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

Individuals and businesses facing IRS tax debts exceeding $100,000 often experience immense financial strain and anxiety. Understanding the potential consequences and available resolution options is crucial for mitigating the impact of such substantial liabilities. This comprehensive guide analyzes relevant information from reputable sources to provide a roadmap for addressing IRS debt over $100,000. Consequences of … Read more

The Internal Revenue Service (IRS) imposes penalties and interest charges on taxpayers who fail to meet their tax obligations. These charges are designed to encourage timely filing and payment of taxes, ensuring the smooth functioning of the tax system. This guide provides a detailed overview of IRS penalties, including the types of penalties, interest charges, … Read more

Self-employment tax is a crucial aspect of financial planning for individuals who work for themselves. Understanding the self-employment tax rate and its implications is essential for accurate tax filing and financial management. This article delves into the intricacies of the self-employment tax rate, providing a comprehensive overview for self-employed individuals. What is Self-Employment Tax? Self-employment … Read more