Question 1

What is an Individual Taxpayer Identification Number (ITIN)?

Accepted Answer

An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the IRS. The IRS issues ITINs to individuals who are not eligible to obtain a Social Security Number but may have a filing requirement. It is important to note that an ITIN is not a replacement for an SSN or a work permit; it is used solely for filing purposes.

Question 2

How do I apply for an ITIN?

Accepted Answer

To apply for an ITIN, you need to submit Form W-7 along with your tax return. Any tax office that offers this service can provide more information, but it is generally recommended to file with a Certified Acceptance Agent (CAA).
Our office is prepared to assist you with filing for an ITIN and has a CAA on staff.

The following documents are accepted for an ITIN application:
Passport (stand-alone document)*
National identification card (must show photo, name, current address, date of birth, and expiration date)
U.S. driver's license
Civil birth certificate (required for dependents under 18 years of age)
Foreign driver's license
U.S. state identification card
Foreign voter's registration card
U.S. military identification card
Foreign military identification card
Visa
U.S. Citizenship and Immigration Services (USCIS) photo identification
Medical records (dependents only - under 6)
School records (dependents only - under 14, under 18 if a student)

Question 3

How long does it take to obtain an ITIN?

Accepted Answer

The IRS application process usually takes 6-8 weeks, but taxpayers should anticipate potential delays.
The IRS is working to process ITINs as quickly as possible, but sometimes it may exceed the expected timeframe.

Question 4

How can I renew my ITIN?

Accepted Answer

ITINs need to be renewed every 5 years, and the renewal process is the same as applying for a new ITIN.

If your ITIN has already expired, it is crucial to renew it as soon as possible. There is no guarantee that you will be assigned the same ITIN after renewing.

If you are uncertain about the validity or expiration status of your ITIN, please call the ITIN Department at 1-800-908-9982 for verification.

Question 5

What tax changes affect taxpayers with an ITIN in 2023?

Accepted Answer

Starting in 2019, the deduction for dependents with an ITIN has decreased from $2,000 to $500. Any tax return with a primary taxpayer or spouse filing with an ITIN will automatically be ineligible for the Earned Income Tax Credit (EITC).
However, if you are a California resident filing with an ITIN, you may still qualify for the EITC at the state level.

Question 6

What is an enrolled agent?

Accepted Answer

Enrolled agents are tax professionals who have obtained the highest credentials allowed by the IRS by successfully passing a rigorous three-part exam. On the other hand, CPAs are licensed by their respective state boards of accountancy while EAs have a federal certification. To maintain an active license, enrolled agents must fulfill annual continuing education requirements.

Question 7

What tax issues can an enrolled agent help me with?

Accepted Answer

Enrolled agents are qualified to represent taxpayers before the IRS and can provide assistance in various tax matters. They can prepare financial reports, tax documents for individuals and businesses, offer tax planning services, and assist with tax resolution needs, including audits. They can also handle state-level tax revenue issues. It's important to note that, generally, only attorneys and individuals who have passed the Tax Court Exam can represent taxpayers in Tax Court.

Question 8

What is the statute of limitations for IRS audits and collections?

Accepted Answer

Generally, the statute of limitations for IRS audits and collections is between 3 and 10 years from the date the tax return is filed or from when the tax was assessed. If you believe that the statute of limitations may apply to your situation, please contact us to verify, as it is determined on a case-by-case basis.

Question 9

What should I do if I receive a letter from the IRS?

Accepted Answer

Do not ignore any notices sent by the IRS or your state revenue agency. It is important to contact your tax professional or a tax resolution specialist for assistance. Some notices may have been sent in error, while others may require immediate attention

Question 10

What are some common mistakes that taxpayers make when dealing with the IRS?

Accepted Answer

The most common mistakes include:
Failure to report all income or provide all tax documents at the time of filing.
Ignoring tax notices received from the IRS.
Solely relying on a tax professional to meet all deadlines.
Neglecting to review the tax return before signing.
Taking tax advice from individuals who are not tax professionals.
Withholding information with the intent to evade paying taxes.
Failing to verify the credibility of the tax preparer.
Filing taxes too early without proper review.
Not providing the correct bank account information.

Question 11

What Types of payments do you accept?

Accepted Answer

We accept the following payment methods:

Cash
Checks
Credit/Debit
ACH
Venmo
Zelle
PayPal
Google Pay
Apple Pay
Samsung Pay

Question 12

Is there an age limit to claim my child as a dependent?

Accepted Answer

Yes, there is an age limit to claim a child as a dependent for tax purposes. Generally, the child must be
under the age of 19 at the end of the tax year or under the age of 24 if they are a full-time student. 
Click here to see if your child qualifies.  However, there is an exception forchildren with disabilities, 
where there is no age limit as long as they meet the qualifying criteria. 
It's important to review the specific IRS guidelines but your tax interview can help you determine if you
qualify to claim your child as a dependent based on their age and other eligibility requirements. In
addition to meeting the requirements, there are three more requirements to consider in order to claim
a dependency exemption for your child:
1. Dependent taxpayer: You must be financially responsible for more than half of your childs support.
2. Citizen or resident: must be a U.S. citizen, U.S. national, or resident of the U.S., Canada, or Mexico.
3. Joint return: Your child cannot file a joint tax return with a spouse unless it's only to claim a refund.

Question 13

Do I need to file a return?

Accepted Answer

The minimum income amount depends on your filing status and age: 
Single filing status:
$12,550 if under age 65
$14,250 if age 65 or older
Married filing jointly:
$25,100 if both spouses under age 65
$26,450 if one spouse under age 65 and one age 65 or older
$27,800 if both spouses age 65 or older
Married filing separately:  
$5 for all ages
Head of household:
$18,800 if under age 65
$20,500 if age 65 or older
Qualifying widow(er) with dependent child:
$25,100 if under age 65
$26,450 if age 65 or older
If your income is below that threshold, you generally do not need to file a federal tax return.
However...you must file a return if you had self-employment income paid on 1099-MISC form for any amount over $400. 
This also applies for cash income for services rendered of $400 or more.

Question 14

Can my full-time college student be claimed as my dependent and still file their own return?

Accepted Answer

If your child is a full-time college student, you can claim them as a dependent until they are 24. If they are working while in school, you must still provide more than half of their financial support to claim them. You may be able to claim them as a dependent even if they file their own return.

Be aware that if your student meets any of the requirements below, they must file their own return:
They have more than $1,100 of unearned income
They earn more than $12,550

Question 15

Can I receive a tax refund if I am currently making payments under an installment agreement or payment plan for a prior year's federal taxes?

Accepted Answer

Generally, no. A condition of your installment agreement is that the IRS will automatically apply any refund due to you against taxes you owe. If your refund exceeds your total balance due on all outstanding liabilities including accruals, you will receive a refund of the amount over and above what you owe.

There are special rules for taxpayers behind on their mortgage and/or utilities. Please give us a call if you find yourself in this situation.

Question 16

To qualify for head of household filing status, do I have to claim my child as a dependent?"

Accepted Answer

In certain circumstances, you do not have to claim your child as a dependent to qualify for head of household filing status; for example, a custodial parent may be able to claim head of household filing status even if he or she released a claim to exemption for the child.

Question 17

What should I do if I made a mistake on my federal return that I have already filed?

Accepted Answer

It depends on the type of mistake you made:
Many mathematical errors are caught during the processing of the tax return and corrected by the IRS, so you may not need to correct these mistakes yourself. 
If you did not attach a required schedule or form, the IRS will contact you and ask for the missing information.
If you did not claim the correct filing status or you need to change your income, deductions, or credits, you should file an amended or corrected return using Form 1040X, Amended U.S. Individual Income Tax Return.

Question 18

I retired last year, and started receiving social security payments. Do I have to pay taxes on my social security benefits?"

Accepted Answer

Social security benefits include monthly retirement, survivor and disability benefits. They do not include supplemental security income (SSI) payments, which are not taxable. The amount of social security benefits that must be included on your income tax return and used to calculate your income tax liability depends on the total amount of your income and benefits for the taxable year.To find out whether any of your benefits may be taxable, compare the base amount for your filing status with the total of:
One-half of your benefits.
All of your other income, including tax-exempt interest.
The base amount for your filing status is:
$25,000 if you are single, head of household, or qualifying widow(er),
$25,000 if you are married filing separately and lived apart from your spouse for the entire year,
$32,000 if you are married filing jointly,

Question 19

If the custodial parent releases a claim to exemption for a child by signing a Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, or a substantially similar statement, may the noncustodial parent claim the child as a qualifying child for the earned income credit?"

Accepted Answer

Generally, no. The noncustodial parent may not claim a child as a qualifying child for the earned income credit based on the custodial parent’s release of a claim to exemption for the child.

The custodial parent may be able to claim the child as a qualifying child for the earned income credit if the residency test and all the other requirements are met.

Note: For income tax purposes, the custodial parent is, generally, the parent with whom the child lives for the greater number of nights during the year.

Tax Resolution Specialist l Enrolled Agent Representative

Frequently Asked Questions