I strongly suggest that you wait until she returns to the US and signs it herself.Ok..I have prepared 1040x for 2014 and 2015 and...she is not in USA at the moment
so what can I do about signature...
of course I dont want to sign on her behalf ...
I am not a paid preparer ...so I can use that option...
Any solution...can I just leave it blank?
I am suggesting that you not only wait until she returns to the US and signs it herself, but also has it reviewed by a tax professional as well.I strongly suggest that you wait until she returns to the US and signs it herself.
I am suggesting that you not only wait until she returns to the US and signs it herself, but also has it reviewed by a tax professional as well.
No, you cannot sign the amended return for her. A Form 1040-X is a type of income tax return; specifically an adjustment to a previously filed income tax return. When it comes to income tax returns (Form 1040 series returns) the rules for allowing an agent of the taxpayer to sign the return in place of the taxpayer are more limited than with other kinds of returns. The rules that apply for income tax returns are found in Treas. Reg. § 1.6012-1(a)(5). It allows an agent to sign an income tax return for the taxpayer if one of the following conditions are met:Well I have power of attorney ...and I can send a copy to IRS along with 1040x ...can I sign instead of her ...and next to my sign ...write POA ?
Tax professionals are generally enrolled agents, tax CPAs, tax attorneys, and to a more limited extent, paid tax preparers authorized by the IRS. You likely don't need a tax attorney for this (and I say that as a tax attorney myself). I’d think an enrolled agent or tax CPA would be a good way to go.Can you suggest where and how to find Tax professional ..those free aarp tax aide are not helpful when we have complicated questions...
Well I prepared amended 1040x for both 2014 and 2015 and I removed self employed income because we got W2 (I repeat she got cash and less than min. wage because employer refused to provide w2 and pay her officially. and she wanted to be abide by laws so she decided declare as self employment income and pay taxes) Even thought it was not a self employment income.Tax professionals are generally enrolled agents, tax CPAs, tax attorneys, and to a more limited extent, paid tax preparers authorized by the IRS. You likely don't need a tax attorney for this (and I say that as a tax attorney myself). I’d think an enrolled agent or tax CPA would be a good way to go.
You have already been told that because the income was received in 2017 it has to go on the 2017 return. You cannot put it on the 2014 and 2015 returns.Well I prepared amended 1040x for both 2014 and 2015 and I removed self employed income because we got W2 (I repeat she got cash and less than min. wage because employer refused to provide w2 and pay her officially. and she wanted to be abide by laws so she decided declare as self employment income and pay taxes) Even thought it was not a self employment income.
So correct me if I am wrong on amending 2014 and 2015 returns with removing self employment income.
Further I am thinking I should distribute this total income of 21500 in to two parts and assign equal part to 2014 and 2015 ...because she worked for same amount of time in 2014 as well as 2015...(last 3 months of 2014 and first 3 months of 2015) ...
Since you are a lawyer..what is your suggestion on this? I understand that if I file 2017 return without reflecting this income ...IRS may send a notice but can I give an explanation that I distributed this income where it belongs (2014 and 2015 via 1040x)
I understand that I consult tax professional like you mentioned but what I am worried that ...even after paying them good money for their time...they might end up saying ...oh sorry you dont have any other way to save on taxes...you have to treat it as 2017 income and pay taxes accordingly ...there is no other way...
And this is why you wait until she gets back and signs it herself.Well I prepared amended 1040x for both 2014 and 2015 and I removed self employed income because we got W2 (I repeat she got cash and less than min. wage because employer refused to provide w2 and pay her officially. and she wanted to be abide by laws so she decided declare as self employment income and pay taxes) Even thought it was not a self employment income.
So correct me if I am wrong on amending 2014 and 2015 returns with removing self employment income.
Further I am thinking I should distribute this total income of 21500 in to two parts and assign equal part to 2014 and 2015 ...because she worked for same amount of time in 2014 as well as 2015...(last 3 months of 2014 and first 3 months of 2015) ...
Since you are a lawyer..what is your suggestion on this? I understand that if I file 2017 return without reflecting this income ...IRS may send a notice but can I give an explanation that I distributed this income where it belongs (2014 and 2015 via 1040x)
I understand that I consult tax professional like you mentioned but what I am worried that ...even after paying them good money for their time...they might end up saying ...oh sorry you dont have any other way to save on taxes...you have to treat it as 2017 income and pay taxes accordingly ...there is no other way...
I’m not quite clear on what you are trying to do. But understand this: the income is included on her return for the year the income is RECEIVED, not the year that she worked. So if she worked in 2014 but the employer did not pay her for it until 2017 after the lawsuit, that income is taxed in 2017 because that is the year the income was received. And thus that is the proper year for the employer to issue the W-2 and 1099, too. As we have told you about the lawsuit, the 1099 income merely needs to be reported on line 21 of the 2017 return as it was not self-employment income, and that will get it reported properly.Well I prepared amended 1040x for both 2014 and 2015 and I removed self employed income because we got W2 (I repeat she got cash and less than min. wage because employer refused to provide w2 and pay her officially. and she wanted to be abide by laws so she decided declare as self employment income and pay taxes) Even thought it was not a self employment income.
So correct me if I am wrong on amending 2014 and 2015 returns with removing self employment income.
Further I am thinking I should distribute this total income of 21500 in to two parts and assign equal part to 2014 and 2015 ...because she worked for same amount of time in 2014 as well as 2015...(last 3 months of 2014 and first 3 months of 2015) ...
Since you are a lawyer..what is your suggestion on this? I understand that if I file 2017 return without reflecting this income ...IRS may send a notice but can I give an explanation that I distributed this income where it belongs (2014 and 2015 via 1040x)
And that is what they should tell you for the money she received in 2017. That is included on her 2017 return and there is no way you can move that back to 2014 and 2015. You will just cause her a ton of trouble (and potentially penalties too) if you try to do that. Like it or not, what the employer paid her in 2017 as a result of the lawsuit is included in her 2017 income and thus goes on her 2017 return.I understand that I consult tax professional like you mentioned but what I am worried that ...even after paying them good money for their time...they might end up saying ...oh sorry you dont have any other way to save on taxes...you have to treat it as 2017 income and pay taxes accordingly ...there is no other way...
No..OP needs a CPA.You have already been told that because the income was received in 2017 it has to go on the 2017 return. You cannot put it on the 2014 and 2015 returns.
You really need to have a tax professional handling these things. Otherwise you are going to mess your friend up.
Actually, some unnamed elderly lady needs a CPA (or Tax Pro, or whatever).No..OP needs a CPA.
A tax pro is someone who did a two week training at H&R block and is not a CPA. Elderly lady needs a CPA. Not a cut rate low class tax pro.Actually, some unnamed elderly lady needs a CPA (or Tax Pro, or whatever).
lol...Fair enough...Actually, some unnamed elderly lady needs a CPA (or Tax Pro, or whatever).
I agree that the OP needs someone who knows what they're doing. That may end up being a CPA, but there are "tax pros" who are more than "cut rate" tax pros.A tax pro is someone who did a two week training at H&R block and is not a CPA. Elderly lady needs a CPA. Not a cut rate low class tax pro.