An IRS audit is a review or examination of an individual’s or organization’s financial information and accounts to ensure that the reported tax amount is accurate and that the information is reported correctly according to tax laws. Reasons for Selection The selection for an audit does not necessarily indicate a problem. The IRS employs various … Read more
The likelihood of being audited by the IRS is relatively low, with only 0.63% of individual tax returns selected for audit in 2020, or fewer than one out of every 100 returns. This represents a significant decrease from the spike in audit rates observed in 2010. Factors that Increase the Risk of an Audit While … Read more
In the digital age, social media has become an integral part of our lives. We share our thoughts, experiences, and even our financial information on these platforms. But what many people don’t realize is that the Internal Revenue Service (IRS) is also monitoring social media. IRS Monitoring of Social Media The IRS has the authority … Read more
Form 1099-S, Proceeds from Real Estate Transactions, is a crucial tax document used to report the sale or exchange of real estate. Understanding who is responsible for filing this form is essential for ensuring compliance with IRS regulations and avoiding potential penalties. This guide will provide a thorough analysis of the rules and exceptions surrounding … Read more
Receiving a letter from the IRS indicating a delay in your tax refund can be concerning. This guide explains the IRS’s 60-day review process, common reasons for delays, and steps you can take to expedite your refund. 60-Day Review Process When the IRS reviews your tax return, it may take up to 60 days to … Read more
Selling a rental property can be a lucrative way to generate profit, but it also comes with the potential for significant capital gains taxes. However, there are several strategies that investors can employ to minimize or even eliminate their tax liability when selling a rental property. This article will explore three effective methods for reducing … Read more
Understanding Tax Obligations for Students Being a full-time student does not automatically exempt you from federal income tax obligations. The factors that determine whether you need to file a tax return include: Income: The amount of earned and unearned income you receive Dependency status: Whether you can be claimed as a dependent on someone else’s … Read more
Property taxes are a significant expense for homeowners, and they can be especially burdensome for those on a fixed income or with limited financial resources. The good news is that there are a number of steps you can take to lower your property taxes, including: 1. Get a copy of your property tax card. Your … Read more
Navigating the complexities of tax filing can be daunting, especially when it comes to understanding your filing obligations. This comprehensive guide will delve into the intricacies of tax filing requirements, providing clarity on the threshold at which you are required to file a tax return. We will explore the various factors that influence filing requirements, … Read more
Navigating the complexities of filing a tax return for a deceased individual can be a daunting task. Understanding who is responsible for signing and filing the return is crucial to ensure compliance with tax regulations and avoid potential penalties. This guide will provide a comprehensive overview of the individuals authorized to sign a deceased tax … Read more