Estate taxes carry some of the highest tax rates in the
IRS tax code. In fact, it’s not uncommon for wealthy individuals who have died to have their estates decimated by income taxes due to poor planning. In these cases, heirs may end up with very little property or assets, even though the estate was worth a large amount of money. To distribute an estate in the best possible way for heirs, individuals should look into methods that reduce the
taxable amount of their estates. If they do, they'll be able to lessen the impact of tax rates on their heirs.
Read More >
Recent Posts
Identity theft has become a worldwide problem, affecting many consumers and damaging their credit scores, their bank accounts, and even their employment. But did you know that identify theft can also cause trouble for you at tax time? Unfortunately, falling victim to identity thieves can make tax filing a real hassle, especially if you're expecting a sizable refund. Here's a primer on what you can do if identity theft interferes with your tax filing.
Gambling winnings are completely taxable by the Internal Revenue Service. While this can be disappointing to taxpayers who win prizes or cash as a result of gambling, they may be relieved to hear that their gambling losses may be completely deductible as well. Those who win any prize of value from gambling activities should learn how to properly report them so that they can comply with the IRS standard for gambling winnings.
Read More >
If you're facing tax trouble such as a review or an audit, you may be wondering where you can turn for assistance. Many taxpayers are familiar with tax professionals such as certified public accountants (CPA) and tax attorneys, but another valuable resource for tax assistance is an IRS enrolled agent (EA). Enrolled agents are highly trained and qualified to provide tax advice and help for just about any possible situation.
U.S. citizens who are living abroad are still required to
file a federal income tax return. This is true, even if they are no longer earning any income from activities based in the U.S. However, while these individuals are obligated to file, they may not be obligated to pay any tax on their earnings. This tax break is available under a provision called the Foreign
Income Exclusion. To take advantage of this arrangement, it is important to understand how to qualify for it.
Read More >
Individuals who have immigrated to the United States must abide by the IRS rules for resident and non-resident aliens. While there are special considerations for these individuals who file tax returns, they are still required to submit their returns on the annual deadline along with naturalized U.S. citizens. The IRS allows for three categories of immigrants: resident aliens, non-resident aliens, and dual status taxpayers. Choosing the proper tax status is important because it directly affects the way immigrants file their returns.
Taxpayers who are selected for auditing by the Internal Revenue Service may not know that they have the option to appeal the agency's findings. Those who do appeal have the opportunity to defend themselves in tax court. While the idea of defending yourself against the IRS can be daunting, appearing in the tax court doesn't have to be a frightening experience. If you decide to appeal your audit findings, learning about the tax court process can help you prepare for making your case.
An IRS wage garnishment is an extremely difficult process to deal with. The federal government has given the Internal Revenue Service the authority to garnish employee earnings, and the agency often resorts to this action in severe cases of back tax debt. Once the IRS begins garnishing your wages, it will generally continue to do so until the entire tax bill is paid in full, no matter how long that takes. Despite its authority, the IRS has to follow certain wage garnishment guidelines.
Have you been hit with a notice that the Internal Revenue Service (IRS) will be "examining" your income tax return? If so, you're being audited. The fear of an IRS audit is enough to intimidate many taxpayers into complying with whatever calculations the agency comes up with. However, IRS agents can make mistakes during tax preparation too, and you shouldn't feel pressured to agree to their findings right away. The good news is that the agency makes it relatively easy for taxpayers to file an appeal of their audits.
When the tax deadline approaches, many business owners may be worrying about the IRS fines and penalties they could face. Some of these fees are associated with the IRS filing process itself, but others may be assessed after an IRS review of a completed return. What are some of these fines? How can an entrepreneur avoid these penalties? Here are some small business tax suggestions for escaping the most common IRS penalties.
