What Does ‘Accepted’ Mean for Tax Returns? When a tax return is marked as ‘accepted,’ it signifies that the Internal Revenue Service (IRS) has received and completed an initial screening of the return. This initial screening involves verifying that the return contains the necessary information, such as a valid Social Security number and correctly claimed … Read more
Understanding IRS Seizure Powers The Internal Revenue Service (IRS) possesses the authority to seize and sell property to satisfy unpaid tax debts. This power extends to jointly owned property, even if only one owner is responsible for the tax liability. IRS Seizure of Jointly Owned Property When the IRS seizes jointly owned property, the non-debtor … Read more
The act of giving monetary gifts to family members is a common practice, especially during the holiday season. However, it’s crucial to understand the legal implications and tax considerations associated with such gifts. This comprehensive guide will delve into the intricacies of gift-giving, outlining the limits, reporting requirements, and strategies to optimize your gifting practices. … Read more
Receiving unexpected money from the IRS can be confusing and raise questions about the source and purpose of the funds. This article aims to provide a comprehensive understanding of the various reasons why the IRS might send you money, helping you interpret the accompanying notice or letter and take appropriate actions. Reasons for Receiving Money … Read more
The Internal Revenue Service (IRS) is the federal agency responsible for collecting taxes and administering the Internal Revenue Code. The IRS may contact taxpayers for a variety of reasons, including to collect overdue taxes, to request additional information, or to conduct an audit. There are several ways that the IRS may contact taxpayers, including: By … Read more
The Internal Revenue Service (IRS) has a variety of methods at its disposal to locate your bank accounts, including: Tax Returns: When you file your tax returns, you are required to provide your Social Security number and bank account information for direct deposit of any refunds. This information can be used by the IRS to … Read more
The Internal Revenue Code Section 475(f) election, commonly known as the mark-to-market election, offers significant tax advantages to eligible taxpayers engaged in securities trading. By making this election, traders can potentially convert capital losses into ordinary losses, thereby maximizing their tax deductions and minimizing their tax liability. This guide will provide a comprehensive overview of … Read more
Filing your taxes on time is crucial to avoid penalties and interest charges from the Internal Revenue Service (IRS). However, there may be instances when you don’t owe any taxes or are due a refund. In such cases, you may wonder if filing a tax return is still necessary. Understanding the Failure-to-File Penalty The IRS … Read more
Understanding the Issue When an individual passes away with unpaid tax liabilities, the Internal Revenue Service (IRS) has the authority to pursue the debt from the deceased person’s estate. If the estate has insufficient assets to cover the tax bill, the IRS may seek payment from the surviving spouse or other beneficiaries. Estate Responsibility The … Read more
Understanding Tax Underpayment Penalties The United States tax system operates on a pay-as-you-go basis, requiring individuals to pay taxes throughout the year through withholding or estimated tax payments. Failure to meet these obligations can result in an underpayment penalty. Thresholds for Underpayment Penalties Generally, taxpayers can avoid underpayment penalties if they meet the following criteria: … Read more