Understanding the IRS Return Status “Accepted But Not Approved” When you file your tax return, the IRS acknowledges its receipt with the status “Accepted.” However, this doesn’t mean your return has been approved or processed. The “Accepted But Not Approved” status indicates that the IRS has received your return but has not yet reviewed it. … Read more
Inheritance tax, a levy imposed on beneficiaries who inherit assets from a deceased individual, is a crucial consideration in estate planning. While there is no federal inheritance tax in the United States, six states – Iowa, Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania – impose this tax. Understanding the intricacies of inheritance tax laws in … Read more
Consequences and Options for Unfiled Tax Returns Failing to file your taxes for three years can lead to serious consequences, including: Loss of Tax Refund: If you’re due a tax refund, you have three years from the original filing deadline to claim it. After that, you forfeit the refund. Failure-to-File and Failure-to-Pay Penalties: The IRS … Read more
Understanding Notice 1444 Notice 1444, titled “Your Economic Impact Payment,” is a crucial document issued by the Internal Revenue Service (IRS) to inform recipients about their Economic Impact Payment (EIP). This payment, commonly known as a stimulus check, is a direct cash payment made by the government to eligible individuals and families to provide financial … Read more
Prepaid taxes are a common accounting concept that businesses encounter when managing their financial obligations. Understanding how to account for prepaid taxes is crucial for accurate financial reporting and compliance with tax regulations. This article provides a comprehensive guide to prepaid taxes, explaining their nature, accounting treatment, and implications for businesses. What are Prepaid Taxes? … Read more
The Internal Revenue Service (IRS) is responsible for enforcing the nation’s tax laws. As part of this responsibility, the IRS conducts audits to ensure that taxpayers are complying with these laws. While most people associate audits with negative consequences, they can also be an opportunity for taxpayers to correct any errors on their tax returns … Read more
Limited Liability Companies (LLCs) have become increasingly popular among business owners due to their flexibility, liability protection, and tax advantages. Understanding how LLCs are taxed is crucial for business owners to optimize their tax strategies and minimize their tax burden. This comprehensive guide will delve into the intricacies of LLC taxation, providing a clear understanding … Read more
Trusts have become increasingly popular estate planning tools, offering numerous benefits such as asset protection, probate avoidance, and tax savings. However, understanding the tax implications of trusts is crucial to ensure proper compliance and avoid potential liabilities. This article delves into the complexities of trust taxation, specifically addressing whether beneficiaries are responsible for paying taxes … Read more
Navigating the complexities of the tax system can be daunting, especially when it comes to understanding tax withholding. As an employee, it’s crucial to grasp how withholding works to ensure accurate tax payments and avoid surprises at tax time. This comprehensive guide will delve into the intricacies of tax withholding, providing clear explanations, practical tips, … Read more
Yes, Canadian banks share information with the Canada Revenue Agency (CRA). As part of the Enhanced Financial Account Information Reporting regime, Canadian financial institutions, including banks, are required to collect and report specific information about their clients’ accounts to the CRA. This information includes: Account holder’s name, address, and date of birth Account number and … Read more