FAQ
Specifics of international private law.IRS AND STATE TAXES
What happens if I owe tax money to the IRS but can't pay?
You should always do your due diligence to be compliant with the IRS, pay current estimated taxes if necessary, make sure your employer is withholding appropriate amounts on your W2, always claim the right amount of dependents, etc.
In some cases life gets on the way and you can find yourself in a situation of tax debt without the means to pay for it.
The IRS always has a solution or a way to help those that have the intention to pay but honestly are not able to.
These are some examples:
– Instalment agreement
– Partial payment installment agreement
– “Currently Not Collectible” status.
– Offer in Compromise.
IMPORTANT: All these resolutions and more are available but not for every case, you have to be a candidate. There are many factors that will determine if you are a candidate for a given resolution.
DO NOT Pay high amounts of money to companies that offer to “try” to get you the resolution you want, you may not qualify for it and you will end up losing your money.
If you don’t know what to do CONTACT US, we will do a free evaluation on your case and tell you what to do, in many cases you can solve these problems without paying for help.
What if I don't have anough money to pay for professional help?
Taxpayer Education Group will inform you and guide you as much as possible at no cost. In some cases, when we have enough donations or volunteers we can provide those professional services at no cost to you.
If that is your case, CONTACT US, we will do an evaluation on your case and tell you what to do, in some cases you can solve these problems without paying for help.
How quickly will I get my refund?
The IRS issues most refunds in less than 21 calendar days. However, if you filed on paper and are expecting a refund, it could take six months or more to process your return. It is also taking the IRS more than 21 days to issue refunds for some tax returns that require review including incorrect Recovery Rebate Credit amounts, or that used 2019 income to figure the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC).
I have not received my tax refund after 21 days. Why?
Some tax returns take longer to process than others for many reasons, including when a return:
- Is filed on paper
- Includes errors, such as incorrect Recovery Rebate Credit
- Is incomplete
- Needs further review in general
- Is affected by identity theft or fraud
- Includes a claim filed for an Earned Income Tax Credit or an Additional Child Tax Credit. See Q&A below.
The IRS will contact you by mail when (or if) they need more information to process your return.
You can check the status of your tax refund online by visiting; https://sa.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp
Calling the IRS will help me get my return faster?
IRS representatives can research the status of your return only if:
- It’s been more than 21 days since you received your e-file acceptance notification,
- It’s been more than 6 months since you mailed your paper return.
You can check the status of your tax refund at: https://sa.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp
What does the status on my tax return mean?
RECEIVED – The IRS has received your tax return.
PROCESSING – The IRS is looking at your tax return.
APPROVED – The IRS approved your refund. They are are preparing to send your refund to your bank or directly to you in the mail.
You can check the status of your tax return online at: https://sa.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp
What should I do if I receive a check or deposit from the IRS that is not mine?
Please don’t cash the refund check or spend the direct deposit refund. Send the refund back to the IRS.
They will eventually discover this mistake and they will ask for that money back, it could cause interest, penalties and other actions.
Is there an age limit to claim my child as a dependent?
To claim your child as your dependent, your child must meet either the qualifying child test or the qualifying relative test:
- To meet the qualifying child test, your child must be younger than you and either younger than 19 years old or be a “student” younger than 24 years old as of the end of the calendar year.
- There’s no age limit if your child is “permanently and totally disabled” or meets the qualifying relative test.
I lost my tax refund check. What do I do?
If you lost your refund check, you should initiate a refund trace:
- Call the IRS at 800-829-1954 (toll-free) and either use the automated system or speak with an agent.
- However, if you filed a married filing jointly return, you can’t initiate a trace using the automated systems. Download and complete the Form 3911, Taxpayer Statement Regarding RefundPDF or the IRS can send you a Form 3911 to get the replacement process started.
Your claim for a missing refund is processed one of two ways:
- If the check wasn’t cashed, you’ll receive a replacement check once the original check is canceled.
- If the refund check was cashed, the Bureau of the Fiscal Service (BFS) will provide you with a claim package that includes a copy of the cashed check. Follow the instructions for completing the claim package. BFS will review your claim and the signature on the canceled check before determining whether they can issue you a replacement check. The BFS review can take up to six weeks to complete.
What is the difference between a W2 and a 1099-MISC or 1099-NEC?
Although these forms are called information returns, they serve different functions.
Employers use Form W-2, Wage and Tax Statement to:
- Report wages, tips, and other compensation paid to an employee.
- Report the employee’s income and social security taxes withheld and other information.
Employers furnish the Form W-2 to the employee and the Social Security Administration. The Social Security Administration shares the information with the Internal Revenue Service.
Payers use Form 1099-MISC, Miscellaneous Information or Form 1099-NEC, Nonemployee Compensation to:
- Report payments made of at least $600 in the course of a trade or business to a person who’s not an employee for services (Form 1099-NEC).
- Report payments of $10 or more made in the course of a trade or business in gross royalties or payments of $600 or more made in the course of a trade or business in rents or for other specified purposes (Form 1099-MISC).
- Report payment information to the IRS and the person or business that received the payment.
To make it simple:
- If you are receiving a W2 then most likely that company is withholding enough taxes so you won’t owe any money at the end of the year.
- If you are receiving a 1099-MISC 0r 1099-NEC then you are some kind of subcontractor, no taxes are withheld, you will owe taxes on that income.
BANKRUPTCY
What is the information on how to file bankruptcy?
Basic information on filing bankruptcy is available on the federal courts’ Web site at: https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics
How can I select a bankruptcy attorney?
A list of private attorneys in your area may be available from your state bar association, local law schools, or legal aid clinic.
Attorneys who provide bankruptcy services are required to disclose certain information in writing, including the services they will provide and the cost for those services.
What if I don’t have enough money to pay a bankruptcy attorney?
Taxpayer Education Group will inform you and guide you as much as possible at no cost. In some cases, when we have enough donations or volunteers we can provide those attorney services at no cost to you.
In addition to that, he clerk of your bankruptcy court or your state bar association may have information regarding individuals or organizations offering bankruptcy-related legal services, including services provided for free or for a reduced fee.
What is a non-attorney bankruptcy petition preparer?
Non-attorney bankruptcy petition preparers may type bankruptcy documents with information supplied by the debtor.
They may not provide legal services, such as helping you choose whether to file under chapter 7 or chapter 13 or identifying your property that is exempt from the reach of creditors.
Bankruptcy petition preparers may advertise their services under “document preparation services” and similar categories of services, but not under “legal services.”
May I file bankruptcy on my own with no professional help?
A bankruptcy filing may raise complex legal issues, so it is often advisable to consult with an attorney.
However, an individual may file bankruptcy pro se (pronounced “pro say”), a Latin term that means “on one’s own behalf.” Information on filing bankruptcy pro se is available on the federal courts’ Web site at: https://www.uscourts.gov/services-forms/bankruptcy/filing-without-attorney
How do I contact the trustee who is handling my chapter 7, chapter 12, or chapter 13 bankruptcy case?
If you have filed bankruptcy under chapter 7, chapter 12, or chapter 13, you should have received a notice identifying the trustee and providing the trustee’s contact information.
Contact information for chapter 7, chapter 12, and chapter 13 trustees is found on the Program’s Web site at: https://www.justice.gov/ust/private-trustee-locator
Does the trustee represent me in my chapter 7, chapter 12, or chapter 13 case?
No. Generally, the trustee’s duties in a chapter 7 case are to determine whether property is available for creditors, to collect that property, and to distribute the property to creditors.
The trustee’s duties in a chapter 12 or chapter 13 case are to determine whether your proposed repayment plan is workable, to collect payments you make according to the repayment plan, and to distribute those payments to creditors.
I don’t speak or understand English well. How can I understand the bankruptcy proceedings?
Debtors who do not speak or understand English well may request free telephone interpreter services at the section 341 meeting of creditors. The U.S. Trustee Program pays for these services.
I’m having trouble paying my mortgage. Someone contacted me and offered to help me avoid foreclosure. What should I do?
Some individuals and companies use the bankruptcy system to take advantage of homeowners in distress. These individuals and companies are sometimes called “foreclosure rescue scheme” operators.
They contact homeowners whose homes are listed in the foreclosure notices. A foreclosure rescue scheme operator may promise to renegotiate the terms of the homeowner’s mortgage, and may direct the homeowner to make mortgage payments or pay a monthly fee to the operator.
The scheme operator may direct the homeowner to file a bankruptcy petition, or the scheme operator may file a bankruptcy petition in the homeowner’s name. In reality, the scheme operator does not try to renegotiate the homeowner’s mortgage or help the homeowner avoid foreclosure, and often disappears after taking the mortgage payments or monthly fees.
There are legitimate programs and services to assist homeowners in financial distress.
CONTACT US With any question you may have.
INMMIGRATION
What types of visas are available for people to come to the United States?
There are more than 20 nonimmigrant visa types for people traveling to the United States temporarily.
There are many more types of immigrant visas for those coming to live permanently in the United States. The type of Visa you need is determined by the purpose of your intended travel.
What if I don't have money to pay for inmmigration help?
Taxpayer Education Group will inform you and guide you as much as possible at no cost. In some cases, when we have enough donations or volunteers we can provide those professional services at no cost to you.
If that is your case, CONTACT US, we will do an evaluation on your case and tell you what to do, in some cases you can solve these problems without paying for help.
My Visa expires in 5 years. What does that mean?
A visa must be valid at the time a traveler seeks admission to the United States, but the expiration date of the visa (validity period/length of time the visa can be used) has no relation to the length of time a temporary visitor may be authorized by the Department of Homeland Security to remain in the United States.
Persons holding visas valid for multiple entries may make repeated trips to the United States, for travel for the same purpose, as long as the visa has not expired, and the traveler has done nothing to become ineligible to enter the United States, at port-of-entry.
My Visa will expire while I am in the United States. Is that a problem?
No. If the Department of Homeland Security, Customs and Border Protection Immigration Officer at the port-of-entry admitted you into the United States for a specific period of time, s/he will note your authorized period of stay on your admission stamp or paper Form I-94, called an Arrival/Departure Record.
You will be able to remain in the United States during your authorized period of stay, even if your visa expires during the time you are in the United States. Since your admission stamp or paper Form I-94 documents your authorized stay and is the official record of your permission to be in the United States, it is very important to keep inside your passport.
What is DACA?
On June 15, 2012, the secretary of Homeland Security announced that certain people who came to the United States as children and meet several key guidelines may request consideration of deferred action for a period of two years, subject to renewal, and would then be eligible for work authorization.
Individuals who can demonstrate through verifiable documentation that they meet these guidelines will be considered for deferred action. Determinations will be made on a case-by-case basis under the DACA guidelines.
Is the DACA policy over?
- No. While the court order does not allow USCIS to approve initial DACA requests, we are presently able to continue processing DACA renewals and associated applications because the court temporarily stayed its injunction as to these requests.
- Moreover, USCIS will continue accepting initial DACA requests. However, pursuant to the July 16, 2021, order from the Southern District of Texas, DHS is prohibited from granting initial DACA requests after July 16, 2021, and their accompanying requests for employment authorization.
- USCIS will continue to:
- Adjudicate requests for DACA renewals and associated applications for employment authorization documents (EADs) and advance parole.
- Accept and process applications for advance parole and replacement EADs from DACA recipients.
NOTE: Information as Sep 23 2022
BUSINESS ADMINISTRATION
Can I file company taxes by myself?
Taxes are complex, every individual or business is different, and the tax code keeps evolving.
Its highly recommended that you hire a professional to file taxes for your company, not doing so may result in a higher tax responsibility.
Do I need to open a corporation?
Depending on the size of your operation you may not need to create a corporation. Information is the key, CONTACT US and we will do an assessment.