Retirement planning is a crucial aspect of financial well-being. Employer-sponsored retirement plans, such as 401(k)s and 403(b)s, offer tax advantages and the potential for long-term savings growth. Roth 401(k)s and Roth 403(b)s are specialized types of these plans that provide unique tax benefits. This comprehensive guide will delve into the key differences between Roth 401(k)s … Read more
The question of who bears the greatest tax burden in the United States has been a subject of ongoing debate. This comprehensive analysis delves into the latest data from the Internal Revenue Service (IRS) and the National Taxpayers Union (NTU) to provide a detailed understanding of the distribution of income tax payments across various income … Read more
The Internal Revenue Service (IRS) generally has 10 years to collect unpaid taxes, penalties, and interest. This 10-year period is known as the Collection Statute Expiration Date (CSED). After the CSED expires, the IRS can no longer pursue collection activities for the specified tax debt. Exceptions to the 10-Year Rule There are certain situations where … Read more
The Internal Revenue Service (IRS) has issued a stern warning to taxpayers about a recent surge in IRS-themed text message scams designed to pilfer personal and financial information. These scams, known as “smishing,” have proliferated in recent months, prompting the IRS to urge vigilance and caution. Modus Operandi of Smishing Scams Smishing scams typically involve … Read more
Filing taxes can be a daunting task, and receiving a notice from the IRS that your refund is under review can be even more stressful. Understanding why returns are flagged and what the review process entails can help alleviate anxiety and prepare you for potential outcomes. This comprehensive guide will delve into the reasons behind … Read more
Yes, you can pay your spouse to avoid tax, but there are strict rules that must be followed. The Internal Revenue Service (IRS) allows you to deduct the salary you pay your spouse as a business expense, but only if your spouse is a bona fide employee of your business. This means that your spouse … Read more
Understanding Form 2210 Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, is a tax form used to calculate and report any penalty you may owe for underpaying your estimated taxes throughout the year. The IRS typically calculates this penalty for you, so filing Form 2210 is generally not necessary. However, you can … Read more
Understanding the Interplay of Child Tax Dependency and Filing Requirements The intersection of child tax dependency and income tax filing requirements can be a complex matter, particularly for parents and guardians navigating the nuances of the tax code. This comprehensive guide will delve into the relevant regulations and provide clear answers to the question of … Read more
Securing a credit card can be a crucial step in building financial stability and convenience. However, the application process often requires applicants to provide proof of income to demonstrate their ability to repay the debt. This article delves into the intricacies of income verification for credit card applications, exploring the reasons behind this requirement, the … Read more
Tax evasion, a serious offense that undermines the integrity of a nation’s financial system, involves the deliberate non-payment or underpayment of taxes. This comprehensive guide delves into the definition, consequences, and preventive measures associated with tax evasion, empowering individuals and businesses to fulfill their tax obligations responsibly. Defining Tax Evasion Tax evasion encompasses a range … Read more