Understanding IRS Wage Garnishment The Internal Revenue Service (IRS) possesses the authority to garnish wages to collect unpaid tax debts. Unlike most creditors, the IRS can initiate wage garnishment without obtaining a court judgment. Additionally, the amount the IRS can seize typically exceeds that of regular creditors. IRS Notification and Wage Garnishment Process Before initiating … Read more

Understanding Roth IRA Eligibility Roth IRAs, named after former Senator William Roth, are tax-advantaged retirement accounts that offer potential tax savings. Unlike traditional IRAs, contributions to Roth IRAs are made on an after-tax basis, meaning they are not tax-deductible. However, qualified withdrawals from Roth IRAs are tax-free, providing significant benefits in the long run. Income … Read more

Tax refunds are a common occurrence for individual taxpayers, but what about businesses? Can small businesses, particularly sole proprietorships, receive tax refunds? The answer is yes, but there are specific criteria that must be met. This guide will delve into the intricacies of tax refunds for sole proprietors, exploring eligibility requirements, common deductions, and strategies … Read more

The Internal Revenue Service (IRS) is responsible for collecting taxes and enforcing tax laws in the United States. As part of their duties, IRS agents may investigate taxpayers’ financial activities, including their online activity. This has led to concerns about whether the IRS can see your internet history. Can the IRS See Your Internet History? … Read more

Investing in the stock market can be a great way to grow your wealth over time. However, it’s important to be aware of the tax implications of your investment decisions. One question that many investors have is whether they have to pay taxes on reinvested capital gains. The answer to this question is yes, in … Read more

In the United States, the government requires businesses and individuals to report cash transactions that exceed $10,000. This reporting requirement is intended to combat money laundering and other financial crimes. The penalties for failing to report large cash transactions can be significant, so it is important to be aware of the rules and regulations surrounding … Read more

When filing taxes, individuals have the option to itemize deductions or claim the standard deduction. Itemizing deductions involves listing specific expenses that can be subtracted from taxable income, while the standard deduction is a fixed amount that varies based on filing status. A common concern among taxpayers is whether itemizing deductions increases the likelihood of … Read more

Navigating tax debt can be a daunting task, especially when the burden of your financial obligations seems insurmountable. The Internal Revenue Service (IRS) recognizes the challenges taxpayers may face and offers a potential solution through its Offer in Compromise (OIC) program. This program allows eligible individuals and businesses to settle their tax debts for less … Read more

Roth 401(k) plans offer unique tax advantages, but eligibility is subject to certain income limits. This guide explores the income thresholds that determine whether a Roth 401(k) is a suitable retirement savings option. Roth 401(k) Income Limits for 2023 Contribution Limit: $22,500 ($30,000 for individuals age 50 and older) Phase-Out Range: Single filers: $138,000 – … Read more

The Internal Revenue Service (IRS) conducts audits to ensure that taxpayers are complying with tax laws and reporting their income and expenses accurately. While some audits may appear random, the IRS actually uses specific criteria to select tax returns for review. This article will explore the factors that the IRS considers when selecting returns for … Read more