Navigating the complexities of tax deductions can be a daunting task, especially when it comes to claiming expenses without receipts. However, understanding the rules and regulations can empower you to maximize your deductions and minimize your tax liability. This comprehensive guide will delve into the intricacies of claiming expenses without receipts, providing you with the … Read more
As the tax filing season approaches, it’s crucial to stay informed about any changes in tax laws that may affect your tax liability. This guide will provide a comprehensive overview of the tax changes implemented in 2022, helping you navigate the complexities of the tax code and plan your finances accordingly. Income Tax Rates and … Read more
When you file your taxes, you may end up paying more than you owe. This is known as an overpayment. The IRS will automatically refund the overpaid amount, but you can also choose to apply it to your next year’s taxes. What are the options for an overpayment? Taxpayers can choose to: Apply any portion … Read more
Yes, the IRS tracks bank wires. Under the Bank Secrecy Act (BSA) of 1970, financial institutions are required to report certain transactions to the IRS. This includes wire transfers over $10,000, which are subject to reporting under the Currency and Foreign Transactions Reporting Act (31 U.S.C. 5311 et seq.). What information is reported to the … Read more
Navigating Installment Agreements with the IRS The Internal Revenue Service (IRS) provides taxpayers with the option to establish installment agreements, allowing them to settle their tax liabilities over an extended period. However, taxpayers may encounter situations where they have multiple tax balances or owe taxes for multiple tax years. This raises the question of whether … Read more
Understanding Your Tax Obligations as a Former Green Card Holder As a green card holder, you are generally required to file a U.S. income tax return and report worldwide income, regardless of where you reside. However, if you surrender your green card or the U.S. Citizen & Immigration Service (USCIS) determines that you have abandoned … Read more
The Internal Revenue Service (IRS) possesses the authority to freeze not only bank accounts but also credit cards in certain circumstances. This action is typically taken as a last resort when an individual fails to fulfill their tax obligations despite repeated attempts by the IRS to collect the outstanding debt. Understanding the legal basis, consequences, … Read more
Understanding IRS Levies The Internal Revenue Service (IRS) possesses the authority to seize personal property in order to satisfy unpaid tax debts. This action, known as a levy, allows the IRS to legally take possession of various assets, including wages, bank accounts, vehicles, real estate, and other personal belongings. Reasons for IRS Levies The IRS … Read more
Understanding IRS Levies The Internal Revenue Service (IRS) possesses the authority to seize assets, including wages, bank accounts, vehicles, real estate, and other personal property, to satisfy unpaid tax debts. This action, known as a levy, allows the IRS to legally take possession of your assets to recover the owed taxes. IRS Levies vs. Credit … Read more
Individuals who receive income as independent contractors or self-employed professionals typically receive a Form 1099-NEC from the entities that paid them. This form reports the total amount of income earned during the tax year, and it serves as a crucial document for tax filing purposes. However, many individuals are unsure whether they can receive a … Read more