• Welcome to OGBoards 10.0, keep in mind that we will be making LOTS of changes to smooth out the experience here and make it as close as possible functionally to the old software, but feel free to drop suggestions or requests in the Tech Support subforum!

Random Tax/CPA question...

WFFaithful said:
Posting for a fellow Deacon fan:

Dear Sports Board Denizens:


I am seeking the advice of any CPAs or tax experts among us on a situation I'm presently in with the NCDOR. Although I am a North Carolina native, I have studied, worked, and lived in another state for approximately 14 years. During that time I have maintained a NC driver's license and voted absentee in federal and state elections. Up until 2012, I filed my annual state taxes with North Carolina, but my long-time CPA (he did taxes for my family for as long as I can remember) recommended since I live and earn all my wages in another state, I should really be filing state taxes there. I did this seamlessly for calendar year 2013 until the present. Last week, I received in the mail a $7,000 bill from the NCDOR asking me to pay up for taxes owed in calendar year 2015. This figure included penalties and interest.


For the record, I called my parents' CPA and he advised me to compose a letter to the NCDOR explaining that I lived and worked in this other state in 2015, and back that up with pay stubs, bank statements, proof of residence. 


  I am unsure what action to take and would welcome advice from any experts.   
Click to expand...

I'm assuming the friend's Federal returns did have a NC address, otherwise the DOR would not have flagged this, right?
 
what free tax software are people using?

have used the free TurboTax for years, but have a few additional things to file this year that require an upgrade to their $90 version
 
That was such BS when Turbo Tax moved a bunch of common things to their Premier tier version last year
 
WFFaithful said:
Posting for a fellow Deacon fan:

Dear Sports Board Denizens:


I am seeking the advice of any CPAs or tax experts among us on a situation I'm presently in with the NCDOR. Although I am a North Carolina native, I have studied, worked, and lived in another state for approximately 14 years. During that time I have maintained a NC driver's license and voted absentee in federal and state elections. Up until 2012, I filed my annual state taxes with North Carolina, but my long-time CPA (he did taxes for my family for as long as I can remember) recommended since I live and earn all my wages in another state, I should really be filing state taxes there. I did this seamlessly for calendar year 2013 until the present. Last week, I received in the mail a $7,000 bill from the NCDOR asking me to pay up for taxes owed in calendar year 2015. This figure included penalties and interest.


For the record, I called my parents' CPA and he advised me to compose a letter to the NCDOR explaining that I lived and worked in this other state in 2015, and back that up with pay stubs, bank statements, proof of residence. 


  I am unsure what action to take and would welcome advice from any experts.   
Click to expand...

Nothing about this seems legal or smart.
 
Your friend is a resident in the state that he lives and works in. He would be smart to get an appropriate drivers license and vote in that state as well.
 
Probably grasping at straws here, but figured I'd get opinions on what I should do with a tax related question:

I'm a Ph.D. graduate student, so I get paid a stipend on top of having whatever my tuition technically is paid for me. The way my taxes work is I get issued a 1098-T, which includes all payments made to the school in one box (tuition) and all scholarships/grants in another box (tuition payments made for me + my stipend), and I pay income tax on the overage of the second box compared to the first box. For 2019, my 1098-T issued to me by the school is just wrong. Box 1 is correct, and they have the matching amount for tuition in box 5 also correct. But they have listed only paying a fraction of the stipend that they actually paid me on the form (they are around $15,000 short). The amount they are missing is actually exactly 6 months worth of pay, so I have no idea how that mistake happens. Anyways, they don't do tax withholding on my paychecks, so this mistake would probably save me ~$1500 that I would otherwise have to pay in tax, which is something I could do, but is not a trivial amount for a grad student. So my question is: am I somehow obligated to point out the mistake, or would feigning ignorance and filing as is until or if they issue a corrected 1098-T be ok?
 
Read what you are affirming when you sign the return. Understating your income can have severe consequences. Whether those are worth $1500 to you only you can decide.
 
tagsfan said:
Read what you are affirming when you sign the return. Understating your income can have severe consequences. Whether those are worth $1500 to you only you can decide.
Click to expand...

LOLOL this is terrible advice. You have a W-2 starting how much you earned. Report it. Odds are that the confusion is on your end rather than theirs anyway.
 
Also understating your income has almost zero consequences. If you get audited and have to pay the extra $1500 of tax they will charge you about 3% interest so who cares. Surfs up.
 
DeacDiggler said:
Also understating your income has almost zero consequences. If you get audited and have to pay the extra $1500 of tax they will charge you about 3% interest so who cares. Surfs up.
Click to expand...

REPORTED

Record of Complaint
The Board investigates complaints against CPAs and CPA firms alleged to have violated North Carolina General Statute 93 and/or the North Carolina Accountancy Act including the Rules of Professional Ethics and Conduct. If the Board determines that a CPA or CPA firm has violated the statutes and/or rules, the Board may impose disciplinary action on the CPA or CPA firm. The Board does not intervene in fee disputes nor does the Board have the authority to order monetary damages. If you have these type problems, you should consult an attorney. If you prefer to file your complaint by mail, please use this form.
 
Got this back:

Mr. Tannen,

We have no record of a Mr. Deac Diggler being a licensed CPA in the State of North Carlina. If you would like to amend your complaint . . .

Otherwise, we will consider this matter closed.

Regards,
. . .
 
When you think about the competence of most of the taxpaying public, that's why they have third party reporting in the first place. Although by some very highly unusual circumstance it was audited and they discovered it, they could charge you a late payment penalty of 25%
 
I suppose that’s technically true, but I have literally never heard of someone having their reported wages overridden for any reason. You’re more likely to get audited for reporting the higher number and they’d probably give you a refund.
 
DeacDiggler said:
LOLOL this is terrible advice. You have a W-2 starting how much you earned. Report it. Odds are that the confusion is on your end rather than theirs anyway.
Click to expand...

So, it's terrible advice telling someone not to commit perjury? I don't recall learning that in BudatWake's ethics course.
 
You must log in or register to reply here.
Back
Top