Navigating tax obligations can be a daunting task, especially when faced with financial constraints. The Internal Revenue Service (IRS) recognizes these challenges and offers various payment plan options to assist taxpayers in fulfilling their tax responsibilities. Among these options, the Long-Term Payment Plan, also known as an installment agreement, stands out as a viable solution … Read more
Understanding Estimated Tax Payments Self-employed individuals and freelancers are responsible for paying estimated taxes quarterly to the Internal Revenue Service (IRS). These payments cover income taxes and self-employment taxes, ensuring that taxes are paid throughout the year rather than in one lump sum at tax time. Consequences of Skipping Estimated Tax Payments Failure to make … Read more
The Internal Revenue Service (IRS) possesses the authority to freeze bank accounts as a means of collecting unpaid tax debts. This action can have severe repercussions, potentially leading to financial hardship and legal complications. Understanding the circumstances under which the IRS may resort to freezing bank accounts and the available options for resolving such situations … Read more
Navigating the complexities of tax responsibilities after the passing of a loved one can be daunting. This comprehensive guide will delve into the legal implications, identify who is accountable for unpaid taxes, and provide practical steps to manage the situation effectively. Legal Framework: Tax Obligations of the Deceased Upon death, the deceased’s unpaid taxes become … Read more
An IRS audit can be a daunting experience, especially if you’re missing receipts to support your tax deductions. However, it’s crucial to remember that an audit is not a trial, and honest mistakes won’t land you in jail. This guide will provide a comprehensive overview of what to expect during an audit without receipts, including … Read more
Receiving a notice from the IRS that your tax return is under review can be a daunting experience. Understanding the reasons behind an IRS review and the potential outcomes can help alleviate anxiety and guide you through the process effectively. This comprehensive guide will delve into the various factors that may trigger an IRS review, … 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. What is an IRS Audit? An IRS audit is a review of an individual’s or organization’s tax return and supporting documents to verify the … Read more
Sole proprietorships are a common business structure for individuals who want to start their own businesses. However, there may be times when a sole proprietorship does not generate any income. In these cases, it is important to understand whether or not the business owner is still required to file taxes. This article will explore the … Read more
Life insurance proceeds, typically paid directly to a beneficiary, are generally not subject to income tax as they’re seen as reimbursement for a loss. However, exceptions do exist. For instance, if the beneficiary owes back taxes, the IRS may place a lien on their assets, including the insurance proceeds. Understanding the Exceptions 1. Beneficiary’s Outstanding … Read more
Navigating the complexities of filing taxes for deceased or incapacitated loved ones can be daunting. This guide provides a comprehensive overview of the processes involved, empowering you to fulfill your responsibilities and ensure accurate tax reporting. Filing for a Deceased Loved One 1. Determine Filing Requirements: File a final income tax return (Form 1040 or … Read more