An Offer in Compromise (OIC) is a settlement agreement between a taxpayer and the Internal Revenue Service (IRS) that allows the taxpayer to pay less than the full amount of taxes owed. The IRS may consider an OIC if the taxpayer can prove that they are unable to pay the full amount of their tax … Read more
Understanding the Canadian tax system is crucial for individuals and businesses alike. Taxes play a significant role in funding essential public services and infrastructure. This guide provides a comprehensive overview of Canada’s tax brackets and rates, empowering you with the knowledge to navigate the tax landscape effectively. Federal Income Tax Brackets The federal government of … Read more
The Internal Revenue Service (IRS) is responsible for enforcing the tax laws of the United States. This includes conducting audits to ensure that taxpayers are complying with their tax obligations. While the IRS primarily focuses on auditing US residents, non-residents can also be subject to audits. Reasons for Auditing Non-Residents There are several reasons why … Read more
The standard deduction is a specific dollar amount that reduces the amount of income on which you are taxed. Most taxpayers are eligible to claim the standard deduction, but there are some exceptions. This article will discuss who is not eligible for the standard deduction. Taxpayers Who Are Not Eligible for the Standard Deduction The … Read more
The Internal Revenue Service (IRS) may notify you of a mistake on your tax return through an audit or an examination. An audit is a review of your tax return to ensure that the information you provided is accurate and that you have paid the correct amount of taxes. An examination is a more in-depth … Read more
If you’re encountering incorrect information when using the IRS’s “Where’s My Refund” tool for the 2020 tax year, there are several potential reasons and solutions to consider: Incorrect Input: Double-check your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN): Ensure that you have entered your SSN or ITIN accurately, without any errors or … Read more
Understanding the IRS Backlog The Internal Revenue Service (IRS) is responsible for processing tax returns and issuing refunds to eligible taxpayers. However, due to various factors, including the COVID-19 pandemic and staffing shortages, the IRS has been experiencing significant delays in processing tax returns. As a result, many taxpayers have not yet received their refunds … Read more
Self-employment tax is a combination of Social Security and Medicare taxes that self-employed individuals are responsible for paying. It is similar to the FICA taxes that employers withhold from employees’ paychecks, but self-employed individuals are responsible for paying both the employee and employer portions. Who is Self-Employed? The IRS considers you self-employed if you meet … Read more
When dealing with financial matters, understanding the time it takes for checks to clear the bank is crucial. This is especially important for checks issued by the Internal Revenue Service (IRS), as delays in clearing can impact your financial planning and tax obligations. This article delves into the intricacies of IRS check processing, providing a … Read more
Overpaying taxes is a common occurrence, with many individuals receiving substantial tax refunds each year. While getting a refund may seem like a positive outcome, it actually indicates that you have been providing the government with an interest-free loan throughout the year. This article delves into the reasons why most people overpay their taxes and … Read more