As tax season approaches, many taxpayers are wondering if the IRS will be auditing more returns this year. The answer is yes, but the increase in audits will be focused on high-income earners, partnerships, and corporations. The IRS is also planning to increase its scrutiny of tax preparers who help clients claim the Earned Income … Read more

TurboTax offers free tax filing services for Canadian residents with simple tax situations. This guide provides a comprehensive overview of TurboTax’s free offering, including eligibility criteria, features, and step-by-step instructions for filing your taxes online. Eligibility for TurboTax Free TurboTax Free is available to individuals with uncomplicated tax returns, typically including: Employment income Unemployment income … Read more

The Internal Revenue Service (IRS) has a vested interest in tracking the movement of money, especially when it comes to large sums. This includes gifts, which are subject to gift tax if they exceed a certain amount. The IRS has several methods at its disposal to discover unreported gifts, including: Form 709: This form is … Read more

Navigating the Complexities of Gift Taxes The concept of gifting substantial sums of money to loved ones, while well-intentioned, often raises concerns about potential tax implications. Understanding the intricacies of gift taxes is crucial to ensure compliance with tax regulations and avoid any unnecessary financial burdens. Understanding the Gift Tax Exemption In the United States, … Read more

Filing taxes can be a daunting task, and it’s easy to make mistakes. One common mistake is forgetting to report a W-2. If you make this mistake, you could face penalties from the Internal Revenue Service (IRS). Penalties for Not Reporting a W-2 The IRS imposes penalties on employers who fail to file W-2s for … Read more

When faced with unpaid tax liabilities, the Internal Revenue Service (IRS) possesses the legal authority to take various actions to collect the outstanding debt. One potential consequence is the seizure of assets, including vehicles such as cars. However, it’s crucial to note that the IRS typically resorts to this measure as a last resort after … Read more

12 Common IRS Audit Triggers Math Errors and Typos: The IRS uses automated programs to check for errors in math and calculations on tax returns. Any discrepancies can flag your return for further review. High Income: Individuals with higher incomes are more likely to be audited by the IRS. This is because the IRS believes … Read more

Self-employment offers individuals the freedom and flexibility to pursue their entrepreneurial aspirations. However, it also comes with unique tax considerations and an increased likelihood of being audited by the Internal Revenue Service (IRS). Understanding the reasons behind this heightened scrutiny can help self-employed individuals minimize their audit risk and ensure compliance with tax regulations. Reasons … Read more

Depreciation is a crucial tax concept that allows businesses to deduct the cost or other basis of certain property over its useful life. For 2021, the maximum depreciation deduction is subject to specific rules and limitations, which this comprehensive guide will explore. Depreciation Basics Depreciation is an accounting method that allocates the cost of a … Read more

An IRS audit is a review of an individual’s or organization’s tax return by the Internal Revenue Service (IRS) to ensure that the information reported on the return is accurate and complete. While an audit can be a stressful experience, it’s important to understand that it does not directly impact your credit score. The IRS … Read more