Robby The Internal Revenue Service (IRS) communicates with taxpayers through notices and letters for various reasons. These correspondences provide important information regarding tax-related matters and require prompt attention. Ignoring or discarding IRS mail can lead to severe consequences, including penalties and interest charges. Reasons for IRS Notices and Letters The IRS sends notices and letters for … Read more
Effective October 1, 2023, the Indian government has implemented significant changes to the Tax Collected at Source (TCS) regulations, particularly impacting foreign remittances under the Liberalised Remittance Scheme (LRS). This guide provides a detailed analysis of the new TCS rules, their applicability, and strategies to minimize the impact on financial transactions. Understanding Tax Collected at … Read more
An Offer in Compromise (OIC) is a settlement agreement between a taxpayer and the Internal Revenue Service (IRS) that allows the taxpayer to pay less than the full amount of taxes owed. The IRS may consider an OIC if the taxpayer can prove that they are unable to pay the full amount of their tax … Read more
In today’s digital age, it’s easy to accumulate a mountain of electronic and paper documents, including cell phone bills. While some documents, like wills and birth certificates, should be kept indefinitely, others, like cell phone bills, can be discarded after a certain period. This guide will help you determine how long you should keep your … Read more
Receiving a Form 1099-C from a lender can be a daunting experience, as it signifies the cancellation of a debt and the potential for tax liability. However, there are certain strategies you can employ to minimize or even eliminate the tax burden associated with debt settlement. This guide will delve into the intricacies of Form … Read more
In 2021, the American Rescue Plan Act authorized a third round of Economic Impact Payments, commonly known as stimulus checks, to provide financial relief to individuals and families during the COVID-19 pandemic. The IRS issued over 175 million payments totaling more than $400 billion. However, some eligible individuals may still be wondering why they have … Read more
Taxpayers eagerly awaiting their refunds may encounter delays this year due to various factors. This article explores the reasons behind these delays and provides guidance on what to do if your refund is taking longer than expected. Reasons for Refund Delays 1. Errors or Incomplete Returns Mistakes or missing information on your tax return can … Read more
The Internal Revenue Service (IRS) imposes penalties on taxpayers who fail to meet their tax obligations, such as filing their tax returns on time, paying their taxes in full, or providing accurate information on their returns. These penalties can add up quickly, so it’s important to understand your rights and options if you believe you … Read more
An IRS audit is a daunting experience, and it’s understandable to feel overwhelmed or even tempted to ignore it. However, failing to respond to an IRS audit can have severe consequences, potentially leading to significant financial penalties and legal issues. Consequences of Ignoring an IRS Audit Automatic Assessment of Additional Taxes and Penalties: The IRS … Read more
As the tax filing season approaches, it’s crucial to stay informed about any changes in tax laws that may affect your tax liability. This guide will provide a comprehensive overview of the tax changes implemented in 2022, helping you navigate the complexities of the tax code and plan your finances accordingly. Income Tax Rates and … Read more