The Dr. Friday show is here! The tax filing deadline is coming up, and Dr. Friday talks all about taxes, tax filing dates, and the following questions:
- It’s Not Too Late To Apply For The PPP Loan
- Do You Need Help With Tax Representation?
- When Stimulus Checks Will Be Done Sending Out
- Will Filing An Extention Help You Or Hurt You?
- Can I Still Apply For EIDL Loan?
- Will There Be A Second Stimulus Check?
- Get Help With QuickBooks
- Why Have I Not Received My Stimulus Check?
and so much more!
Transcript
Announcer 0:01
No, no, no, she’s not a medical doctor, but she can share cure your problems or your financial woes. She’s the how-to girl. It’s the Dr. Friday show. If you have a question for Dr. Friday, call her now at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.
Dr. Friday 0:30
Good day, I’m Dr. Friday and the doctor is in the house. We are live here in the studio. I keep saying in the studio because for 10 years we are physically but we are still live on the radio. Now I’m in my home studio I guess they keep everything safe and sound. If you want to reach us at 615-737-9986 is the number here in the studio. We are on the last weekend before taxes are due. They are due this Wednesday coming on the 15th of July. So either does an extension. Remember extensions do not extend the amount due or file your taxes. So we have someone that called in early and they’ve been on hold for a little while. So why don’t we go talk to Brian and see what his question is? Hey Brian.
Caller 1:23
Dr. Friday, my daughter may come into a house, irrevocable trust, or a will. My question is, can she Give that to me? Can I live in it? Will she be paying taxes on it? How can we get that situation to where she owns it? But I am the one who lives in the house.
Dr. Friday 1:49
Well, there are a couple of options that you would have. I mean, since she’s inherited it, she already owns it. So that’s not really a question and when she inherits there should be no tax because there should be a step-up in basis that the date that she received it, so whatever date the value is, would be what she would inherit it. So that would be what she would later use for if she eventually sells it. She could do a perpetual agreement where you have a lifetime lease on the house so that it can’t be sold if part of the agreement of her inheriting is that you are able to live there for the rest of your life. There is the ability to have that kind of leases where someone can’t just sell it out if there’s something that happened to her. What would happen to the house if you’re still living, those are the kinds of considerations you might need to have. Theoretically, she doesn’t have to rent it to you, you could live in it and you maintain it or she maintains it and it’s an investment into her home, she didn’t have to consider it a rental because she’s not charging a fair rent to you. Or if she is then you could just treat it as a regular rental. I don’t know the whole situation but you do have some options.
Caller 3:00
So simply, she gets the house I’m allowed to live in and I pay all the bills all the taxes, upkeep it. It’s still her house. But I’m the one who lives in it just free and clear. Right?
Dr. Friday 3:13
Exactly, exactly. That would be the simplest, but I would make sure, God forbid something happened to her and whoever inherits the house after her that same agreement rolls if that’s the agreement in the existing will. I’m just saying, you might want to make sure you have something in writing and notarized so that you know, there’s a backup plan just in case.
Caller 3:35
So just in case, something happened and they wanted to kick me out. Right?
Dr. Friday 3:39
Well, that’s it. I mean, theoretically, I mean, it always sounds good on paper, but it’d be nice to make sure she obviously is on board and wants this to happen. If she has children or a husband, then it falls outside the family and he remarries and the new wife says, “Hey, what’s sell that house we need the money.” You know, so I would just make sure I had documentation. The two of you are not going to ever be the issue, it would be if something else happened to somebody.
Caller 4:06
Okay, she’s in one state the house is in another makes no difference, right?
Dr. Friday 4:10
Makes no difference until she decides to sell it at that time, she would have some possible tax issues. If it appreciates, you know, I think it gets value, she would have some growth on it.
Caller 4:23
All right. So it sounds like I can live there if she agrees.
Dr. Friday 4:28
Absolutely.
Caller 4:29
All right. Thank you so much. Appreciate it.
Dr. Friday 4:31
Thank you. All right. Appreciate that phone call and appreciate him waiting that long. Let’s go to Brad. Hey Brad.
Caller 4:40
Hi, good afternoon. My son inherited some money from my mother about $130,000 that got distributed in a check-in December 2019. But the check was made out to me because he’s a minor. Do I report that distribution on my taxes or do we have to do a tax return for him? He’s never had a return before.
Dr. Friday 5:11
Theoretically, miners cannot inherit. It was should have probably gone into the trust. I’m not an attorney, but that’s my understanding. Because you’re now you’re the custodian of that money until he hits a certain age 18 or 21, or whatever it is. I’m not saying that but you know, the answer to your basic question would depend on where this money came from. If it was a bank account in which someone wrote a check to him, there’s nothing to you to do put the money in a nice earning investment, and let it sit there, no taxes are due nothing happens it would have been handled on the estate side. If it was an IRA distribution or some sort of stock sales, then there could have been something but it sounds like you just received a check from the trustor from the estate.
Caller 5:57
No, I’m sorry, it was an IRA distribution that had been sitting in my mother’s personal accounts for years. The financial advisor said that it had to come out because she had inherited it from my sister years before. It had to come out
Dr. Friday 6:15
ready. It could have been inherited IRA, again, he’s minor because now you’re looking at taxes at your rate, you would report it on your tax return.
Caller 6:27
Okay. All right. Thank you very much.
Dr. Friday 6:29
No problem. Sorry about that. Thank you, Brad. Appreciate it. It’s always nice to do something after the fact but I would have probably in the future, always. If something like that anyone else is listening and something like that comes up, definitely talks to a financial planner, a tax person, because there would have been ways that that money could have come in smaller increments. I believe the new law says you have to do it within 10 years, and he could have waited unless he’s like four or five years old, he may have been an adult and then taking the money out and it could have stayed in an inherited IRA and growing that entire time and then it would have been taxed, possibly at a lower rate than at the parent’s rate. So it’s not a perfect situation, but it is what it is. I’m assuming that it cannot be redeposited again, I’m not a financial planner, but it would be something I’d probably talk to a financial person and see if there’s any way of putting that money back into an inherited IRA. I’m assuming no, but you know, what do I know? All right.
Dr. Friday 7:30
So if you want to join the show, you can 615-737-9986. Okay, so we have the stimulus checks still going out everyone. Most of the people probably received anyone that has filed their taxes consistently for 17, 18, and 19. The same way, meaning you didn’t get divorced, you weren’t a dependent. All those individuals, most of them would have received it. I don’t know what’s happening on the side of disability or social security because the people I deal with are filing taxes that receive those funds. So if you only receive disability or you only receive Social Security, my understanding is most of those people have received it. But I was doing a TV show on NewsChannel 5 plus, and we got several calls from individuals saying they hadn’t received it, at least two people that were on disability that have not yet received it. And they did not think they were being claimed as dependents on someone else’s tax return. Again, interesting to see how that works.
Dr. Friday 8:35
Now, I will tell you, if, in 2018, you were dependent, but yet in 2019, you are not some of those are still being treated, and that money will eventually come. You don’t lose the stimulus money. If for some reason in 18, you made more money than you did in 19. They are basing the stimulus in 2019. So maybe you only got 400 and maybe you’re in entitled whole $1,200 that will probably be picked up on your 2020 tax return and then refunded to you at that time. I don’t know about them sending more than one check out to an individual. My personal understanding from what I’m getting from the IRS, that isn’t going to happen, they’re going to send you one check. And then if they missed up and they didn’t give you money for a child or anything else, you’re going to be reclaiming that money on your 2020 tax return and getting the difference at that time. That’s why a lot of people I’m kind of encouraged. There’s a lot of communication saying there could be a second stimulus before the end of the year. Now we need to make sure taxes are filed. Everything is correct for 2019. Because if they’re going to use 2019 again, it’ll be interesting to see what we have going on in that situation. So we’ll take a look and see what you have there. All right. Let’s go ahead before the break. Let’s really quickly go to Javan. I’m horrible with names. What can I do for you, sweetie?
Caller 10:05
I just had a question about capital gain. My father recently passed and we split up some of the property and houses. My siblings received each a house and I received the commercial property which includes four duplexes. When I went to register them, of course, I put down that I paid zero but if I plan on selling them shortly in the future, I would worry about the capital gains.
Dr. Friday 10:31
You inherit them at the value they were the day your father passed away, sorry for your loss, too. Whatever it was worth at that time. If you don’t know you need to probably contact a real estate agent or someone in that industry to pull comps so you can get some similar properties and see what they were selling for around within 30 to 60 days of his passing.
Caller 10:55
Oh, okay.
Dr. Friday 10:57
And then you need to keep those because if you’re going to turn them into rentals and rent them for a while, that’s what we would use for depreciation purposes. If you decide you’re going to sell it, that would be your basis. So if you can sell it for 500, and you inherited it at 500, we wouldn’t have to pay any taxes. If you hold to a couple of years, you may actually get even more money for them, depending on how the market goes. But you really need to have that done. Your sibling should have the same thing done if they haven’t. But that’s my opinion.
Caller 11:26
Okay, if I register that as the dean’s office and then I put up a zero I’m not liable, or does it make a difference?
Dr. Friday 11:35
In my opinion, makes no difference because you could if that’s the IRS that I’m talking about, and the IRS is gonna be just fine if you can prove the date of your father’s passing and the value at that time.
Caller 11:45
Okay, well, that is perfect. Thank you very much.
Dr. Friday 11:48
No worries. Thanks for the phone call. Oh, good. Let’s talk to Taylor. Hello, Taylor.
Caller 11:56
Yes, yes. My question that I have is, can I pay my taxes and put it on my credit card after Friday?
Dr. Friday 12:06
Absolutely. I use a service called pay1040.com when I do it for clients. Their rate is going to be somewhere around like 1.8, 1.9% they will charge you a fee. But you can use your credit card and pay it Yes ma’am.
Caller 12:29
Oh, wonderful news. Thank you.
Dr. Friday 12:32
No problem. Thank you, sweetheart. That has saved more than one person All right, why don’t we take a quick break we can come back to the phone lines if you like or if you’ve got questions or you’re just not sure which way to go and taxes are on top of us, so we need to talk about it. Call 615-737-9986 number here in the studio and we’ll be right back.
Dr. Friday 12:58
We are back Live in studio. I’m Dr. Friday, I’m an enrolled agent licensed with the Internal Revenue Service to do taxes and representation. So if you have issues with the IRS or the state of Tennessee or other states, we deal with most states, or you’re just trying to get yourself back on your feet. Life happens sometimes it doesn’t go the way we all planned, and you haven’t filed taxes for a number of years. The first thing we have to do guys gets you into compliance. If you haven’t filed your taxes before anything else can be done. You can’t make a deal with the IRS. You can’t even get a decent payment plan without having everything filed. The IRS is really looking for people just to stay in compliance. That’s what their number one goal, then, of course, they want you to pay your bill. But first is that and I will tell you, we can’t even set up a payment plan until about the end of this month. I know it’s after the 15th they have basically said no payment plans are going to affect I haven’t seen an extension on that. But it’s likely that it may actually move even further out than that.
Dr. Friday 14:00
I did want to push out that PPP loans on many of you, which is the payroll protection for small businesses if you miss that it did end a little bit, but now it’s back until August 8. So you do want to push out further that is still out there, there are still EIDL loans for disaster relief. So if you’re a small business owner, a sole proprietor, I know that haven’t seen anything yet. They’re talking about possibly extending it. But right now as of July 31, unemployment, the Federal unemployment is going to end. So it’s something that you know, that they’re looking for. I will tell you, the SBA is looking to hire so if you don’t have a job, you might want to try to go that direction. They’re sending a lot of notices saying that they need help. And I can only imagine considering the number of applications that they’re having to process on. That hasn’t even started the forgiveness side of the whole process, so anyway, so if you have questions on that, all right, let’s see what we have going here if you want to join the show 615-737-9986. Why don’t we just had Terry and see if we can take that question real quick? Hey, Terry.
Caller 15:25
I filed a paper return back in at the end of March 31, in fac. I have yet received a refund. So I’ve been checking. Where’s My Refund on the internet and whatever. And nothing shows up. It keeps showing me no records. Are they that far behind that they’ve gotten mine yet? Do you think?
Dr. Friday 15:56
You know what I ought to say, Terry? I never realized how many people mail-in tax returns.
Caller 16:03
I’m old school, I’m in my 70s. And I just don’t trust computers all that much. [laughter]
Dr. Friday 16:09
It’s probably been a while so I just realized I guess I just assumed and that was my assumption, but I will tell you probably get a phone call a week. We did talk to her IRS rep on a local call or whatever she had and they basically said, of course, the IRS was closed from most of the end of March, all of April they opened again in June, supposedly.
Caller 16:32
I can’t reach anybody there.
Dr. Friday 16:35
Yeah, it’s all on a recording cell. But we were basically told every all the mail, even if you mailed in check-in or whatever. It was sitting still in the mailroom and they were working their way through and they supposedly received billions of pieces of mail a year. So just think about all the mail that they’re in, all the tax returns.
Caller 16:55
I used to work for US customs. I know.
Dr. Friday 16:59
That’s just sad. So in answer to your question, Terry, it’s going to be a while for that refund. I hate to say it, but it’s going to take a little bit longer. They were hoping to get through it by the first of August or they sorted at least or whatever was their expectation. I don’t know if that was hopeful thinking, or if that was a reasonable thought.
Caller 17:18
Okay. So 13 weeks is nothing to worry about? I don’t have to worry about I was going to send a duplicate return, but it tells you not to do that. I just want to make sure that I’ll get penalized.
Dr. Friday 17:28
I will ask you, Terry, do you have tracking if did you send it with some form of tracking?
Caller 17:33
No, I just mailed it. I went to the post office and if I wouldn’t have us in a check-in because I owed them money. Yeah, I probably would have sent his flight certified or registered or whatever. We get a receipt back but no, I just mailed it. I never it got back, so I’m assuming they must have gotten it.
Dr. Friday 17:52
I will say for anyone that’s listening and even Terry, if you’re mailing your tax return, always mail it with tracking. As Terry said, the fact is, if they don’t have it, if they haven’t received it yet, he would then have to mail another copy, but there would be no penalty because he doesn’t owe money. But my personal opinion is Terry, you know, I would even I would consider mailing another copy with tracking so at least you have something proving the date that they received it worse scenario would put on a second copy mailed in a first copy mailed on this day if you don’t see something in a few weeks.
Caller 18:30
okay, so just make it just make a copy what I’ve got a copy of and send that in which says stated at 3/31/20. That’s the date that I signed it and we sent it in and just send a copy into the post office, I can do that. Because what will happen to me if they never if they come back and said they never received or I get penalized?
Dr. Friday 18:56
You’re not likely to get penalized because they owe you money. But for one, if you wait too long, you’ll lose your refund. You can only go back three years. I’m not saying you would wait that long, but I’m just saying, but two we were assuming, and again, nothing against the post office, they handle trillions of pieces of mail, probably. But, we need proof just like that. I think last week, someone said, “Get us a certified envelope of some sort,” just something that says it was received on this day.
Caller 19:26
Okay. And then I’ll just put on a duplicate, duplicate return. That way, they’ll know that at least I absolutely I tried. Thank you.
Dr. Friday 19:36
No problem. Okay, bye. It’s coming into a mailroom that’s actually moving. So who knows? All right, let’s go to Phil. Hey, Phil.
Caller 19:50
Hey, Dr. Friday. Thanks for having me on. So I’m looking at starting a small online retail business. I’ve been paying attention to everything going on this year, and a couple of different products that have been just doing incredibly well, is anything to do with outdoors, kayaks, specifically. I’ve gotten into it quite a bit this year myself, I’d like to find a way to basically be able to get a wholesale price. Especially quality kayaks, because you can get them for fairly cheap at places like Walmart, but they’re not very quality. They don’t last very long. And they can be unsafe too. So what I’m trying to do is basically set up online retail and what my big question is, how am I supposed to account for taxes, especially in a place like Tennessee, where you don’t have a state income tax, but you’ve got to take out sales tax. And then I’ve also got to look at my end on accounting for my income tax for the federal. How does all that go into play?
Dr. Friday 20:50
Well, so you got the self-employment tax and your ordinary income tax, which is going to be a minimum of 20% if not closer to 25 of your bottom line going to your partner, which is the IRS of the business. Then you have your business tax, if you’re an entity, you may have franchise excise tax, you may not depending on what kind of business you set it up as. And then of course, you have the sales tax, which you collect separately anyway so that that’s kind of a wash unless you’re doing 100% built-in. So my answer to that is, is, I mean, as far as markup or price, you’ll have to build in all the shipping and everything for that. But once you get your financial and you’re looking at the bottom line, you might as well figure out that if I made 10,000, this month $2,500 is going into My Tax Account, the remaining number is going into my personal or being reinvested in the business.
Caller 21:40
Okay, so basically I need to account for at least 25% of my gross income, right?
Dr. Friday 21:49
Right, because you have business taxes and you’re going to have most likely you’re going to set this up at least as a single-member LLC. You could set it up as a SUB S corporation.
Caller 22:02
Yeah the LLC is what I was looking at.
Dr. Friday 22:02
Okay, so you’ll have a minimum of $300 a year for the annual license, and then you have $100 for franchise excise and tax prep. So that’s why I always set up this other tax account because these are all these extra fees that are above and beyond what you think about in running a normal business. So, that’s what I would do, I would just every month, whatever my bottom line is, ideally, set aside the money for taxes. The worst scenario is, in the first year or two, depending on how much you’ve paid out, you need to pay yourself back as well. But that comes from profits. So let’s say you invest $10,000 in this company, the business has a profit of $10,000 which means you have to pay tax on before I can pay you back $10,000. So it’s not a direct write off if that makes sense. But yeah, I would definitely just set it up and something as quick and simple as QuickBooks or if you’re going to use Amazon or someplace them. Some of them have some tight on accounting systems.
Caller 22:57
Yeah, Amazon doesn’t really ship these kinds of larger products. Okay, I’d have to look for something like UPS even.
Dr. Friday 23:06
But you can sell them assuming through Amazon just have separate shipping or no? We bought a cow that was like 100 pounds. It was huge. It’s like a life-sized cow yet to be on my property and understand this, but they actually shipped it So, but they did use a separate system now that you mentioned we bought it on Amazon, but they did ship it through a trucking system or whatever. Anyways, you’ll figure all of that out. But you know, I’m glad you’re thinking about that before you start the business. If you need some more consultants easier one on one, so we could actually physically put you into the situation instead of on the radio, but I can certainly help you. I always like to get people started on the right side because that just makes life so much easier in the long run.
Caller 23:58
Absolutely. Well, thank you. So much for your time. I greatly appreciate it.
Dr. Friday 24:01
Thank you. Good luck with your adventure. Thank you really quickly. Let’s go ahead and hit Matthew before we hit the break. Hey, Matthew.
Caller 24:09
Hey, Dr. Friday. Good to hear your voice again. It’s been about 10 years. I actually live outside of Austin, Texas now. Anyway, last year I filed my taxes, got a tax return. This year, I’ve tried to file everything that has been done online, so I have no physical copies of last year’s tax return. This year I went to file the claim that I never filed last year. I’ve still got the email showing that they accepted my online filing and everything like that. I even had like I said I got a tax return last year but they are now refusing to accept this year’s taxes online. Because they say I never filed last year and of course we also haven’t received the stimulus checks.
Dr. Friday 24:57
That’s interesting I mean, I had a situation were one of my wives of one of my clients. They file married filing joint they sent saying she had filed a team but yet I had proof that they filed a joint return and I had the E-file confirmation. So we submitted all that plus the tax return back to them. Do you have a copy of the tax return for 2018, Matthew?
Caller 25:17
No, I never printed it off. I thought I had it downloaded as a PDF but apparently it only downloaded partial pages.
Dr. Friday 25:29
So you’re gonna either have to recreate it, be honest with you, you’re gonna have to send them a paper copy that’s my answer to that because you can kind of argue until the sky turns blue or whatever. You might as well just take the letter to attach a copy of the 18, if you’ve got a copy of the email that says it was accepted, awesome attach that as well. So that way then you get in the system if there was a refund you want to make sure you get if you owe money well then you know when you start the time clock and start dealing with that whatever it might have been
Caller 26:00
Okay, so paper copy 2018 return, recreate it 2019 return to a paper copy at the same time?
Dr. Friday 26:14
Yeah, our system doesn’t require doesn’t check on 18 to 19. So I think you could probably have somebody, I mean, I know you get yourself or if you go to or just mail it either way. Is it a that a refund?
Caller 26:29
I’m actually gonna owe money this year.
Dr. Friday 26:31
Okay, well then mail it.
Caller 26:32
For whatever reason, our lawyer, I’m a school teacher, my wife’s an interventionist. They only withheld like $1,000 per for taxes all year.
Dr. Friday 26:45
Yeah, sometimes you have her double-check her withholdings again because they changed the W4 form in the first 19 and I think some people got messed up. So just make sure she reviews that I mean, again in the long run, but I would say go ahead and mail 19 them because it’s not like it’s a big rush. Do whatever you need to do on that. So and I would certify those to the IRS to the address that’s on that letter, at least the 18 to whatever addresses on the letter.
Caller 27:09
Okay. Let’s see. Now, are they going to be trying to say that I’m in violation for not having filed on time?
Dr. Friday 27:20
For 2019? Well, as long as you send it up by Wednesday, 7/15/20 you won’t have a problem.
Caller 27:27
I won’t be back in Texas before that.
Dr. Friday 27:31
Can you print out? I mean, isn’t it on a digital? Can you print out the return? You’ve prepared anywhere and just send it or no?
Caller 27:38
I don’t know. I’ll have to try and figure out if I can get into it. I’ve gotten through my desktop at home.
Dr. Friday 27:49
I gotcha is on a desktop. Um, I don’t know. Other than that, I would send in an extension and sending the money that you think you owe, and that won’t make a difference.
Caller 27:59
Okay, great. Thank you very much doctor for well, mate.
Dr. Friday 28:02
All right. Let’s take a quick break here. When we get back we’ll take the phone calls from Calvin and Jr. We’ll be right back with the Dr. Friday show.
Dr. Friday 28:21
All righty. We are back live in Studio 615-737-9986 is the number here and we have had two people waiting for all the way through this break. So let’s go ahead and go to Jr first.
Caller 28:42
I’m the executor. I live in Tennessee but the person that was deceased lived in Missouri. According to what we did, I want to know if it was correct. On the tax-wise, we paid the federal and state taxes in Missouri first and then distributed the amount of money that was for the funerals a different person paid for the funeral. Was that the correct order?
Dr. Friday 29:10
Yes. Hundred percent.
Caller 29:13
OKay. That’s all I needed to know. And then we also paid for a direct fee, which was only 4%.
Dr. Friday 29:22
And then you’ll have to pick that up as income but yes/
Caller 29:24
Yeah. And my executive fee also would come before the funeral?
Dr. Friday 29:32
That’s correct.
Caller 29:33
Okay. All right. Thank you very much.
Dr. Friday 29:35
No problem. Thank you for calling. Okay, let’s see here. I know my poor guy is working himself to the bone over there. Let’s see Calvin.
Caller 29:46
Hey, how you doing? My tax preparer pretty sure E-files. Of course, I’m the type that waits till the day of or few days ahead of time to write my check and actually send it in. Am I better off to go to this credit card website instead of mailing it in? Because I heard you tell him another caller that if you don’t track it, I just don’t know to get into this.
Dr. Friday 30:21
You can use your banking your checking account number I this is what I just did my own estimate for this time period because I’m filing an extension, but you can go to irs.gov and click “pay.” And you can put in your routing number and bank account number and there’s no fee and you can pay electronically. You print out a sheet of paper that shows the IRS has received your money. But I usually try to do that or pay electronically when I e-file for my clients. I do say I have a number of clients that like to mail in if you’re gonna mail your check, I would certify it just so you have proof that they received it.
Caller 30:57
Okay, and what is that 1040 where you can use a credit card?
Dr. Friday 31:04
It’s pay1040.com The only thing is just be prepared, they are going to charge you a fee like 1.9% or whatever the fee is.
Caller 31:15
Okay. All righty. I appreciate your time.
Dr. Friday 31:19
Thank you, sir. Appreciate you. All right, we are living here in the studio if you want to reach us at 615-737-9986 Let’s talk to Mike. Hey, Mike, what can I do for you, sweetie?
Caller 31:35
I was calling into kind of back up and verify what you said earlier about the IRS. I’m in Tennessee close to Nashville. I had the opportunity last week to speak with somebody from the IRS. I got through to somebody actually, I filed my taxes on February 3, with a return receipt and It was accepted. And they said that that particular place had been closed and was reopening on June 15. And they expected to be through all the mailed-in returns and six to eight weeks from June 15.
Dr. Friday 32:22
Your relative I mean, the representative we talked to was hoping to have it done closer to the first of August was the date we were given. So, we’re in the same ballpark and I would probably take your number versus mine. Always prepare for the worst. But yes, we’re both on the same page. It was closed, they basically said it was just closed because of COVID. But, whatever it has reopened and they’re working their way through it. They were hoping to have it done. Her expectation was the first of August and then she said you should start seeing it. If you go to go “Where Is My Refund?” on the IRS webpage that you know, be able to track it. We’ll find out. But you know, you had yours in earlier than most of the people I’ve talked to so far, to be quite honest. It’s a major mess at this moment. But I’m glad you, you know, at least they have some confirmed information that you physically talk to them. I mean, it’s nice to know, I haven’t been able to reach a revenue officer in about 30 days, to be quite honest.
Caller 33:24
I was actually pretty amazed. I kind of followed that online thing that says, how to talk to a human at the IRS and it actually worked.
Dr. Friday 33:32
Okay, I may have to go back and read that it’s been a while, so maybe I’ll need to read that to see if I can find out. I was a little spoiled. We used to have a representative hotline and that is, it’s not open yet. So now I have to do what everyone else and unfortunately, there’s a lot of people calling at the moment. So but thanks for calling and letting us know I really appreciate it, Mike. Thank you.
Caller 33:51
All right, thank you very much.
Dr. Friday 33:54
Okay, and let’s see we have Michael in Lewisburg. Hello Michael.
Caller 34:00
Yes. My question is when you’re the executive of an estate where somebody had died, and they had no income at all, I assume there’s nothing in the checking account or anything about the only thing that the state had was the person had was a motorcycle. This happened in Kansas, and the executor paid for the funeral and paid for just the necessary stuff to get him in the grave and to get the stuff out. Now, the motorcycle had a lien from the local bank. I mean, so the question is, the motorcycle that was the only asset and you know The only asset so who has the primary lien? The executive who had to pay for this stuff? And what did you use a motorcycle to sell that to get income to pay? Or the bank?
Dr. Friday 35:14
The bank. They would hit the first lien because they, you know, had it now if there’s hope that the motorcycle would sell for more than the lien, whatever was left would go to the executor. But unfortunately, in all honesty, this particular person died in debt. There’s no, no tax deductions for doing the right thing. Whoever the executor was, did what they were supposed to, in my opinion, what needed to be done. The executor would have nothing unless the bike had some value above what and unfortunately, like most cases, there’s probably not as much value as what the bank has due to it.
Caller 35:52
Right, right. I mean, this has been almost six years. And she still, she still has the bank, she still has the bike and nothing’s ever done. So does time make it make a difference?
Dr. Friday 36:15
It could it mean, they may have just ridden off the debt? I mean, theoretically, does she have but the problem is would she be able to get a clear title?
Caller 36:23
So even if they’ve written off the debt, how do you get a clear title?
Dr. Friday 36:27
Well, I mean, that’s where, you know, she probably need to contact the bank, you know, in all honesty, say, “Hey, I have a bike that, you know, was left at six years ago, and I want to sell it.” And see what they say they may say, they don’t have a lien or they’ve released the lien on it, therefore, sell it. At this point six years later, they basically are, you know, no one’s collecting on something like that. So, but the problem is, she wouldn’t have the right to sell it because the next person would try to register it and the lien would still be there.
Caller 36:58
Right.
Dr. Friday 36:59
Make sure it’s a clean title that would be contacting them and find out if the bike can be sold.
Caller 37:05
Okay, thank you so much.
Dr. Friday 37:05
No problem. Thanks. All righty. Why don’t we take a quick break here will be our last break. So if you’ve been holding your breath, you’re wanting to reach out and say, “What do I need to do about this?” Especially on tax issues call 615-737-9986. We’ll be right back with the Dr. Friday show.
Dr. Friday 37:41
We are back live in the studio. You’ve got questions, now’s the time, call 615-737-9986. phone lines are going Yay. All right. Why don’t we go ahead and start with Anna? Hey, Anna, what can I do for you?
Caller 38:04
Well, I’m in a bit of a tickle and I’m getting a little bit hysterical. I had not done my taxes in March and I was in an accident and I lost several weeks. My taxes are still not done. And the person who has helped me every year my bookkeeper friend is not able to because of a health problem this year. So I have no one. I called your office this week and just left a message. It’s more complicated than I can do.
Dr. Friday 38:41
So what you need to do is when the show ends call the line 615-367-0819 that’s my office number. I’m here. Give me a call when the show ends after three o’clock and let’s get an extension filed at this moment. And then we can get together right after the 15th and get you taken care of. But with an extension, we can talk a little bit more.
Caller 39:02
Thank you.
Dr. Friday 39:04
No problem. Okay. Alrighty, and let’s go to Betsy. I like the name, Betsy. It’s such a happy name. Hey, Betsy.
Caller 39:13
Hey, your shows wonderful, I just want to say that I didn’t get my $3500 you know, so I was getting anxious since it was to about April 21. And so I called my representative. I mean, she got on it instantly my app update and all this kind of stuff. And, but while I was on the phone with her, I said, seems like to me, they need to pay us interest. We always have you pay interest. And she said, she said they do. She said they do. But it wasn’t in this check.
Dr. Friday 39:44
Oh, well, it should have been now they pay you interest if it’s after the time period. So depending on when you receive the check, right, so they had until well theoretically until June 15. To give the refunds without interest. If you file Before that deadline, so there wouldn’t be interest if I doubt you’ll probably see it if you received in just a month or so after you filed.
Caller 40:10
I was due to receive my money, April 21. So I’ll file whatever they’re going to tell them three or four or five weeks before that. So it’s about three or four months.
Dr. Friday 40:22
Have you received it?
Caller 40:24
I just now received it.
Dr. Friday 40:27
It’s gonna be interesting to see how they do that. Because it normally would have been being that if you received it before the within the 21 days, right? It was no, no problem with the IRS unless there was a reason they have a problem. But because of the COVID. I haven’t had a situation yet. So Betsy that’s a great question. I’m wondering if they’re going to have to pay interest or not because they were mandated to shut down by the federal government.
Caller 40:55
Well, the Senate office said they did. That’s true. I like to Forgive them for that. I get that. I wish they would forgive us.
Dr. Friday 41:04
In all fairness, they have offered some forgiveness for that. Because that same Barri they’ve actually closed. So it’s gonna be interesting to see because I haven’t actually had to address most of that yet. But they should normally normal situation, the interest is almost seven and a half percent or whatever. So it’s better than you get in the bank. But normally, it’s, you know, it’s not because of this kind of situation. So I’m wondering if they’re gonna be some sort of forgiveness from the IRS side, that they’re not going to be sending it out as fast as they normally would. But I’m glad you got your refund.
Caller 41:37
Yes me too. Thank you.
Dr. Friday 41:40
Thank you. Bye. Great question, actually. Alright, let’s go to Mike. Mike in Franklin, my old hometown. Hey, Mike.
Caller 41:48
Hey. Good afternoon Dr. Friday thank you for taking my call. I’m calling in regards to this is about my ex-wife. She indicated to me She received her stimulus check, it was only $75 instead of the $600 that is supposed to have been. My wife does it always does that sound like possible?
Dr. Friday 42:17
Not necessarily. I mean, it’s certainly possible but the original amount should have been $1200 dollars each of you. But again, if she files. Now, you said ex-wife so I’m assuming she files her own tax returns correct?
Caller 42:29
Yes, and has done so for a number of years.
Dr. Friday 42:32
Okay. So you have did not just get divorced, correct. Okay. So the difference would be and it’s not your but it would matter on maybe she earns more than $75,000 a year.
Caller 42:49
No, she doesn’t.
Dr. Friday 42:52
Well, that’s what the IRS is thinking or could someone be claiming her as a dependent?
Caller 43:00
Should not be that situation. Who works. She also said she filed her taxes in February and was looking for a $5,000 actually refund. And she has not received that yet.
Dr. Friday 43:21
Did she put them in the mail? Or did she do them electronically?
Caller 43:27
Oh, I’m not 100% sure, probably electronically, most likely.
Dr. Friday 43:33
So she did it electronically there should be something at “Where’s my refund” @irs.gov. I’ve got two cases where they’re holding them. They just say that we’re reviewing the paperwork, but it should tell her something they’ve received them. Your refund should be on this day like the woman that called a little earlier said what she was supposed to according to the website, get it on the 21st and it took them too long to get it. So she should be able to look if she felt like trying That’d be the first thing I would double-check.
Dr. Friday 44:05
Yep. irs.gov and then click on the button that says Where’s My Refund? That way she can at least track that as far as the stimulus, if she filed their taxes back, you know, depending on when she filed them, but if she filed them in March or something like that, they probably based it on her 2019 tax return. Again, maybe she took a distribution out somehow maybe she sold some property and it kicked it into a higher bracket. I don’t know her situation, but to only get $75 in a stimulus would mean that she had to have almost made $100,000 that year. For whatever reason. I don’t know her situation, but that would be what I’m guessing.
Caller 44:52
If she made that kind of money Dr. Friday I’d still be married to her. [laughter]
Dr. Friday 44:57
I had a feeling this conversation was going to go that way., I appreciate the phone call. Thank you. All right, thank you for calling today. If you have questions, hopefully, my phone lines are open 615-367-0819, that’s my direct number two my office. You can also email friday@drfriday.com. We are only going to be able to do extensions at this point. If you need help with an extension, we will do our best to help you get that filed and then we can help file taxes but we will not be able to file tax returns we’re pretty much full at this time. If you have questions, call 615-367-0819 and you can leave a message or we’ll take your calls also. If you’re not sure who I am, and you’ve got a question about who this crazy person is you can go to Drfriday.com that’s my website and we can take your calls talk and you can find out more about who I am and what we need to do. Other than that, guys, we’re in good shape. Hopefully, you guys are having a wonderful Saturday. Don’t forget to do an extension or file your taxes, vitally important to make sure everything is where you want it. Hope you have a wonderful Saturday. We had a great show. I will be here again to live next Saturday taking your calls. It will be after-tax season so who knows what we’ll be able to talk about.