An IRS audit can be a daunting experience, but it doesn’t have to be. By understanding the common triggers for audits and taking steps to minimize your risk, you can significantly reduce your chances of being selected for an audit. This comprehensive guide will provide you with proven strategies and best practices to help you … Read more
The Internal Revenue Service (IRS) pays interest on overpayments, including late refunds, at a rate that varies quarterly. The current interest rate for overpayments made after March 31, 2023, is 8%. This rate applies to both individuals and corporations. The IRS begins accruing interest on overpayments 45 days after the later of the following dates: … Read more
Capital gains are profits from the sale of assets like stocks, bonds, and real estate. The IRS tracks capital gains to ensure accurate tax reporting and collection. This article explains how the IRS detects capital gains and the consequences of underreporting. Reporting Capital Gains Individuals are responsible for reporting capital gains on their tax returns … Read more
Navigating the complexities of tax payments and refunds can be a daunting task, especially when it comes to understanding interest rates. The Internal Revenue Service (IRS) sets interest rates quarterly, and these rates play a crucial role in determining the amount of interest you may owe on unpaid taxes or the amount of interest you … Read more
Navigating tax complexities can be daunting, and unintentional errors or omissions can lead to penalties and legal consequences. However, the Internal Revenue Service (IRS) recognizes the challenges taxpayers may face and offers amnesty programs to provide a path to compliance for those who have failed to pay taxes in the past. These programs aim to … Read more
Navigating tax complexities can be daunting, and understanding your responsibilities for reporting cash income is crucial. Failing to report all sources of income, including cash transactions, can lead to legal consequences and financial penalties. This comprehensive guide will delve into the obligation to report cash income, the potential risks of underreporting, and the proper methods … Read more
The Internal Revenue Service (IRS) is actively reaching out to millions of individuals and families who may be eligible for valuable tax benefits but have yet to file a 2021 federal income tax return. This outreach effort is intended to ensure that eligible individuals receive the financial assistance they are entitled to. Unclaimed Benefits The … Read more
The IRS Fresh Start Program is a set of initiatives designed to assist taxpayers who are struggling to meet their tax obligations. The program offers various relief options, including installment agreements, offers in compromise, and penalty relief. While participation in the Fresh Start Program can provide significant financial relief, it’s important to consider its potential … Read more
Yes, the IRS is notified when you buy a house. Mortgage companies are required by law to report large transactions to the IRS. This includes any cash purchase over $10,000. The IRS uses this information to track potential money laundering and other financial crimes. How the IRS Finds Out About Your Home Purchase The IRS … Read more
Audits play a crucial role in ensuring the accuracy and reliability of financial information, safeguarding businesses and individuals from potential risks. There are three primary types of audits: external audits, internal audits, and Internal Revenue Service (IRS) audits. Each type serves a distinct purpose and follows specific procedures. This comprehensive guide will delve into the … Read more