Request An Installment Plan

Q: How to request for an Installment Plan to file tax returns.

A: The IRC states," you can make monthly payments through an installment agreement if you're not financially able to pay your tax debt immediately. However, you will reduce or eliminate the amount of penalties and interest you pay and avoid the fee associated with setting up an installment agreement if you pay your tax bill in full. Before you apply:File all required tax returns; Consider other sources (loan or credit card) to pay your tax debt in full to save money; Determine the largest monthly payment you can make ($25 minimum); and Know that your future refunds will be applied to your tax debt until it is paid in full.” You can request an installment agreement over the phone. Simply call the IRS at 1-800-829-1040. They will set up a payment plan over the phone and send you some paperwork to fill out. The IRS must agree to accept your installment agreement if you meet certain criteria: your total tax does not exceed $10K and the monthly payments will pay your tax debt in full within 3 years. The IRS will not approve your installment agreement if you have not yet filed all your tax returns. You will need to file all your back taxes before requesting a monthly payment plan.

You can apply online if you owe $50K or less in combined individual income tax, penalties and interest; you need to call the phone number on your bill or notice; 

For Further answer visit: http://www.asktaxguru.com/8034-request-an-installment-plan.html

child custody tax question

AskTaxGuru.com Junior Member, madawg22, asked:

I got custody of my son in August of 2010. My X is telling me that by claiming him I am violating the IRS rule since I did not have him for more than 1/2 of the year. My tax person stated that this is not true and that I did not violate anything. My custody paper work does not identify who claims who, just who has custody. Did I do something wrong and is my tax person wrong?

Should I ammend my tax claim for 2010 and allow my X to claim the son? I just want to do the right thing. Thanks

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Tax Question

AskTaxGuru.com Junior Member, feng, asked:

I am a 21 year old college student (dependent).
My parents invested my college savings in stocks. They have about 30,000 dollars left in shares of Apple (I am a senior at a public university)
They are in the 33% tax bracket.
Edit: I am in California Edit: I do not have a job (doing unpaid internship overseas)

Questions: What happens if they transfer the 28,000 dollars worth of stock into a brokerage account under my own name.

Effectively gifting the shares to me. They have a joint account so I should be safe under 28,000 dollars from gift tax.
The stock gained 7000 dollars so was bought with 21,000 dollars.
If I get the stock, will I have to pay kiddie tax on the 7000 if I do not sell the stock?
Will it benefit me if I keep the stock until I graduate, and get a job to be taxed at my own lower rate?

Thanks in advance!