An IRS audit can be a daunting experience, but it doesn’t have to be. By understanding the common triggers for audits and taking steps to minimize your risk, you can significantly reduce your chances of being selected for an audit. This comprehensive guide will provide you with proven strategies and best practices to help you … Read more
Business meals and entertainment expenses are common occurrences for many businesses. Understanding the nuances of their tax deductibility can significantly impact your tax liability. This guide will delve into the intricacies of these expenses, providing clarity on what is and is not deductible under the current tax laws. Business Meals Deductible Business Meals Meals provided … Read more
Wage garnishment, a severe consequence of unpaid taxes, occurs when the Internal Revenue Service (IRS) seizes a portion of an individual’s wages to settle outstanding tax debts. This measure is employed when taxpayers fail to fulfill their tax obligations despite receiving multiple notices and demands for payment. Understanding the intricacies of IRS wage garnishment is … Read more
The Internal Revenue Service (IRS) pays interest on overpayments, including late refunds, at a rate that varies quarterly. The current interest rate for overpayments made after March 31, 2023, is 8%. This rate applies to both individuals and corporations. The IRS begins accruing interest on overpayments 45 days after the later of the following dates: … Read more
Capital gains are profits from the sale of assets like stocks, bonds, and real estate. The IRS tracks capital gains to ensure accurate tax reporting and collection. This article explains how the IRS detects capital gains and the consequences of underreporting. Reporting Capital Gains Individuals are responsible for reporting capital gains on their tax returns … Read more
Navigating the complexities of tax payments and refunds can be a daunting task, especially when it comes to understanding interest rates. The Internal Revenue Service (IRS) sets interest rates quarterly, and these rates play a crucial role in determining the amount of interest you may owe on unpaid taxes or the amount of interest you … Read more
Navigating tax complexities can be daunting, and unintentional errors or omissions can lead to penalties and legal consequences. However, the Internal Revenue Service (IRS) recognizes the challenges taxpayers may face and offers amnesty programs to provide a path to compliance for those who have failed to pay taxes in the past. These programs aim to … Read more
Navigating tax complexities can be daunting, and understanding your responsibilities for reporting cash income is crucial. Failing to report all sources of income, including cash transactions, can lead to legal consequences and financial penalties. This comprehensive guide will delve into the obligation to report cash income, the potential risks of underreporting, and the proper methods … Read more
The Internal Revenue Service (IRS) is actively reaching out to millions of individuals and families who may be eligible for valuable tax benefits but have yet to file a 2021 federal income tax return. This outreach effort is intended to ensure that eligible individuals receive the financial assistance they are entitled to. Unclaimed Benefits The … Read more
The IRS Fresh Start Program is a set of initiatives designed to assist taxpayers who are struggling to meet their tax obligations. The program offers various relief options, including installment agreements, offers in compromise, and penalty relief. While participation in the Fresh Start Program can provide significant financial relief, it’s important to consider its potential … Read more