Filing taxes can be a daunting task, and it’s easy to make mistakes. One common mistake is forgetting to claim a 1099 form on your tax return. 1099 forms are used to report income from sources other than your employer, such as self-employment income, dividends, and interest. If you fail to report all of your … Read more

Tax evasion, the deliberate non-payment or underpayment of taxes, is a serious offense that undermines the integrity of the tax system and deprives governments of essential revenue. This comprehensive guide will delve into the intricacies of tax evasion, exploring its definition, consequences, and the strategies employed by individuals and entities to avoid detection. By understanding … Read more

Purchasing a home is a significant financial decision that can have a substantial impact on an individual’s tax situation. The U.S. tax code offers a range of tax benefits and deductions to homeowners, making it crucial to understand how these incentives can affect your overall tax liability. This comprehensive guide will delve into the tax … Read more

IRS Progress on Tax Return Processing: Catching Up and Exceeding Expectations The Internal Revenue Service (IRS) is making significant strides in processing tax returns for the 2024 tax season, despite a slightly delayed start compared to 2023. As of March 29, the IRS had processed over 88.8 million federal income tax returns, representing a 1% … Read more

Investing in stocks can be a lucrative way to grow your wealth, but it’s essential to understand the tax implications before you dive in. This comprehensive guide will delve into the complexities of stock taxation, providing you with a clear understanding of when and how you’ll need to pay taxes on your stock investments. Capital … Read more

Understanding why you owe taxes this year when you typically receive a refund can be frustrating. Several factors can contribute to this unexpected outcome, including changes in your personal or financial circumstances. Let’s delve into some common reasons why you may find yourself owing taxes to the IRS: 1. Underpayment of Quarterly Taxes for Self-Employed … Read more

The Fresh Start program is a government initiative that helps federal student loan borrowers who have defaulted on their loans. The program offers a number of benefits, including: Removal of default status: The Fresh Start program will remove the default status from your credit report. This will make it easier for you to qualify for … Read more

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