The American Rescue Plan Act of 2021 authorized the third round of Economic Impact Payments (EIP3) as a form of financial relief to eligible individuals and families amidst the ongoing COVID-19 pandemic. This payment, also known as the third stimulus check, differs from the previous two rounds in several key aspects, including eligibility criteria, payment … Read more
When applying for a mortgage, you’ll likely be asked to provide tax returns as part of the documentation process. This is because mortgage lenders want to assess your financial situation and determine your ability to repay the loan. But how far back do underwriters typically look at tax returns? Most lenders will request one to … Read more
If you’re wondering why your federal withholding is so low, you’re not alone. Many taxpayers find themselves in this situation, and there are a few common reasons why it might happen. 1. You recently had a major life event. If you recently got married, had a child, or bought a house, your withholding may have … Read more
Internal Revenue Service (IRS) audits can be a daunting prospect for businesses, potentially leading to financial penalties and reputational damage. To minimize the risk of an audit, it is crucial for businesses to be aware of the common triggers that can attract the IRS’s attention. This article provides a comprehensive overview of IRS audit triggers, … Read more
The Internal Revenue Service (IRS) is responsible for enforcing the nation’s tax laws. As part of their duties, IRS officers may need to contact taxpayers for various reasons. However, it’s crucial to be aware of the proper procedures the IRS follows to avoid falling prey to scams and fraudulent activities. IRS Contact Methods The IRS … Read more
Navigating the Complexities of Tax Filing The tax filing process can be a daunting task, especially if you have missed filing in previous years. Understanding the rules and regulations surrounding multiple tax returns in a single year is crucial to avoid potential complications. This comprehensive guide will delve into the intricacies of filing multiple tax … Read more
Auditors play a critical role in the financial ecosystem, serving as independent gatekeepers who provide assurance on the accuracy and fairness of financial statements. Their independence is paramount to maintaining public trust in the integrity of financial reporting. This article explores the safeguards and incentives that ensure auditor independence, empowering them to deliver high-quality audits … Read more
Disputing a tax penalty imposed by the Internal Revenue Service (IRS) can be a daunting task. However, taxpayers have the right to appeal these penalties and seek a fair resolution. This guide provides a comprehensive overview of the appeals process, empowering taxpayers with the knowledge and strategies to effectively challenge IRS penalties. Step 1: Request … Read more
Roth IRAs offer numerous tax benefits, including tax-free investment growth and withdrawals. However, understanding the reporting requirements for Roth IRAs is crucial to avoid potential tax liabilities. This guide provides a comprehensive overview of when and how Roth IRA gains should be reported on taxes. When to Report Roth IRA Gains In most cases, Roth … Read more
TurboTax offers free tax filing services for Canadian residents with simple tax situations. This guide provides a comprehensive overview of TurboTax’s free offering, including eligibility criteria, features, and step-by-step instructions for filing your taxes online. Eligibility for TurboTax Free TurboTax Free is available to individuals with uncomplicated tax returns, typically including: Employment income Unemployment income … Read more