Understanding Property Tax Liens and Tax Sales Property taxes are an essential source of revenue for local governments, funding crucial services like schools, roads, and parks. When property owners fail to pay their taxes, the government has the authority to impose a lien on the property, giving it a legal claim to the property until … Read more
Understanding Box 2 of Form W-2 Form W-2, Wage and Tax Statement, is issued by employers to employees at the end of each year, summarizing their earnings and taxes withheld during the year. Box 2 of Form W-2 shows the total federal income tax withheld from the employee’s paycheck. Reasons for a Blank Box 2 … Read more
Filing taxes is an essential obligation for individuals and businesses alike. While the process can be daunting, it’s crucial to approach it with accuracy and attention to detail to minimize the chances of an audit. One factor that can influence the likelihood of an audit is the method of filing: paper returns versus electronic returns. … Read more
401(k) plans are a popular retirement savings vehicle that offer tax benefits. Contributions are made on a pre-tax basis, reducing your current taxable income. However, when you withdraw funds from your 401(k), they are typically taxed as ordinary income. Understanding the tax implications of 401(k) distributions is crucial to avoid unexpected tax liabilities. When to … Read more
When it comes to managing your finances, keeping track of your checks is essential. But what about voided checks? Are they worth keeping, or should you shred them? What is a voided check? A voided check is a check that has been canceled before it was cashed. This can happen for a variety of reasons, … Read more
The Internal Revenue Service (IRS) has specific guidelines for determining who is required to file a tax return, regardless of whether they owe taxes or not. Understanding these requirements is crucial to avoid penalties and ensure compliance with tax laws. General Filing Requirements In general, individuals are required to file a tax return if their … Read more
Audits play a crucial role in ensuring the accuracy and transparency of financial reporting. They provide independent assessments of an organization’s financial statements, internal controls, and compliance with regulations. Different types of audits serve distinct purposes and are conducted by different entities. This article delves into the three main types of audits: external audits, internal … Read more
Filing taxes can be a daunting task, and many individuals wonder if they are required to file a tax return. The Internal Revenue Service (IRS) has established specific criteria to determine who must file a tax return. This article explores the factors that affect the filing requirement, including gross income, filing status, self-employment status, and … Read more
The federal government has the authority to seize funds from your savings account to satisfy unpaid tax obligations. This action is known as a bank levy. The Internal Revenue Service (IRS) can issue a levy without obtaining a court order if you have not paid your taxes after receiving a notice and demand for payment. … Read more
Understanding IRS Audits An IRS audit involves a review of your tax return by the Internal Revenue Service (IRS) to verify its accuracy and compliance with tax laws. If the IRS identifies any discrepancies or errors, it may propose adjustments to your tax liability. Consequences of Failing an Audit If you fail an audit, it … Read more