Robby Wage garnishment, a severe consequence of unpaid taxes, occurs when the Internal Revenue Service (IRS) seizes a portion of an individual’s wages to settle outstanding tax debts. This measure is employed when taxpayers fail to fulfill their tax obligations despite receiving multiple notices and demands for payment. Understanding the intricacies of IRS wage garnishment is … Read more
With the 2021 tax filing season approaching, many individuals may wonder if they should wait until the last minute to file their taxes. While filing early has its advantages, there are also potential benefits to waiting. This article will explore the pros and cons of waiting to file taxes in 2021, providing insights to help … Read more
Selling a home can be a lucrative endeavor, but it’s crucial to be aware of the potential tax implications, particularly capital gains tax. This tax is levied on the profit you make from the sale of an asset, including real estate. However, there are several strategies you can employ to minimize your capital gains tax … Read more
Yes, you can claim dental expenses on tax in Australia if they meet specific criteria set by the Australian Taxation Office (ATO). Eligible Dental Expenses The ATO allows you to claim the following dental expenses: Payments to dentists, orthodontists, licensed dental mechanics, opticians, and optometrists Dental procedures directed by a doctor Prescribed medical aids Artificial … Read more
Prepaying business expenses can be a strategic move for businesses seeking to optimize their tax deductions. However, the Internal Revenue Service (IRS) has established specific rules governing the deductibility of prepaid expenses, including the 12-month rule. This article delves into the intricacies of the 12-month rule, providing a comprehensive understanding of its application and implications … Read more
Navigating the complexities of tax liabilities and penalties can be overwhelming. However, the Internal Revenue Service (IRS) offers various programs to assist taxpayers in resolving their tax issues, including penalty abatement and tax forgiveness. This comprehensive guide will delve into the concept of IRS one-time forgiveness, exploring its eligibility criteria, application process, and potential savings. … Read more
Understanding State Tax Obligations State income taxes are levied by 43 states in the United States, with each state having its own set of tax laws and regulations. As a taxpayer, it’s crucial to understand your state’s tax requirements to avoid unexpected tax liabilities. Reasons for Owing State Taxes There are several reasons why you … Read more
Understanding the Risk While the chances of facing an IRS audit are relatively low, there are certain factors that can increase your risk, such as: Reporting a net business loss Claiming excessive deductions Making careless mistakes on your tax return Filing late or not filing at all Minimizing Your Risk To minimize your chances of … Read more
Navigating the complexities of the tax system can be daunting, and sometimes you may need to speak with an IRS agent to clarify issues or resolve specific tax-related concerns. This guide provides detailed instructions on how to contact an IRS agent in 2023, ensuring a smooth and efficient interaction. Contacting the IRS via Phone 1. … Read more
Understanding Document Retention Requirements for 401(k) Plans The Employee Retirement Income Security Act (ERISA) mandates that employers retain detailed 401(k) plan documents for specific periods to ensure compliance and protect plan participants’ interests. These documents provide a comprehensive record of plan operations, transactions, and employee activity. General Retention Period As a general rule, 401(k) plan … Read more