The Earned Income Credit (EIC) is a significant tax credit designed to supplement the earnings of low-to-moderate income working individuals and families. This credit can substantially reduce your tax liability or even result in a tax refund. Understanding the eligibility criteria and income limits for the EIC is crucial to determine if you qualify for … Read more
Navigating the complexities of the tax system can be daunting, and sometimes you may need to speak with an IRS agent to clarify issues or resolve specific tax-related concerns. This guide provides detailed instructions on how to contact an IRS agent in 2023, ensuring a smooth and efficient interaction. Contacting the IRS via Phone 1. … Read more
Filing taxes can be a daunting task, and the temptation to cut corners or even lie on your return may cross your mind. However, it’s crucial to understand the severe consequences that can arise from tax fraud. What Constitutes Tax Fraud? Tax fraud encompasses any intentional misrepresentation or omission of information on your tax return … Read more
Form 16 is a crucial document for salaried individuals in India, as it serves as a TDS (Tax Deducted at Source) certificate issued by employers to employees. This certificate provides details of an employee’s salary, allowances, deductions, and tax deducted during a financial year. While Form 16 plays a vital role in income tax filing, … Read more
Understanding Bank Levies The Internal Revenue Service (IRS) possesses the authority to impose a bank levy, a legal tool employed to seize funds from a taxpayer’s bank account in order to settle outstanding tax obligations. This action is typically taken when a taxpayer fails to remit payment after receiving multiple notifications and inquiries from the … Read more
Understanding an Offer in Compromise An Offer in Compromise (OIC) is a formal agreement between a taxpayer and the Internal Revenue Service (IRS) that settles the taxpayer’s tax debt for less than the full amount owed. The IRS may consider an OIC if the taxpayer can demonstrate that they are unable to pay the full … Read more
The Internal Revenue Service (IRS) may impose interest charges on unpaid taxes resulting from an audit. The interest rate is determined by the federal short-term rate plus 3 percentage points, compounded daily. The current interest rate is 6%. Additional Penalties for Late Payment or Underpayment In addition to interest charges, the IRS may also impose … Read more
Failing to pay your taxes on time or in full can result in significant financial consequences, including penalties and interest charges. Understanding the implications of non-payment is crucial for responsible tax management. Penalties for Late or Non-Payment The Internal Revenue Service (IRS) imposes penalties on taxpayers who fail to meet their tax obligations. These penalties … Read more
Failing to report income on your taxes can lead to penalties and interest charges from the IRS. It’s crucial to accurately report all sources of income to avoid potential legal and financial consequences. Consequences of Unreported Income IRS Recalculation: The IRS may recalculate your tax return, including the unreported income, resulting in additional taxes, penalties, … Read more
A final audit, also known as a periodic audit, is an examination of an organization’s financial statements and records performed after the end of an accounting period, typically at the end of a fiscal year. The primary objective of a final audit is to provide assurance that the financial statements are accurate, complete, and presented … Read more