Ask the Tax Resolution Expert: How Do Kiddie Tax Rules affect the Madoff Carry Back?
As a certified tax resolution specialist, I help individuals and businesses get the tax help they need to solve their tax problems. I even get questions from other CPAs and tax professionals (like the one below) seeking expert tax resolution advice. If you have a question, please call our office at 1-866-IRS-PROBLEMS or visit www.taxresolution.com
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Question: I have been involved in the preparation of form 1045 carry back claims that go back five, four, and three years. In many instances, the carry back eliminated the tax liability for the parents in 2003 and 2004. These taxpayers often have children who were subject to the kiddie tax based upon their tax rates. However, 2003 and 2004 are closed years.—Matthew H. Pennsylvania
I have inquired to the Office of Chief Counsel as to if any relief would be available for this situation and it does not appear that anything is imminent. Just wondering if your firm has considered this issue and if there is any groundswell to get relief.
Answer: Hi Matthew, our team of tax resolution experts at Tax Resolution Services have not yet encountered this issue you describe in connection with any of our 1045 carry back scenarios. However, if we hear of any updates on this matter in terms of tax relief, we will be sure to update the information on our blog. Learn more about the kiddie tax.
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We have several Bernie Madoff cases that we’re working on in house. It’s important for victims of investment fraud to know that they can recoup some of their losses through IRS tax codes. You will need expert tax help amending your tax returns and carrying back losses to previous years. It’s a complicated and technical process – but it could help taxpayers who’ve gotten caught up in Ponzi schemes recoup 30-40% of your losses.
For more advice or information on investment fraud recovery, you can call us at 866-IRS-PROBLEMS (866-477-7762) for a FREE consultation and we can discuss the case in more detail.
More Tax Help, IRS News and Tax Relief Tips:
- Ask the Tax Resolution Expert: Victim of Investment Fraud Needs Advice on Filing 2008 Taxes
- New IRS “Safe Harbor” Guidelines for Ponzi Victims Filing Tax Theft Loss Deductions
- Ask the Tax Resolution Expert: Do I need to Disclose Business Records to the IRS for Offer in Compromise Related to Personal Taxes?
Tags: 1045, Bernie Madoff, investment fraud, IRS help, IRS problem solver, kiddie tax, Michael Rozbruch, ponzhi schemes, tax expert, tax relief
November 7th, 2009 at 9:58 am
Your services are worth seeking for because you help newbies in business gasp what’s its really like about business and taxes.