debt-settlement/debt-settlement-and-income-taxes
What are a few important things about IRS tax settlements?
The first thing to know is that the IRS will settle a debt for less than the actual amount owed. This is called an OIC or Offer In Compromise. In order to gain this settlement one must file IRS Form 656 along with a $150 nonrefundable fee. On Form 656 you will mark if you want to make a one-time payment to cover the tax debt, or make a a short term, periodic payment offer, or deferred period payment offer.
How does an IRS tax settlement work?
An IRS tax settlement works by entering into an agreement with the IRS that allows one to pay less tax than they actually owe. One can do this by filing a 'Offer In Compromise' or OIC form.
Does the California DMV report used car sales to the IRS?
No. The DMV has no idea what you paid for it or sold it for, so they have no amount to report to the IRS.
Is a canceled check a legal receipt for US federal income tax purposes?
It is evidence of payment and supports the claim being made. It should be an adequate receipt for the IRS.
How many days do you have to report a currency transaction report to IRS?
15 days
