The Internal Revenue Service (IRS) has a vested interest in tracking the movement of money, especially when it comes to large sums. This includes gifts, which are subject to gift tax if they exceed a certain amount. The IRS has several methods at its disposal to discover unreported gifts, including: Form 709: This form is … Read more
Yes, the IRS can seize your IRA or 401(k) for back taxes. However, there are rules about how much the agency can take at once. The IRS may also seize pension money you have a right to receive now or in the future, known as vested pension rights. What Kinds of Accounts Can the IRS … Read more
Filing taxes can be a daunting task, and even the most diligent taxpayers can make mistakes. While some errors may be minor and have no significant consequences, others can result in penalties and interest charges from the Internal Revenue Service (IRS). Understanding the potential penalties for tax mistakes is crucial to avoid costly surprises 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
No, you cannot ignore an IRS audit. If you receive an audit notice from the IRS, you are legally obligated to respond. Failure to respond can result in severe penalties, including: Automatic assessment of the proposed tax liability Loss of your appeal rights within the IRS Collection action, such as wage garnishment or bank account … Read more
Individuals who receive income from the sale of stocks, bonds, or other securities typically receive a Form 1099-B from their broker. This form reports the proceeds from these transactions and is essential for accurate tax reporting. Choosing the right tax software can simplify the process of entering and managing Form 1099-B data. This guide will … Read more
Taxpayers who have yet to receive their 2021 tax refund may be wondering about the reasons for the delay. This guide will explore potential causes and provide guidance on how to check the status of your refund and resolve any issues. Common Reasons for Refund Delays Errors on the tax return: Mistakes or omissions on … Read more
Failing to pay your taxes can have severe consequences, including penalties, interest, liens, levies, and even wage garnishment. The severity of these consequences depends on the amount of taxes owed. This article will specifically focus on the consequences and options available to taxpayers who owe between $10,000 and $49,999 to the Internal Revenue Service (IRS). … Read more
Navigating an IRS investigation can be a daunting experience, but understanding the signs and taking proactive steps can significantly improve your chances of a favorable outcome. This comprehensive guide will delve into the telltale indicators that the IRS may be investigating you, empowering you with the knowledge to protect your rights and interests. Signs of … Read more
The question of who bears the greatest tax burden in the United States has been a subject of ongoing debate. This comprehensive analysis delves into the latest data from the Internal Revenue Service (IRS) and the National Taxpayers Union (NTU) to provide a detailed understanding of the distribution of income tax payments across various income … Read more