Purchasing a property is a significant financial undertaking, and many first-time buyers rely on financial assistance from family or friends to secure a mortgage. One common form of assistance is a gifted deposit, where a relative or friend provides a sum of money to contribute towards the purchase price. However, it is important to understand … Read more
Irrevocable trusts are legal arrangements that provide asset protection and estate planning benefits. However, concerns may arise regarding the potential for the Internal Revenue Service (IRS) to seize assets held within an irrevocable trust. This article analyzes the interplay between irrevocable trusts and the IRS’s authority to levy assets, providing insights into the circumstances under … Read more
The year 2021 brought about a wave of significant changes to the tax landscape, impacting individuals and businesses alike. Understanding these new tax laws is crucial to ensure accurate tax filing and avoid potential penalties. This comprehensive guide will delve into the key changes introduced for the 2021 tax year, providing a clear and concise … Read more
A Comprehensive Guide to States Without Inheritance Tax: Plan Strategically for Estate Distribution Estate planning is a crucial aspect of financial management, ensuring the smooth distribution of assets after an individual’s passing. One key consideration in estate planning is the potential impact of inheritance tax, which can significantly reduce the value of an estate. In … Read more
Uncovering the Notorious Debtors: A Comprehensive Guide to the Biggest IRS Audits Navigating the complexities of tax obligations can be a daunting task, and failing to comply can lead to severe consequences. The Internal Revenue Service (IRS) is responsible for enforcing tax laws and collecting taxes, and its audits can be a formidable force for … Read more
The standard deduction is a specific amount that you can deduct from your taxable income before you calculate your taxes. It reduces your taxable income, potentially lowering your tax liability. Standard Deduction for Senior Citizens in 2021 Single: $13,850 Married filing jointly: $27,700 Married filing separately: $13,850 Head of household: $20,800 Additional Standard Deduction for … Read more
A write-off is an accounting action that reduces the value of an asset while simultaneously debiting an expense account. It is primarily used in its most literal sense by businesses seeking to account for unpaid loan obligations, unpaid receivables, or losses on stored inventory. Generally, it can also be referred to broadly as something that … Read more
Yes, the IRS can pursue a deceased person’s estate for unpaid taxes. When an individual passes away with outstanding tax obligations, the responsibility to settle those debts falls upon their estate. The estate is the sum of all the deceased person’s assets and liabilities, and it is typically administered by an executor or personal representative. … Read more
Yes, non-filers can get the Child Tax Credit (CTC) through the IRS Non-filer tool. Eligibility for Non-Filers To be eligible for the CTC as a non-filer, you must meet the following criteria: You have a qualifying child who is under 18 years old and has a Social Security number. You are not required to file … Read more
Understanding IRS Information Requests During an audit, the Internal Revenue Service (IRS) may request various types of information from taxpayers, including credit card statements. These requests aim to verify the accuracy of reported income and expenses on tax returns. Reasons for IRS Credit Card Statement Requests The IRS may request credit card statements for several … Read more