401(k) plans are employer-sponsored retirement savings accounts that offer tax advantages. Withdrawals from a 401(k) account are generally subject to income tax and may be subject to a 10% early withdrawal penalty if taken before age 59½. However, there are exceptions to these rules, and the frequency of withdrawals you can make from your 401(k) … Read more
Navigating the complexities of tax debt can be daunting, and considering an Offer in Compromise (OIC) may be a viable option for resolving your tax obligations. While both accountants and attorneys can assist with the OIC process, their fees and services may differ. This comprehensive guide will delve into the costs associated with hiring an … Read more
Navigating the complexities of tax filing can be daunting, especially when concerns about safety and security arise. This guide delves into the world of free tax filing, exploring the available options and addressing the crucial question: is free tax filing safe? By analyzing authoritative sources from the Internal Revenue Service (IRS) and NerdWallet, we aim … Read more
The IRS generally has three years from the date you file your tax return to audit it. However, there are some exceptions to this rule. For example, if you file a fraudulent return, the IRS can audit it at any time. If you are selected for an audit, the IRS will send you a letter … Read more
Losing your job can be a stressful and financially challenging experience. If you find yourself unemployed, you may be eligible for Pandemic Unemployment Assistance (PUA), a federal program that provides financial assistance to individuals who are unable to work due to the COVID-19 pandemic. To qualify for PUA, you must meet certain eligibility requirements, including … Read more
What is a Federal Tax Lien? A federal tax lien is a legal claim by the Internal Revenue Service (IRS) against your property when you fail to pay your tax debts. This lien secures the government’s interest in your property, including your home, until the debt is satisfied. How Does a Tax Lien Affect Your … Read more
Understanding the Taxability of Savings Account Interest In general, interest earned on savings accounts is considered taxable income by the Internal Revenue Service (IRS). This means that you may be required to pay federal and state taxes on the interest you earn each year. The amount of tax you owe will depend on your tax … Read more
Inheritances, whether received in the form of cash, investments, or property, are generally not considered taxable income for federal tax purposes. However, when it comes to determining eligibility for financial aid, the treatment of inheritances becomes more nuanced. This article delves into the specific regulations governing the reporting of inheritances on the Free Application for … Read more
Understanding IRS Special Agents The Internal Revenue Service (IRS) employs Special Agents as part of its Criminal Investigation (CI) division. These agents are tasked with investigating suspected criminal violations of tax laws. Circumstances for a Home Visit IRS Special Agents may visit a taxpayer’s home in specific situations, including: Overdue tax bills Unfiled tax returns … Read more
Tax avoidance refers to legal strategies employed to reduce tax liability without violating tax laws. It differs from tax evasion, which involves illegal means to avoid paying taxes. This guide will delve into the concept of tax avoidance, exploring its various forms and providing real-world examples. Forms of Tax Avoidance Tax avoidance techniques can be … Read more