Understanding the Third Stimulus Check In 2021, the American Rescue Plan Act authorized a third round of Economic Impact Payments, commonly known as stimulus checks, to provide financial relief during the COVID-19 pandemic. These payments were distributed to eligible individuals and families to help offset the economic impact of the pandemic. Eligibility Criteria To be … Read more
Every year, millions of Americans eagerly anticipate the arrival of their tax refunds, a sum of money that represents the difference between the amount of federal income tax withheld from their paychecks throughout the year and their actual tax liability. While the prospect of receiving a refund can be exciting, it’s important to understand the … Read more
Understanding Tax Evasion Tax evasion is a serious offense that involves intentionally failing to report or pay taxes owed to the government. It is a federal crime that can result in severe penalties, including fines and imprisonment. Elements of Tax Evasion To prove tax evasion, the prosecution must establish that the taxpayer: Willfully failed to … Read more
The Internal Revenue Service (IRS) recognizes that financial hardships can occur, and may adjust its collection actions accordingly. A financial hardship, in the context of IRS collections, refers to a situation where an individual is unable to pay their tax debt or can only do so with extreme difficulty while still meeting their basic living … Read more
Yes, you can gift $100,000 to your daughter without incurring a gift tax. Gift Tax Basics The gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The gift tax is designed to prevent wealthy individuals from avoiding estate taxes … Read more
The Internal Revenue Service (IRS) imposes a gift tax on individuals who give gifts exceeding a certain amount in a calendar year. The gift tax is designed to prevent individuals from avoiding estate taxes by giving away their assets before they die. Gift Tax Exclusion The IRS provides an annual gift tax exclusion that allows … Read more
The Internal Revenue Service (IRS) conducts audits to ensure that taxpayers are accurately reporting their income and expenses. Schedule C is a form used by self-employed individuals to report business income and expenses. There are several factors that can trigger an audit of a Schedule C. Common Triggers for a Schedule C Audit High expenses … Read more
Taxpayers eagerly awaiting the processing of their paper tax returns can refer to the Internal Revenue Service (IRS) website for the latest updates on the agency’s progress. This comprehensive guide will provide an overview of the current processing status for various tax forms, including individual and business returns, as well as other forms and correspondence. … Read more
Navigating the TurboTax Pricing Maze TurboTax offers a range of tax filing options, including a free edition designed for simple tax returns. However, some users encounter unexpected charges despite selecting the Free Edition. This guide will delve into the potential reasons for these charges and provide clear instructions on how to remove them. Identifying the … Read more
Navigating an IRS audit can be a daunting experience, but with the right strategies and preparation, you can emerge victorious. This comprehensive guide will equip you with the knowledge and techniques to minimize the financial impact, prevent further scrutiny, and achieve the best possible outcome. Pre-Audit Preparation: Understanding the Process and Your Rights 1. Familiarize … Read more