Failing to report income to the IRS can have serious consequences, including penalties, interest charges, and even an audit. The IRS has a variety of methods to detect unreported income, including: T-account analysis: This method compares sources of cash on the left and cash expenditures on the right to determine if taxpayers have sufficient funds … Read more
The Internal Revenue Service (IRS) has the authority to audit the tax returns of deceased individuals, but the time frame for such audits is limited. Understanding the statute of limitations for IRS audits is crucial for estate executors and beneficiaries to ensure proper handling of the deceased’s tax affairs. Statute of Limitations for IRS Audits … Read more
The American Rescue Plan Act of 2021 authorized the third round of Economic Impact Payments (EIP3) as a form of financial relief to eligible individuals and families amidst the ongoing COVID-19 pandemic. This payment, also known as the third stimulus check, differs from the previous two rounds in several key aspects, including eligibility criteria, payment … Read more
The prospect of facing an IRS tax levy can be daunting, as the government has the authority to seize your property to satisfy unpaid tax debts. However, there are proactive steps you can take to protect your assets from the IRS’s reach. Understanding the strategies and legal options available can empower you to safeguard your … Read more
With the ongoing economic uncertainties, many Americans are eagerly seeking information about potential stimulus checks. Rumors of a fourth stimulus payment have been circulating, particularly regarding a supposed payment scheduled for July. However, it’s crucial to separate fact from fiction to avoid falling prey to misinformation. This comprehensive analysis delves into the available information to … Read more
Tax season is a stressful time for many people, but it doesn’t have to be. Filing your taxes early can save you time, money, and stress. Here are five reasons why you should consider filing your taxes early: 1. Get Your Refund Sooner If you’re expecting a refund, filing your taxes early is the best … Read more
The third round of Economic Impact Payments, authorized by the American Rescue Plan Act of 2021, is being distributed to eligible individuals and families. The IRS is using data already in its systems to send the payments, and the method of payment will depend on the taxpayer’s preferred method on file. Direct Deposit Taxpayers who … Read more
As a business owner, navigating the complexities of tax filing can be a daunting task. This is especially true for owners of Limited Liability Companies (LLCs), who may wonder if they can file their LLC and personal taxes separately. This article aims to provide a comprehensive understanding of the tax filing options available to LLC … Read more
The IRS has sent you an LT11 Notice or Letter 1058 because you have unpaid taxes. This notice is your final warning before the IRS takes action to collect the debt, which may include seizing your property or levying your wages. What to Do When You Receive an LT11 Notice or Letter 1058 Act immediately. … Read more
As tax season approaches, many taxpayers are wondering if the IRS will be auditing more returns this year. The answer is yes, but the increase in audits will be focused on high-income earners, partnerships, and corporations. The IRS is also planning to increase its scrutiny of tax preparers who help clients claim the Earned Income … Read more