|
I have a bizarre situation, but one that might come back to bite me in the rear end. I am a US citizen who lived as a legal resident in Spain from September 2007 to May 2011. However, my immigration status permitted only study at approved institutions and approved on-campus work related to my area of study. Starting in May of 2011, I was informally hired by a Spanish company. My job was to sell advertorials in the country of Tanzania. I was on their books as an independent contractor. I have no idea about Spanish law, but by US law I certainly was not, as they dictated my hours, I was not interchangeable, and I used the office supplies they provided, etc. During my (illegal) work in Tanzania (I was there on a tourist visa), I resided in a company apartment and weekly I was given cash money by my manager and I was told to spend it only on food/leisure items. The amount given was 400,000 Tanzanian shillings per week, which began with a value of around $300 and ended up having a value closer to $200. However, I did send a bit less than $1,000 by western union to my mom so she could pay my student loans. The company I worked for employed me illegally and the "food" money I was paid was likely counted as a business expense. In January I quit my job and returned to Spain. As my student resident card had expired, I entered on a tourist visa. I had an illegal sublet agreement arranged solely by phone and made money by giving private tutoring sessions (English classes) in private homes. I was paid in cash at the end of every class (usually no more than an hour and a half in duration) and I would often turn right around and spend the money the same day. I have no idea how much income I had exactly, but I would estimate that I earned between 4 and 5 thousand euros before I returned to the USA in late June of last year, having overstayed my tourist visa but leaving essentially no paper trail. In all honesty I have no idea just how much money I made as I kept no personal records and never held onto receipts. My question is, how likely is it that someone could find all this out (with respect to my real identity) and force me to pay back taxes/interest/penalties etc on unreported overseas income? Should I try to figure out just how much I earned and report it? If so, what kind of ballpark figure should I try to construct? If I don't want to pay back taxes, should I keep all this a dead secret or is it OK to tell my friends? If it must be kept secret, are there any circumstances in which I'll be forced to explain how I supported myself abroad for such a long time? Edit: To make things more complicated, upon my return to the USA I got a job and earned about $6,000, which I did report (and got a refund on) so my entire 2012 income was probably closer to $11,000 than $6,000. Xibanya fucked around with this message at May 9, 2013 around 04:31 |
| # ? May 9, 2013 04:27 |
|
|
|
| # ? May 23, 2013 18:44 |
|
|
AbbiTheDog posted:Here are the audit steps: So we ended up sending amended returns for the years, correcting errors in the forms and clarifying my positions. The cherry on top of everything is that these are non-resident returns so god knows how long they will take to figure things out. Is there anything else that I should be doing?
|
| # ? May 9, 2013 20:52 |
|
|
Xibanya posted:I have a bizarre situation, but one that might come back to bite me in the rear end. Um, unless your friends are snitches who would call the IRS on you, you can probably tell them. OTOH, as a fine, upstanding citizen you should amend your tax return and report the income: if you were abroad from 2007-2012, you probably qualify for the foreign earned income exclusion and would not have to pay tax on the income anyway. Read about it here: http://www.irs.gov/Individuals/Inte...---Requirements I kinda doubt you're going to get audited on a simple one W-2 $6,000 return, but what do I know.
|
| # ? May 9, 2013 23:00 |
|
|
Would someone be so kind to tell me about taxes in the U.S.? I'll be moving from Germany to Phoenix, Arizona in a couple of months. I'm expected to earn 65k annually (gross), and I want to know how much NET money I'll have in the end. Further - What taxes do I have to pay and how much, percentage wise, of my income will I loose due to each tax? - Do I have to pay for health insurance myself, or does my employer have to pay for that?
|
| # ? May 15, 2013 10:34 |
|
|
b2n posted:Would someone be so kind to tell me about taxes in the U.S.? I'll be moving from Germany to Phoenix, Arizona in a couple of months. e: I am not a CPA/Accountant/Money person You could look at something like this: http://calculator2.taxpolicycenter.org/index.cfm for the Federal tax and find a similar calculator for the state tax (not even sure whether AZ has a state tax). This assumes that you get taxed as a resident (which will depend on your immigration status when you come to the US). The health care situation is employeer dependent. I am employeed at a University and I am enrolled in their insurance policy. It gets deducted out of my paycheck every month. shodanjr_gr fucked around with this message at May 15, 2013 around 15:53 |
| # ? May 15, 2013 15:48 |
|
|
shodanjr_gr posted:e: I am not a CPA/Accountant/Money person His residency won't matter, he's earning funds in the US. He'll lose 7.65% to social security/medicare on top of the federal and state tax burden.
|
| # ? May 15, 2013 16:18 |
|
|
AbbiTheDog posted:His residency won't matter, he's earning funds in the US. His immigration status matters in terms of being allowed the standard deduction or whatever credits he would potentially be entitled to as a resident afaik. Although probably if you are not on an F/J visa, you will hit the substantial presence test after half a year and will be taxed as a resident anyway...
|
| # ? May 15, 2013 16:23 |
|
|
I had to file a 4868 back in April because I couldn't wrap my head around this problem. I thought I would take a shot here that someone might understand. In January of 1992 I purchased 90 shares of Sara Lee @ $53 1/8 totaling $4884. This stock split 4 times over the years so last year on 6/28 I had 360 shares. Then something happened. Sara Lee decided not to be Sara Lee anymore and became Hillshire Brands. In the process they dumped off all their coffee interest and created a stock call Coffee Co. As a shareholder I was given a) a one time cash dividend b) 72 shares Hillshire Brands and c) 360 shares Coffee Co. The very next day some company in the Netherlands bought out Coffee Co. completely. In this exchange I received $0 and 360 shares DE Master Blenders. My broker is reporting this second transaction (the Dutch Company buy out) on 1099-B as a taxable event. My question is why? I didn't receive any cash and still hold the Dutch shares. If it is a taxable event how am I to determine the share price to compare against my original basis in Sara Lee? And what percent of that basis applies to the Coffee part when I still have shares in Hillshire Brands? Appreciate any thoughts.
|
| # ? May 15, 2013 21:05 |
|
|
So I submitted amended returns a couple of weeks ago for three tax years (2009-2011). Last week, the 2010 and 2011 returns showed up on the online tool (http://www.irs.gov/Filing/Individuals/Amended-Returns-(Form-1040-X)/Wheres-My-Amended-Return-1). I've been checking regurarly to see if/when the 2009 return will show up. I checked today and none of the returns show up at all. Is this the website just being finicky or could it be a sideeffect of the fact that the returns that I am ammending were audited so these ones are being routed differently?
|
| # ? May 19, 2013 16:04 |
|
|
If I'm a sole proprietorship, do I need to file a Form 8822-B when I move? If so, which of the boxes do I check about "what this affects?" The first two don't seem to apply to me, but I'm not sure.
|
| # ? May 21, 2013 21:42 |
|
|
shodanjr_gr posted:So I submitted amended returns a couple of weeks ago for three tax years (2009-2011). Last week, the 2010 and 2011 returns showed up on the online tool (http://www.irs.gov/Filing/Individuals/Amended-Returns-(Form-1040-X)/Wheres-My-Amended-Return-1). I've been checking regurarly to see if/when the 2009 return will show up. I checked today and none of the returns show up at all. amended returns are looked at by actual people instead of being read by a computer. it can take a couple of months for them to get posted into the IRS ledgers. Also the fact that the original returns were audited will also merit additional scrutiny. I'd forget about them and check in a couple of months tbh. There are at least three or four desks it goes through before someone finally does the posting. Jessi Bond posted:If I'm a sole proprietorship, do I need to file a Form 8822-B when I move? If so, which of the boxes do I check about "what this affects?" The first two don't seem to apply to me, but I'm not sure. Not necessarily. If you're just filing a schedule C on your tax return at the end of every year (on a form 1040), I suppose you could file a form 8822 if you really wanted to. If you're doing quarterly payroll tax returns (form 941) then you definitely should file the form 8822-b. The IRS will change your address in its database when you file your 1040 tax return at the end of every year anyway. E: I just realized you sell e-books for a living. Make sure that your payment processor knows about your address change, you're going to want to make sure your 1099-k forms get sent to you in a timely manner next tax season. That change of address form is unnecessary in your case. Vote Republican fucked around with this message at May 23, 2013 around 07:18 |
| # ? May 22, 2013 07:59 |
|
|
cwinkle posted:I had to file a 4868 back in April because I couldn't wrap my head around this problem. I thought I would take a shot here that someone might understand. 1. so after the renaming and the spinoff and splits and reverse splits your basis in the two groups of stock sum up to $4884 unchanged. you have to allocate this amount between hillshire brands and coffeeco stock first. 2. find out what the stock price was for a share of hillshire farms and a share of coffeeco on opening bell on june 29, 2012. these amounts i have found: HSH: 5.70/share Coffeeco: 12.8/share 3. the sum of these two numbers is 18.50. the percentage of basis to allocate to hillshire farms is $5.70/$18.50 = .3081 >>> .3081 x 4884 = $1505 roughly Hillshire Brands basis. $4884 - 1505 = $3379 basis in coffeeco stock. 4. if you didnt think this was loving retarded before youre going to think it is now. the dutch company "redomiciled" the shares to amsterdam. this is why it's a taxable event. 5. DE master blenders didn't list the stock in the netherlands until july 9. so we have to use the implied value of the coffeeco stock on the morning of june 29, 2012. this we get by subtracting the $3 dividend from each CoffeeCo share, so per share implied value is $9.80. 6. $9.80 x 360 = $3528 FMV of DEMB. because the coffeeco stocks were absorbed as a merger, the "redomicile" transaction works in tax law as an exchange, and in exchange for your coffeeco stock you got DEMB stock which had a fair market value higher than your coffeeco basis. 7. your gain on the coffeeco stock is $3528 - 3379 = $149. long-term, so it's taxed long term capital gain rates. i hope that made sense. it's more than a little bit retarded. that's not the only way to compute the basis either. frankly if it were my own return i'd just enter the basis as a number fairly close to the proceeds of the merger.
|
| # ? May 22, 2013 08:36 |
|
|
polyfractal posted:Last year, I worked for a California-based company while living in Massachusetts for about three months. I then moved to South Carolina, where I worked for the rest of the year. I split my taxes accordingly, such that MA was only eligible for the taxes while I was actually living there. The Massachusetts DoR rejected your return because someone (or their computer) thinks you were "domiciled" in Massachusetts in 2012. I'm guessing there was some data entry snafu - i've never used consumer tax prep software so I don't know if it allows you to enter part year/nonresident information. "domicile" in most states means you lived there more than half the year and as a result had a tax home there. It's probably worth going to a CPA/EA over, but get a quote first. It takes 25 mins tops to write a fancy letter and get the necessary documentation to prove that you weren't domiciled in Massachusetts and send said fancy letter with enough paperwork to satiate the average revenue employee's hunger for inedible cellulose fiber and deal with the non-issue. there are a lot of dishonest idiot CPAs who think this sort of thing is a $300 job and get away with it.
|
| # ? May 22, 2013 09:01 |
|
|
|
| # ? May 23, 2013 18:44 |
|
|
Vote Republican posted:1. so after the renaming and the spinoff and splits and reverse splits your basis in the two groups of stock sum up to $4884 unchanged. you have to allocate this amount between hillshire brands and coffeeco stock first. Thank you so much.
|
| # ? May 22, 2013 16:01 |
|
