The Internal Revenue Service (IRS) plays a crucial role in enforcing the nation’s tax laws. One of its primary tools for ensuring compliance is conducting audits, which involve examining tax returns to verify their accuracy and completeness. This article delves into the IRS’s audit practices, providing insights into the number of audits conducted, the factors … Read more
In the realm of accounting, the concepts of accrual and deferral play a crucial role in ensuring accurate financial reporting. Accrual accounting recognizes revenue and expenses when they are earned or incurred, regardless of the timing of cash receipts or payments. Deferral accounting, on the other hand, postpones the recognition of revenue or expenses until … Read more
The modern employment landscape has witnessed a surge in the prevalence of 1099 employees, also known as independent contractors. This shift towards contingent work arrangements has brought forth both opportunities and challenges for individuals seeking flexible and autonomous work options. However, venturing into the realm of 1099 employment necessitates a thorough understanding of the inherent … Read more
Taxpayers who have yet to receive their 2021 tax refund may be wondering about the reasons for the delay. This guide will explore potential causes and provide guidance on how to check the status of your refund and resolve any issues. Common Reasons for Refund Delays Errors on the tax return: Mistakes or omissions on … Read more
The year 2021 brought unprecedented challenges, including the COVID-19 pandemic and natural disasters like the winter storms in Texas. In response, the Internal Revenue Service (IRS) and the Treasury Department extended tax filing and payment deadlines to provide relief to taxpayers. This article provides a comprehensive overview of the tax deadline extensions in 2021, including … Read more
Understanding Your Tax Obligations as a Former Green Card Holder As a green card holder, you are generally required to file a U.S. income tax return and report worldwide income, regardless of where you reside. However, if you surrender your green card or the U.S. Citizen & Immigration Service (USCIS) determines that you have abandoned … Read more
What is TurboTax Refund Advance? TurboTax Refund Advance is a loan provided by First Century Bank, N.A., Member FDIC, that allows you to access up to $4,000 of your expected tax refund before the IRS issues it. This can be a great way to get cash quickly if you need it for unexpected expenses or … Read more
Hiring your child as an employee for your family business can offer significant tax benefits for both parties. This guide will delve into the intricacies of hiring your child, exploring the eligibility criteria, tax implications, and potential pitfalls to ensure you maximize these benefits while adhering to IRS regulations. Eligibility Criteria To qualify for the … Read more
Checks remain a widely used payment method, despite the rise of digital transactions. However, banks have a responsibility to safeguard their customers and the financial system from fraud. To ensure the legitimacy of checks, banks employ a rigorous verification process before cashing or depositing them. Verification Procedures Banks typically verify checks through a combination of … Read more
When applying for a mortgage, lenders will typically consider both your gross and net income to determine your eligibility and loan amount. Gross Income Gross income refers to your total earnings before any deductions, such as taxes, insurance, or retirement contributions. Lenders use gross income as a starting point to assess your ability to repay … Read more