The Cohan rule is a legal doctrine that allows taxpayers to estimate certain tax deductions when they lack precise records of actual expenses. Named after the taxpayer in the landmark case Cohan v. Commissioner, this rule provides taxpayers with a degree of flexibility in substantiating their deductions, particularly when faced with incomplete or missing documentation. … Read more
The Internal Revenue Service (IRS) is tasked with the critical responsibility of enforcing the nation’s tax laws. To effectively carry out this mission, the IRS employs a specialized force of law enforcement officers known as Special Agents. These agents possess the authority to investigate financial crimes, execute search warrants, and make arrests, all while carrying … Read more
The Internal Revenue Service (IRS) conducts annual maintenance on its e-filing system, resulting in a temporary shutdown period during which taxpayers cannot electronically file their tax returns. This shutdown typically occurs in late fall or early winter for individual returns and late December or early January for business returns. Individual Return Shutdown For the 2023 … Read more
Navigating the complexities of the Internal Revenue Service (IRS) can be daunting, especially when faced with financial hardship. The IRS recognizes the challenges individuals may encounter and offers hardship provisions to alleviate the burden of tax obligations. This guide delves into the qualifications, procedures, and implications of IRS hardship withdrawals, early withdrawals, and loans, empowering … Read more
Tax season is upon us, and that means it’s time to start thinking about how you’re going to file your taxes. If you’re like most people, you’ll probably use tax software to help you get the job done. But with so many different options out there, it can be tough to know which one is … Read more
The Internal Revenue Service (IRS) is responsible for collecting taxes and enforcing tax laws in the United States. The IRS has a variety of methods to catch tax cheats and liars, but it does not check every tax return. In fact, the IRS only audits a small percentage of tax returns each year. How the … Read more
The Internal Revenue Service (IRS) is responsible for collecting taxes and enforcing tax laws in the United States. The IRS has a variety of methods to catch tax cheats, including: Computer data analysis Social media monitoring Whistleblowers Computer Data Analysis The IRS uses computer programs to match the information on your tax return to the … Read more
Section 80D of the Income Tax Act, 1961, offers tax deductions for individuals and Hindu Undivided Families (HUFs) who incur expenses on health insurance premiums and preventive health checkups. This deduction aims to encourage individuals to prioritize their health and well-being while reducing their tax liability. Eligibility Criteria To claim tax deductions under Section 80D, … Read more
Understanding the IRS Collection Statute of Limitations The Internal Revenue Service (IRS) has a limited time frame, known as the Collection Statute of Limitations (CSED), within which it can collect unpaid taxes, penalties, and interest from taxpayers. This time period generally spans 10 years from the date the tax was assessed. However, various circumstances and … Read more
Navigating the complexities of tax obligations can be overwhelming, especially when faced with a substantial tax debt. Understanding the consequences and available options for managing an IRS debt exceeding $50,000 is crucial for taxpayers seeking to resolve their tax liabilities effectively. This comprehensive guide will delve into the implications of owing more than $50,000 to … Read more