Understanding the IRS Audit Process for Child-Related Tax Credits The Internal Revenue Service (IRS) conducts audits to ensure that taxpayers are accurately reporting their income and deductions. This includes verifying the eligibility of claimed dependents, such as children, for tax credits like the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). Reasons for … Read more
The Internal Revenue Service (IRS) has the authority to seize and sell assets to satisfy unpaid tax debts. This includes property held in a trust. However, the IRS’s ability to levy on trust assets is limited by certain legal protections, including spendthrift provisions and nominee liability. Spendthrift Provisions Spendthrift provisions are clauses in trust documents … Read more
The Internal Revenue Service (IRS) has been authorized to distribute stimulus checks to eligible individuals and families as part of the government’s response to the COVID-19 pandemic. These checks are intended to provide financial relief during this challenging time. However, some individuals may be concerned about whether the IRS will offset their stimulus checks against … Read more
Understanding the Protection of Retirement Accounts Generally, retirement accounts like 401(k) plans offer protection against creditors, including commercial entities like banks. This protection stems from the Employee Retirement Income Security Act of 1974 (ERISA), which designates that funds within a 401(k) legally belong to the plan administrator, not the account holder, until the point of … Read more
TransUnion, one of the three major credit bureaus in Canada, provides various services related to credit reporting and monitoring. While these services can be valuable, there may be instances when you encounter unexpected charges or errors that warrant a refund. This guide will provide a detailed explanation of the process involved in obtaining a refund … Read more
Retirement planning involves careful consideration of various factors, including the tax implications of pension income. In Canada, pensioners are subject to income tax on their pension payments, but the amount of tax owed depends on several factors. This guide will provide a comprehensive overview of how taxes are calculated on pension income in Canada, helping … Read more
Retirement planning is a crucial aspect of financial well-being. Employer-sponsored retirement plans, such as 401(k)s and 403(b)s, offer tax advantages and the potential for long-term savings growth. Roth 401(k)s and Roth 403(b)s are specialized types of these plans that provide unique tax benefits. This comprehensive guide will delve into the key differences between Roth 401(k)s … Read more
When applying for a mortgage, you will likely be asked to provide tax returns as part of the documentation process. This is a standard requirement for most lenders, as tax returns offer valuable insights into your financial situation and ability to repay a loan. In this article, we will delve into the reasons why banks … Read more
Home repairs and improvements are essential for maintaining and enhancing the value of your property. However, when it comes to taxes, the distinction between repairs and improvements is crucial, as only certain types of expenses qualify for deductions. In this article, we will explore the tax implications of home repairs, the criteria for claiming deductions, … Read more
Accepting an audit engagement is a significant responsibility for any accounting firm. Before agreeing to perform an audit, it is crucial to conduct thorough due diligence to assess potential risks and ensure that the firm is well-equipped to provide quality audit services. This article will provide a comprehensive overview of the key considerations that auditors … Read more