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Taxes — this is typically a confusing topic with complex twists and turns in just about every aspect of it. In our Blog, we provide articles, infographics, and more to help educate every person on the inner workings of the tax industry — whether that may be on new tax forms, tax law, opinion pieces, new IRS/state taxing authority developments, and so forth.
- Five Tax Credits Taxpayers Can Take Advantage Of
2023 Tax Credit Updates When it comes to managing your taxes, tax credits can be a powerful tool in reducing your overall tax burden. By qualifying for one or more tax credits, you can lower the amount of taxes you owe or even receive a refund. It’s important to note… Read more: Five Tax Credits Taxpayers Can Take Advantage Of - What Triggers IRS Audits in 2023? Understanding the Factors That Increase Your Risk
The IRS conducts examinations of certain tax returns in order to ascertain compliance with tax laws. Usually, only a small percentage of tax returns are audited. In 2022, the agency audited 3.8 out of every 1,000 income returns, which is a rate of 0.38%. Even though most taxpayers are unlikely… Read more: What Triggers IRS Audits in 2023? Understanding the Factors That Increase Your Risk - What is Considered Taxable and Non-Taxable Income?
When it comes to taxes, one thing is certain: income matters. From the money you earn through hard work to the unexpected sources that come your way, understanding what income is taxable is essential. Whether it’s your wages, salaries, royalties, commissions, rent, fees, or tips, these familiar sources of income… Read more: What is Considered Taxable and Non-Taxable Income? - How to Maximize Your Savings with Tax Deductions
Every year, when taxpayers get ready to file their taxes, one of the first things they should do is understand all the ways they can lower their tax bills, such as tax deductions and tax credits. There are widely known tax deductions, such as business travel and vehicle expenses, as… Read more: How to Maximize Your Savings with Tax Deductions - Can the IRS Take Social Security Benefits for Back Taxes?
Did you know the IRS has the authority to seize Social Security checks to satisfy outstanding tax liabilities? If you’re facing back tax debt, protecting your Social Security benefits from IRS seizure is a crucial step in tax debt resolution. But don’t panic – the IRS follows a specific process… Read more: Can the IRS Take Social Security Benefits for Back Taxes? - IRS Collection Standards Explained
Introduction to IRS Collection Standards Updated information to reflect 2023 IRS standards. Did you know the IRS utilizes Collection Financial Standards to determine the financial capability of a taxpayer? These standards help determine the suitable collection method to recover the tax debt. The Collection Financial Standards are applied to various… Read more: IRS Collection Standards Explained - Navigating Tax Season: What is an Offer in Compromise (OIC)?
Now that tax season has ended, many hard-working Americans may be overwhelmed by a hefty tax bill. Fortunately, the IRS offers an Offer in Compromise (OIC) option, which allows taxpayers to settle their tax debts for less than the total amount owed. However, qualifying for an OIC is not always… Read more: Navigating Tax Season: What is an Offer in Compromise (OIC)? - Top Tax Planning Tips for 2023: Navigating Financial Benefits in Challenging Times
With the lingering impacts of the coronavirus pandemic, it’s essential to stay informed about financial benefits that can alleviate some of the burdens during these challenging times. The changing tax landscape requires a fresh approach to tax planning for 2023. Our updated blog post discusses three key tax planning tips… Read more: Top Tax Planning Tips for 2023: Navigating Financial Benefits in Challenging Times - What to do if You Miss the Deadline to File Your 2022 Tax Return
Tax season can be stressful for anyone, but it can be particularly challenging for 1099 workers and taxpayers over the age of 30 with bills, kids, and other responsibilities. Unfortunately, missing the deadline to file your 2022 tax return can have dire consequences, including IRS penalties and interest, back taxes,… Read more: What to do if You Miss the Deadline to File Your 2022 Tax Return - Tax Debt Relief: What to Do if You Owe Back Taxes
What are the Consequences of Back Tax Debt? When it comes to tax debt, procrastination can have serious consequences. Unfortunately, many people fail to take the time to do their taxes or, worse, let them lapse and end up dealing with the repercussions, which could involve legal proceedings. Understanding the… Read more: Tax Debt Relief: What to Do if You Owe Back Taxes - When Should you Hire a Tax Attorney?
Tax season can be a stressful time for anyone. With all of the paperwork, deadlines, and changing regulations, it can be challenging to keep up with everything. It can be even more difficult if you are facing a complicated legal situation, such as an Internal Revenue Service (IRS) audit or… Read more: When Should you Hire a Tax Attorney? - How to Choose the Right Tax Professional as a 1099 Independent Contractor
When it comes to filing taxes as a 1099 contractor, it’s essential to choose the right tax professional to ensure that you get the most out of your taxes and don’t end up owing Uncle Sam more than you should. It’s always a good idea to stay on top of… Read more: How to Choose the Right Tax Professional as a 1099 Independent Contractor - Tax Payers Guide to Tax Season 2023
The 2023 tax season is upon us. Tax preparation starts as early as January 3rd, 2023 however, the IRS typically makes the official announcement that they will start accepting returns by the end of January. Individuals and owner-operators must file their taxes or request an extension by the deadline of… Read more: Tax Payers Guide to Tax Season 2023 - What Taxes Should Nonresident Aliens File?
A nonresident alien is an individual who is not a U.S. citizen and does not have a green card or passed the substantial presence test. For a nonresident alien, taxes are charged differently than a U.S. citizen. Depending upon the nature of the employment conducted by the nonresident in the… Read more: What Taxes Should Nonresident Aliens File? - The Difference Between a Tax Haven and a Tax Shelter
A tax haven is a country, state or region that charges substantially low or negligible taxes to corporations and individuals. Mostly used by the wealthy and large corporations, tax havens reduce the tax liability of a person or a business in the country in which they reside or operate. On… Read more: The Difference Between a Tax Haven and a Tax Shelter - Inheritance Tax Versus Estate Tax
What is the Difference Between Inheritance Tax and Estate Tax? The property and assets that a person leaves behind after death may attract estate tax and inheritance tax. How much inheritance or estate tax is charged depends on the state in which you reside, and the value of the property/money… Read more: Inheritance Tax Versus Estate Tax - Do Artists Need to Pay Taxes on Royalties?
Artists often have multiple income sources and usually, one of them is royalty. Royalties are considered earned income by the IRS and attract taxes the way ordinary income does. If you are an artist such as an author, musician, songwriter, or singer; your income from royalties is taxable. How much… Read more: Do Artists Need to Pay Taxes on Royalties? - Native American Tribe Taxation
Taxes are complicated when it comes to Native American tribes and their members because of the complexities in the Indian law and the federal tax law. The treaties between the tribes and the U.S., some of which go back centuries, add to the confusion. If you are a Native American… Read more: Native American Tribe Taxation - How to Prepare for An Audit
An audit is never pleasant, but you can make it simpler and smoother by preparing for it. Essentially, audits are conducted to ensure compliance and in no way indicate that you did something illegal. The IRS doesn’t come to you with proof of any ill-doing. They may have seen a… Read more: How to Prepare for An Audit - How are Authors Taxed?
Authors don’t usually think of themselves as entrepreneurs; however, the IRS treats them the same as a small business. Whether you are selling the occasional eBook on Kindle or have bestsellers to your name, the IRS expects you to treat your writing as a business if you earn income from… Read more: How are Authors Taxed? - Why Contractors Often Have Tax Debts
Unlike in an employer-employee relationship where the employer withholds taxes from the employee’s paycheck and forwards it to the IRS, independent contractors are required to determine taxes on their own and pay them. Many times, independent contractors are not aware that they are in tax debt until they receive an… Read more: Why Contractors Often Have Tax Debts - How Tax Debt and Credit Overlap
It is not always that taxpayers get into tax debt because they do not pay their full tax liability. Sometimes, claiming false tax credits can cause a tax debt. Though credits reduce the overall tax liability of a taxpayer, each credit has qualifying criteria that need to be met. Claiming… Read more: How Tax Debt and Credit Overlap - The IRS Joins Law Enforcement Agencies to Enforce Sanctions on Russia
The IRS’ Criminal Investigation (CI) has been asked to provide expertise and intelligence in order to assist efforts to enforce sanctions on Russia. The IRS will be working alongside other law enforcement agencies in order to investigate cybercriminals, Russian oligarchs and those who facilitate illegal movement of money/assets on their… Read more: The IRS Joins Law Enforcement Agencies to Enforce Sanctions on Russia - Tax Debt Interest Increases On April 1, 2022
The IRS made an announcement in February this year that the interest the agency charges on tax debt will increase beginning April 1, 2022. This directly impacts taxpayers that pay less than what they owe in taxes this tax season, as they will be paying more in back taxes. Along… Read more: Tax Debt Interest Increases On April 1, 2022 - Return Preparer Fraud Alert: Instant Tax Service Founder Found Guilty of Tax Fraud
Tax scammers are not limited to anonymous entities operating from far. Many times, they can be somebody you hire the services of, such as a return preparer, owner of a company, or in this case, the founder of a tax return preparation service. Instant Tax Service Scam Fessum Ogbazion of… Read more: Return Preparer Fraud Alert: Instant Tax Service Founder Found Guilty of Tax Fraud - Changes in Payment Apps Reporting to the IRS & How it Affects Users
Payment platforms such as Venmo, PayPal, CashApp etc. are legally required to report certain financial transactions to the IRS and taxpayers. If financial transactions using a third party payment network exceeds a certain limit, the payer and the receiver of the pay may receive Form 1099-K. What is Form… Read more: Changes in Payment Apps Reporting to the IRS & How it Affects Users - How does the U.S. tax system differ from Europe’s?
Many people assume that the taxes in the U.S. are more severe than in other developed countries. However, facts prove that the US has a much more relaxed tax system, and a tax scale that is far lower than most European countries. The Tax Foundation, a leading independent tax policy… Read more: How does the U.S. tax system differ from Europe’s? - Taxpayer’s Guide to Tax Season 2022
The tax season began on January 24th, 2022, 17 days earlier than last year. This tax season will be especially challenging for both the IRS and taxpayers due to the pandemic. Though the IRS said that it had been making preparations for the 2022 tax season for months, there could… Read more: Taxpayer’s Guide to Tax Season 2022 - NFT Creators & Taxes
Non-fungible token (NFT) is a unique digital asset that can be sold or traded. An NFT is recorded, stored, and transferred on a blockchain, which is a kind of digital ledger, and can be purchased or sold using cryptocurrency or legal tender currency such as the U.S. dollar. In… Read more: NFT Creators & Taxes - California May Double Its Taxes – What You Need to Know
California is considering increasing its taxes by $12,250 per household. This would double the taxes currently being paid by taxpayers whose income source is in California. The proposal to increase taxes is made to fund single-payer healthcare system and healthcare cost control system. In California, both residents and non-residents are… Read more: California May Double Its Taxes – What You Need to Know - IRS Extends Production Tax Credit and Investment Tax Credit
With keeping in view the disruptions caused by the Coronavirus pandemic, the IRS has extended the Continuity Safe Harbor applicable to renewable energy production tax credit (PTC) and investment tax credit (ITC). This gives renewable energy developers more time to complete their projects. The IRS notice also provides a 3½… Read more: IRS Extends Production Tax Credit and Investment Tax Credit - Coronavirus Delaying, But Also Informing, IRS Reform Proposal
The coronavirus pandemic has caused the IRS to delay its report to the Congress regarding reforms in the agency. Presently, the IRS has its hands full with sending out coronavirus stimulus checks, processing returns, and issuing refunds. A few weeks back, the tax agency had to recall 10,000 employees from… Read more: Coronavirus Delaying, But Also Informing, IRS Reform Proposal - IRS Clarifies ERTC Availability
Employee Retention Tax Credit (ERTC), or Employee Retention Credit, is a refundable tax credit that allows employers to reduce their employment taxes. Considering the struggle many small and medium-sized businesses are facing due to the Coronavirus pandemic, this tax credit is an effort to provide some financial relief to them.… Read more: IRS Clarifies ERTC Availability - IRS Eases Tax Enforcement During Shutdown
The IRS has announced that the agency will suspend most collection activities starting March 30, 2020, till July 15, 2020. The IRS is struggling with managing many of its essential services during the coronavirus pandemic. With the tax filing extended until July 15, 2020, the IRS will need to concentrate… Read more: IRS Eases Tax Enforcement During Shutdown - PPP Loan Developments
The Paycheck Protection Program (PPP) of the U.S. Small Business Association (SBA) is a loan that helps businesses retain their employees during the coronavirus pandemic. SBA is forgiving loans of those employers who keep all their employees on the payroll for eight weeks and use the money for payroll, rent,… Read more: PPP Loan Developments - Why Stimulus Checks Won’t Be Taxed But Unemployment Will Be
Stimulus checks have reached millions of Americans and more are underway. Most people are spending this money on essentials such as food and paying bills. The question that many of those who received stimulus payments are asking is – Are these stimulus checks taxable? The answer is no. Stimulus payments… Read more: Why Stimulus Checks Won’t Be Taxed But Unemployment Will Be - Tax Avoidance Case Gets Supreme Court Review
The U.S. Supreme Court agreed to hear the case of CIC Services vs. the IRS, where CIC Services had challenged the IRS notice 2016-16 on its micro-captive transactions where the IRS had identified certain micro-captive transactions as having potential for tax evasion or avoidance. The IRS had also labelled these… Read more: Tax Avoidance Case Gets Supreme Court Review - Tax Season: Protect Against Fraudsters
Due to the coronavirus pandemic, even taxpayers who usually filed a paper return are now forced to file it digitally. Though e-filing is faster and more convenient than paper filing, those who are not aware of tax scams such as identity theft are more vulnerable than ever when filing digitally.… Read more: Tax Season: Protect Against Fraudsters - Paying Tax Debt with Credit Cards is an Option
The deadline to file and pay federal income taxes has been extended to July 15, 2020 due to the coronavirus outbreak. With this extension, those who have not yet filed may consider the options they have to pay their taxes. Taxpayers can pay their tax bill using debit card or… Read more: Paying Tax Debt with Credit Cards is an Option - New Taxes to Pay for Stimulus
The Economic Impact Payment, also called stimulus payments, are automatically paid to eligible US residents through direct deposit and the mail. The IRS has started to mail $1,200 stimulus checks. According to the Taxpayer Advocate Service, “The IRS is playing a central role in administering the Coronavirus Aid, Relief, and… Read more: New Taxes to Pay for Stimulus - Standard Mileage Rates for 2020 Explained
The IRS announced in a notice that the optional 2020 standard mileage rate for business use will be down to 57.5 cents per mile from the earlier 58 cents per mile, from January 1, 2020. This will include costs of operating an automobile (including cars, vans, pickups, and panel trucks)… Read more: Standard Mileage Rates for 2020 Explained - How the IRS Believes the CARES Act Provides for an Individual
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was introduced to counter the economic damage caused by the coronavirus pandemic. This $2 trillion stimulus package focuses on financially supporting individuals, businesses, state and local governments, workers, independent contractors, and hospitals. The package also includes relief for savings and retirement… Read more: How the IRS Believes the CARES Act Provides for an Individual - 3 Coronavirus Tax Credits IRS Pays Before Tax Time
There is uncertainty about how long the coronavirus will keep businesses paralyzed and that uncertainty is greatly impacting businesses. Many businesses struggling to survive will need to cut costs to stay afloat, which can mean reductions in employees. In order to help businesses cope, the IRS has introduced three tax… Read more: 3 Coronavirus Tax Credits IRS Pays Before Tax Time - IRS Releases State-by-State List of Stimulus Payments
Millions of Americans have received their stimulus checks. In the first four weeks of the program, approximately 130 million individuals received stimulus payments worth more than $200 billion. California received the largest payment followed by Texas. Though most taxpayers automatically receive their stimulus check, but if you think you are… Read more: IRS Releases State-by-State List of Stimulus Payments - Municipal Bonds Threatened
The coronavirus is not only impacting our health and lifestyle, but also our finances. With the pandemic still raging on, those who invested in municipal bonds may be uncertain about how much return they would receive for their investment. Investors use many ways to increase wealth and save taxes. Since… Read more: Municipal Bonds Threatened - IRS Recalls Thousands, Requires Them to Obtain Facemasks
The IRS is calling back its employees for work but without providing them with protective masks against the coronavirus. The agency has 74,454 full-time employees (as of 2019), out of which they need about 10,000 to be back in office for certain critical services. It’s a faint relief that the… Read more: IRS Recalls Thousands, Requires Them to Obtain Facemasks - General Mills Tax Refund Case
General Mills, in its case in the Claims Court against the IRS, alleged that the IRS erroneously collected from it close to $6 million in taxes during 2002-2006 tax years due to miscalculation of the duration for which interest was applicable. The IRS that long back acknowledged its mistake and… Read more: General Mills Tax Refund Case - 9 Reasons to Stop Doing Your Own Taxes
Doing your own taxes might seem tempting. You’d save tax preparer’s fee; and with a tax software, you can escape doing all the difficult paperwork. It’s a happy picture, except that even a minor human error can land you in big trouble. Change is one big factor that impacts your… Read more: 9 Reasons to Stop Doing Your Own Taxes - New Taxes to Pay for Stimulus
The Economic Impact Payment, also called stimulus payments, are automatically paid to eligible US residents through direct deposit and the mail. The IRS has started to mail $1,200 stimulus checks. According to the Taxpayer Advocate Service, “The IRS is playing a central role in administering the Coronavirus Aid, Relief, and… Read more: New Taxes to Pay for Stimulus - Ultimate Tax Planning Guide
The past few years brought in many big changes in taxes: new tax forms, new tax credits, new tax rules, and changes in tax brackets. Many taxpayers are confused about how the changes impact them. Thankfully, the tax filing and payment deadline has been extended to July 15, 2020, which… Read more: Ultimate Tax Planning Guide
