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3 10 8 Information Returns ProcessingInternal Revenue

3 10 8 Information Returns ProcessingInternal Revenue

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What is a W-9 tax form? What is a W-9 tax form?

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nick rosado tax attorney with your quick tax tip as i've mentioned if the irs prepares your tax return the return it prepares for you will be as unfavorable as possible this means that any potentially taxable income for which the irs receives an information return will be included in your income it doesn't matter if some of that income may not be taxable for example if you had an ira distribution but rolled that distribution into another retirement account within 60 days diary distribution would generally not be taxable or if you sold your primary residence you could potentially exclude up to 250 000 or 500 000 of gain depending on your filing status but in either of those situations the irs will include all distributions in the case of the ira distribution or the full sales price in the case of the home sale in taxable income this can easily lead to tax bills in the hundreds of thousands of dollars even though there should be no tax liability

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