The Internal Revenue Service (IRS) is responsible for collecting taxes and enforcing tax laws in the United States. The IRS has a variety of methods to catch tax cheats and liars, but it does not check every tax return. In fact, the IRS only audits a small percentage of tax returns each year. How the … Read more
The Internal Revenue Service (IRS) is responsible for collecting taxes and enforcing tax laws in the United States. The IRS has a variety of methods to catch tax cheats, including: Computer data analysis Social media monitoring Whistleblowers Computer Data Analysis The IRS uses computer programs to match the information on your tax return to the … Read more
Section 80D of the Income Tax Act, 1961, offers tax deductions for individuals and Hindu Undivided Families (HUFs) who incur expenses on health insurance premiums and preventive health checkups. This deduction aims to encourage individuals to prioritize their health and well-being while reducing their tax liability. Eligibility Criteria To claim tax deductions under Section 80D, … Read more
Understanding the IRS Collection Statute of Limitations The Internal Revenue Service (IRS) has a limited time frame, known as the Collection Statute of Limitations (CSED), within which it can collect unpaid taxes, penalties, and interest from taxpayers. This time period generally spans 10 years from the date the tax was assessed. However, various circumstances and … Read more
Navigating the complexities of tax obligations can be overwhelming, especially when faced with a substantial tax debt. Understanding the consequences and available options for managing an IRS debt exceeding $50,000 is crucial for taxpayers seeking to resolve their tax liabilities effectively. This comprehensive guide will delve into the implications of owing more than $50,000 to … Read more
When it comes to filling out your W-4 form, the number of allowances you claim can significantly impact your paycheck and tax refund. Understanding the difference between claiming 1 or 0 allowances is crucial for optimizing your financial situation. What are Allowances? An allowance on your W-4 form represents a portion of your income that … Read more
Taxpayers eagerly anticipate the upcoming tax season, curious about the potential size of their tax refunds. This article delves into the latest information regarding 2024 tax refunds, analyzing factors that may influence their size and providing insights into what to expect. Inflation’s Impact on Tax Refunds Ironically, inflation could provide a financial boon for taxpayers … Read more
Navigating the Tax Implications of Funeral Costs When a loved one passes away, the emotional burden is often compounded by financial concerns. Funeral expenses can be a significant expense, and many people wonder if they can claim these costs on their tax returns. This article will delve into the tax implications of funeral expenses, exploring … Read more
The Internal Revenue Service (IRS) draws a clear distinction between hobbies and businesses for tax purposes. This distinction is crucial because it determines whether an individual’s activities are considered a profit-generating enterprise or a recreational pursuit. Understanding the IRS’s criteria for classifying an activity as a hobby or a business is essential for accurate tax … Read more
The mere mention of an IRS audit can send shivers down the spines of taxpayers. However, the reality is that the chances of facing an audit are surprisingly low for most individuals. This article delves into the statistics, misconceptions, and factors that determine the likelihood of an IRS audit, providing valuable insights for taxpayers seeking … Read more