Exchanging gifts is a common practice that often conveys sentiments of love, appreciation, or support. However, when it comes to monetary gifts, understanding the tax implications is crucial to avoid any surprises or legal complications. This article delves into the intricacies of gift taxation, exploring who is responsible for paying taxes on gifts, when gift … Read more
Navigating the complexities of tax debt can be daunting, especially when it comes to its potential impact on your credit score. Understanding the relationship between IRS collections and credit reporting is crucial for managing your finances effectively. IRS and Credit Bureaus: A Tale of Limited Interaction Contrary to common misconceptions, the IRS does not directly … Read more
The Internal Revenue Service (IRS) has established a specific time frame within which taxpayers can claim a credit or refund for federal income taxes. This time frame is known as the Refund Statute Expiration Date (RSED). Understanding the IRS 3-year rule is crucial to ensure that you don’t miss out on any eligible tax refunds … Read more
Inheriting a property can be a significant financial event, but it also raises questions about potential tax liabilities. One of the key considerations is capital gains tax, which may be imposed when you sell the inherited property. This guide will delve into the intricacies of capital gains tax on inherited property, exploring the various factors … Read more
Capital gains, profits derived from the sale of assets, are subject to taxation in most jurisdictions. However, the concept of double taxation arises when these gains are taxed multiple times, potentially leading to an inflated tax burden. This article delves into the complexities of capital gains taxation, examining whether and how they are taxed twice, … Read more
Depositing large checks, particularly those exceeding $10,000, can raise concerns about potential fraud or money laundering. Banks have implemented various policies and procedures to mitigate these risks, including flagging large check deposits for review. This article examines the reasons why banks flag large check deposits, the potential consequences, and steps individuals can take to avoid … Read more
Understanding IRS Notices and Letters When you receive a notice or letter from the IRS, it’s important to understand why you’re being contacted. The IRS sends correspondence for various reasons, including: You have an outstanding balance due. You’re due a larger or smaller refund. The IRS has questions about your tax return. The IRS needs … Read more
Understanding Chapter 13 Bankruptcy and Tax Refunds When filing for Chapter 13 bankruptcy, it’s important to understand how your tax refunds will be treated. In general, you will be required to turn over your tax refund to the Chapter 13 trustee, who will distribute it to your creditors. However, there are some exceptions to this … Read more
Understanding Tax Evasion and Whistleblower Reporting Tax evasion, the deliberate underpayment or nonpayment of taxes, is a serious offense that can trigger IRS investigations and penalties. If you suspect someone is evading taxes, you can report them to the IRS through their whistleblower program. IRS Whistleblower Program The IRS Whistleblower Office encourages individuals to report … Read more
Understanding IRS Offsets The Internal Revenue Service (IRS) has the authority to offset tax refunds to settle outstanding debts, including federal taxes, child support, federal agency nontax debts, state income tax obligations, and unemployment compensation debts. This process, known as a refund offset, involves applying an overpayment in taxes towards these debts. Reversal of IRS … Read more