User talk:Lizzit
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Welcome!
Hello and welcome to TaxAlmanac! I like the detail on your user page - great job!
Please let me know if I can help in any way with you getting used to TaxAlmanac - that's what I am here for.
- Tim Doyle, TaxAlmanac Moderator - Talk to me 09:33, 11 September 2006 (CDT)
Hi Lizzit,
Thank a bunch for you help.
Carmen333
efile
excellent points.
thanks
i paid a variety of credit cards but I still cannot get copies of the original invoices?
can't I sue esmokes for consumer fraud with the state being a plantiff also
I was mislead
they should be responsible
Check list
any chance I could get a copy of your checklist? I am relativley new at preparing taxes in my own business and a list should would be helpful.
My email is beengel212@yahoo.com if you would be willing to share it and email it.
Thanks! Beth
Beengel 09:07, 4 March 2007 (CST)
Check list
Aloha Lizzit, my e-mail address is actionbsns@aol.com. I would love to receive your checklist.
Paula
question on your comment 12/2/06
Hi Lizzit I was searching to solve my case (posted on 4/11/07 re 5471 non-filing)and saw your comment on International Tax (12/2/06)
"File the prior years' 5471s. If there is no SubPart F income, file just two past years' worth and this year's. If there is SubPart F income, file the past five years' and this year's. The accompanying 1040X will just be blank (unless there's SubPart F income). Getting out of penalties should be easy-peasy; you may want to review your reasonable cause waiver request for nonfiling of the 5471 with a lawyer or tax professional who's written a bunch of these (successfully) before. "
--- I have a client who hasn't file 5471 for 4-5 years and I am thinking of filing all prior years' 5471. As your comment suggests, do you recommend to file with 1040X instead of just sending 5471 with a reasonable cause cover letter? If so, shoudl I include reasonable cause statement on the back of 5471? Do I need to have taxpayer sign the cover letter (or the statement) under the penalty of perjury? --- I am a self-employed and this is my first penalty case for 5471. I woudl like to know how other professionals handle this. I would appreciate your comment on this Thank you! YH YH 19:40, 11 April 2007 (CDT)
Thank you!
Lizzt - thank you so so much for your time. Your explanation was very helpful. I will keep in touch with you -- Thanks again.
bank charges
i saw your post for the TP that had no bank statements nor cancelled checks, it is truely a sham that some of the biggest banks in the US (bank of america and chase) do not provide the cancelled checks back with the statements nor provide a copy of the cheks, I have told every client that if they choose to use a big bank, then they need to download every cancelled check or pay extra for that fee. Unfortunately here in the states the banks can and will do whatever they want and charge accordingly, thank you for all your comments ! TexCPA 14:23, 25 April 2007 (CDT)
hi
i saw your post to trish's thread..where do you get "error and omissions" insurance?
thx, sue
Reply to Sue
Sue,
You didn't leave a way to contact you.
It's rather obvious, really, and you've probably already resolved the question by now. Just search on Google for "errors and omissions insurance". Also, your EA or CPA or other organizations that you are a member of may have special discount or sweetheart deals.
Yours,
Lizzit
Resident or Dual-Status?
Hello there,
It seems like you may know a bit about resident/non-resident issues so I thought I'd ask you...
My clients left the US on June 1, 2007 to return to India. They passed the substantial presence test but my question is Do they get to choose whether or not to file as a resident or dual-status and must I file Form 1040-C (Departue or Sailing Permit) with their tax return? What about Form 8854 (Initial and Annual Expatriation Info. Statement)?
Thank you in advance for any help you can give me, Aisha
Expat Allowance
Thanks for the help! My client misunderstood and it was already included in Box 1 etc, just as you surmised.
TheTinCook 16:08, 19 April 2008 (CDT)
Hi, wondering if you could clarify something for me....you answered a question I posted last year about a nonresident alien 1040NR. so i thought I'd access you again, since I read your profile and this seems to be your area of expertise...the NRA (Japan) has a brokerage account in US. Has divs from US companies, some foreign companies (with foreign tax withheld), interest on bonds from US companies and US treas interest. Japan treaty is 10%. Am I correct in assuming the following?
US divs taxed at treaty rate (10%), capital gain distributions not taxed, other foreign divs no tax (no credit given for foreign taxes withheld), all corporate bond interest taxed at 10%? what about US treas interest? the treaty is worded in such legaleze that it makes no sense to me. does portfolio interest which is not taxed at all only include bank interest?
thank you in advance for your help, greatly appreciated.....I hope this is a simple as I've stated above......
Prior messsage left - 1040NR
Oops, I messed up how I left the last question, seems I added it so someone else's last post and forgot to sign it. so here it is again. my apologies.....
Hi, wondering if you could clarify something for me....you answered a question I posted last year about a nonresident alien 1040NR. so i thought I'd access you again, since I read your profile and this seems to be your area of expertise...the NRA (Japan) has a brokerage account in US. Has divs from US companies, some foreign companies (with foreign tax withheld), interest on bonds from US companies and US treas interest. Japan treaty is 10%. Am I correct in assuming the following?
US divs taxed at treaty rate (10%), capital gain distributions not taxed, other foreign divs no tax (no credit given for foreign taxes withheld), all corporate bond interest taxed at 10%? what about US treas interest? the treaty is worded in such legaleze that it makes no sense to me. does portfolio interest which is not taxed at all only include bank interest?
thank you in advance for your help, greatly appreciated.....I hope this is a simple as I've stated above......
Lisasig 10:09, 20 May 2008 (CDT)
Whoops, wrong message.
I don't think this reply was meant for me. Thanks for the fast reply though.
TheTinCook 06:07, 22 May 2008 (CDT)
"Hiya!
I'm not logging in so frequently any more, so I expect this is getting to you too late to be of any use.
>>>the NRA (Japan) has a brokerage account in US. Has divs from US companies, some foreign companies (with foreign tax withheld), interest on bonds from US companies and US treas interest. Japan treaty is 10%. Am I correct in assuming the following?
>>>US divs taxed at treaty rate (10%), capital gain distributions not taxed, other foreign divs no tax (no credit given for foreign taxes withheld),
Yes.
>>>all corporate bond interest taxed at 10%? what about US treas interest?
Zero rate on these interest items.
>>>the treaty is worded in such legaleze that it makes no sense to me. does portfolio interest which is not taxed at all only include bank interest?
Zero rate on all interest except interest directly associated with running a business. So, if you Japanese guy had a K1 from a US-based business, the interest income on that K1 would be taxable. But if it's just a portfolio of corporate bonds, junque bonds, and US Tbills, no tax on the interest. It's why so many foreigners buy Tbills.
Retrieved from "http://www.taxalmanac.org/index.php/User_talk:TheTinCook"
checklist
Hi Lizzit, Would you be so kind as to forward me a copy of your return review checklist/ Thank you so much. Forward to astolberg@ftwlaw.com An
Stir them up
Lizzit: you know I'm a proud Democrat, but I thought suggesting that we will re-paint the White House would stir them up around here. lol.CrowJD 12:25, 5 November 2008 (CST)
Foreign Taxes
Hi Liz,
I finally got all the documentation for my entertainer who earned some income overseas. Here's the breakdown:
England: Earned $36,000 USD Tax withheld: $7,209 USD Australia: Earned $12,500 USD Tax withheld: $3,625 USD Canada: Earned $11,750 CAD Tax withheld: $1,763 CAD
I believe that England won't be worth going after since he's above the treaty amount -- but how would I figure out the tax liability so I know what to claim on the 1116?
Also, for Australia and Canada what do you think is the most efficient way to get those taxes back? Should I attempt to file or contract the work out?
Thanks for any guidance you can give me.
-Chris (furtherside@yahoo.com if you wish to email me directly)
ChrisV2 20:20, 23 March 2009 (CDT)
I note you very informative answers.Would appreciate with some leads on the following case :
Facts: 1)H, is a NRA, married to W, also an NRA .(Non-Treaty domiciled in community) 2)H and W own a joint bank account in the State of NYK with Rights of Survival. 3)H and W own a joint broker account in the State of NYK with right of survival 4)H is the sole contributor to the NYK bank account by way of his employer directly transfering the funds to the Joint account (employment not connected with a trade/business in the US). 5)H is the sole contributor to the NYK broker account by way of receiving US shares from his employer(employment not connected with a trade/business in the US) ~ I read PLR 7737063 which defines bank accounts as "intangible assets"
Questions : 1.Would H’s contribution to the joint bank account be defined as "intangible assets" ? 2 Would H’s contribution to the joint broker account be defined as intangible asset ? 3.Are there any gift tax implications on the incoming funds/shares ? 4.Are there any gift tax implications if the couple wire funds (not shares)from their joint US bank or joint US Broker to a joint account outside the US ? 5.Are there any gift tax implications if the couple wire funds to separate accounts outside the US.
Thank you . Paris 13:49, 16 May 2009 (CDT)
NRA to NRA query
Dear Lizzit,
Thanks very much for taking the time to guide me in my query. Would appreciate your thoughts on the below:
My query related to potential Gift taxes only (I believe Non Resident Aliens ,NRA, are exempt from taxes on interest and capital gains and NRA's US bank deposits do not have US Situs for estate tax purposes).
In my example (where both account owners are NRAs)I used New York as the location of the account because in that state a joint account is deemed 50%/50% ownership hence potentially the "gift" occurs when funds come in.This is the only state where joint accounts are not based on "contribution" hence assume 50%/50% ownership .
However,NRA's have an exemption from gift tax of transfer of "intangible property" which,I believe includes "Bank Deposits" so I am not clear if that 50% gift can be deemed "intangible".If that is indeed the conclusion, then no gift tax occurs.
Assuming the 50%/50% ownership assumption above in New York,I would have thought that on withdrawal,if one spouse withdraws more than his 50%, without obligation to repay, might be construed as gift.But in this case as well, the question arises whether this is "intangible" property
Clearly,if they are spouses, each would enjoy the annual exclusion of approximately $133,000 in 2009.
I may be wrong, but I think form 3520 applies only to US persons .NRAs would not be obliged to sumbit the form.
Any thoughts are appreciated.
NRA to NRA query
Hi Lizzit,
Did you get a chance to look at the query/question I sent you a while back . Am still unclear on the application of 2523(i)(3) on joint bank accounts by two NRA spouses. 1.Are funds in the joint account owned 50%/50% on creation i.e when funds enter the account ? 2.What happens when one spouse withdraws from the joint to his own account ? is he allowed to the extent he doesnt withdraw more than his share ? 3.Can it be deemed that in (1) above donor gifts half of the deposit amount which is intangible property ? 4.What happens when there is transfer from joint account to joint account ? If i understood you , there were no gift consequences ?
NRA question asking person
Without your name/email/contact details, no, I can not reply... write to me at Liz at BritishAmericanTax dot com.
A cry for help from the Land Downunder
Help
I came across a discussion forum ( February / March of last year ) regarding Form W-8BEN and US income and was very impressed with your input and I am really hoping that you can help me ( or point me in the right direction ) with what is proving to be a real challenge.
The short version is:
A deceased US resident alien ( who was an Australian citizen living in Illinois ) created a discretionary trust prior to his death.
The beneficiaries of the trust are his elderly brother and sister who both live in Australia………are both very ill and unable to look after their own affairs……..and both require full time care.
His chosen successor trustee who is a US citizen appears ( under the guidance of the trust’s US attorney ) to have done all the right things as far as the IRS is concerned but unfortunately:
(i)the attorney has subsequently had a nervous breakdown and without any warning closed his practice ( but not before he made a number of errors )
(ii)the trustee is elderly and suffering from Parkinson’s disease and cannot cope with any stress.
In an attempt to resolve the situation the US trustee has been replaced by the beneficiaries daughter/niece ( and only living relative ) who is an Australian citizen and resident.
I for my part am trying to help sort out the mess left behind by the attorney in order to secure the funds for the beneficiaries long term care.
We are currently attempting to transfer the US investments into the name of the new trustee.
With the help of SmkTax I have established that the change of Trustee has by default changed what was a US domestic trust ( US Court / US Trustee / Aussie Beneficiaries ) into a foreign trust ( US court / Aussie Trustee / Aussie Beneficiaries ).
My questions are
a. under the circumstances is form W-8 BEN the right form to submit to the financial institutions ( I am aware of the reduced withholding tax due to the US / Australian tax treaty ) on behalf of the trust?
b. Do we continue to submit annual tax returns to the IRS and what form do they take?
c. Do we keep the EIN or do we need a different type of number?
d. Given that the change occurred mid year do we submit two different tax returns for the two parts of the tax year?
e. Does the change from a domestic to a foreign trust trigger a tax event requiring the submission of a Form 926 ( Return by a Transferor of Property to a Foreign Estate or Trust )? If yes:
f. When did the event occur (i) at the date of the change of Trustee or (ii) when the property is actually transferred?
g. Who signs the form given that the Trustee is not a US citizen and it is no longer a US trust?
h. Is there anything else we need to do?
I sincerely apologize for dumping this on you but having encountered a lot of people who claimed they know the answers………….but in fact had no idea………..I have got to the point where I don’t know where else to turn.
Very best regards
James Spencer
A cry for help from the Land Dowmunder II
Hi Again
My email address is jamesfspencer@hotmail.com
James
