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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.
What else can I help you with?
How can I make a quarterly tax payment to the IRS?
To make a quarterly tax payment to the IRS, you can use the Electronic Federal Tax Payment System (EFTPS), make a payment online through the IRS website, or mail a check with a payment voucher to the IRS.
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.
Does the IRS report to credit bureaus?
No, the IRS does not report taxpayer information to credit bureaus.
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
How to report under the table income to the IRS?
To report under-the-table income to the IRS, you should file an amended tax return and report the income accurately. You may also need to pay any additional taxes owed. It's important to be honest and transparent to avoid penalties or legal consequences.
Do employers report 1099 forms to the IRS?
Yes, employers are required to report 1099 forms to the IRS.
Does the IRS report taxpayer information to credit bureaus?
No, the IRS does not report taxpayer information to credit bureaus.
Where do I send my 1040 ES payment?
You can send your 1040 ES payment to the IRS using the payment voucher included with the form or by using the IRS Direct Pay website.
