Tax season is upon us. Taxpayers throughout the country are likely organizing tax forms and getting the new paperwork or computer programs ready for the upcoming filing deadline.
The United States government requires taxpayers to make tax payments throughout the year. Taxpayers often meet this obligation by withholding tax payments from their paychecks or making estimated tax payments throughout the year. However, if a taxpayer fails to pay a certain percentage of his or her tax obligation throughout the year, the Internal Revenue Service (IRS) will issue a penalty.
The Internal Revenue Service (IRS) has had to cut down significantly on the size of its workforce. Due to the reduced workforce, the agency has stated it struggles to keep up with investigations. As a result, the agency has needed to take steps towards increased efficiency.
Taxpayers who claim the Earned Income Tax Credit (EITC) are at an increased risk of an audit compared to those who do not. The reason: it is a tax credit often claimed in error. Last year alone the Internal Revenue Service (IRS) audited 381,000 taxpayers that claimed the EITC. This translates to over one-third of all audits conducted by the agency.
Recent tax reform has changed the way taxpayers will do taxes for the 2018 tax year. The new law increased the standardized deduction, meaning many taxpayers will prefer to use the standardized deduction instead of the itemized approach. Before you decide which is best for your family, take a minute to review some of the more popular deductions that remain applicable in 2018.
Business owners must navigate a wide range of tax obligations. A failure to properly abide by these obligations can lead to an audit and, depending on the findings of the audit, allegations of criminal wrongdoing.
There are many tax strategies that can help reduce your tax bill, some more complex than others. But putting aside money into a retirement account is one relatively easy step that can save everyone money. The step is like a one-two punch — not only are you taking money out of your taxable income but you are also putting it away for use in the future.
Dealing with taxes every April is bad enough. One thing that can make tax-related stress even worse is getting a notice that you are also the subject of an audit by the Internal Revenue Service (IRS).
The Trump administration touted the Tax Cuts and Jobs Act (TCJA) as tax reform that led to savings for most taxpayers. Although taxpayers will experience a doubled standard deduction and higher tax credits, there are some things that were taken away that may also impact your future tax returns.
Taxes are due within the next couple of days and the pressure of getting taxes in on time can result in errors. It is important to slow down and avoid errors as some of these errors can lead to a closer look by the Internal Revenue Service (IRS).