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
TurboTax has long been the dominant player in the tax software market, but there are a number of other options available that may be a better fit for your needs. In this article, we’ll compare TurboTax to some of its top competitors and help you decide which software is right for you. TurboTax TurboTax is … Read more
Yes, you can still file your 2021 taxes electronically in 2023. The IRS accepts electronically filed tax returns until November of each year. This means that you have until November 2023 to file your 2021 taxes electronically. Benefits of Filing Electronically There are many benefits to filing your taxes electronically, including: Faster processing: Electronically filed … 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
Individuals and businesses facing IRS tax debts exceeding $100,000 often experience immense financial strain and anxiety. Understanding the potential consequences and available resolution options is crucial for mitigating the impact of such substantial liabilities. This comprehensive guide analyzes relevant information from reputable sources to provide a roadmap for addressing IRS debt over $100,000. Consequences of … Read more
The financial burden associated with funeral expenses can be substantial, and understanding the tax implications of these costs is crucial for effective estate planning. This comprehensive guide analyzes relevant information from reputable sources to provide a roadmap for addressing tax deductions related to funeral expenses. Tax Deductibility of Funeral Expenses Individuals Individuals cannot claim funeral … Read more
Understanding IRS Investigations The Internal Revenue Service (IRS) possesses the authority to investigate suspected tax fraud or non-compliance. Unlike audits, which focus on verifying the accuracy of tax returns, investigations aim to uncover intentional attempts to evade or misrepresent tax liabilities. Distinction Between Audits and Investigations While both audits and investigations involve IRS scrutiny of … Read more
Navigating the intricacies of tax payments can be daunting, especially when faced with the burden of outstanding tax liabilities. Understanding your options for repaying back taxes is crucial to avoid further penalties and interest charges. This comprehensive guide will delve into the various payment methods and plans offered by the Internal Revenue Service (IRS) to … 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