Can Your Tax Return Be Garnished? Understanding Tax Refund Garnishments Tax season is a time of year when many people look forward to receiving a refund from the government. However, for some, the possibility of having their tax refund garnished can be a source of concern. In this article, we will explore the circumstances under … Read more
When establishing a business, selecting the appropriate legal structure is crucial for determining tax liabilities and business operations. Sole proprietorship, a common choice for small businesses, raises questions about potential double taxation. This article delves into the concept of double taxation, explores the tax implications for sole proprietors, and provides insights into self-employment taxes and … Read more
Yes, you can change your direct deposit information with the IRS. Here’s how: How to Update Your Direct Deposit Information Every year when you file your tax return, you must provide your direct deposit information to receive your refund electronically. This includes your bank account and routing numbers. If you entered your information incorrectly, you … Read more
The issue of wealth inequality has been a topic of growing concern in recent years, with the gap between the rich and the poor widening at an alarming rate. This has led to calls for governments to take action to address this issue, including through the implementation of new or increased taxes on the wealthy. … Read more
Many parents consider adding their child’s name to their bank account as a way to save for their child’s future or to make it easier for their child to manage their finances. However, there are a number of potential consequences to consider before doing so. Potential Consequences of Adding a Child’s Name to Your Bank … Read more
The safe harbor rule is a provision in the tax code that allows taxpayers to avoid paying estimated tax penalties if they meet certain requirements. For 2021, the safe harbor rule states that taxpayers will not be penalized if they pay at least 90% of their current year’s tax liability or 100% of their prior … Read more
Can a person legally refuse to pay their federal income tax? No, a person cannot legally refuse to pay their federal income tax. The Internal Revenue Code (IRC) requires all U.S. citizens and resident aliens to file an income tax return and pay any taxes that are due. What are the consequences of refusing to … Read more
The Internal Revenue Service (IRS) has several ways to track gifts you make to your grandchildren or other family members: 1. Filing Form 709: The primary method the IRS uses to discover gifts is through Form 709. This form is required for gifts exceeding $15,000. 2. Audits: During an audit, the IRS may uncover gifts … Read more
Absolutely! The IRS Whistleblower Office rewards individuals who provide information leading to the collection of unpaid taxes, penalties, and interest. These awards can range from 15% to 30% of the collected proceeds, with a minimum threshold of $2 million in identified tax discrepancies. Who Qualifies as a Whistleblower? Any individual, except for certain government employees … Read more
The question of whether billionaires pay their fair share of taxes has been a topic of debate for decades. Some argue that the ultra-wealthy benefit from a rigged system that allows them to avoid paying their fair share, while others contend that they contribute significantly to the economy and deserve to keep more of their … Read more