On June 2, 2014, the IRS began a pilot program to help small businesses who have failed to file tax returns related to certain types of retirement plans. Small businesses who take advantage of this program have until June 2, 2015, to obtain penalty relief from the normal penalties associated with failure to file.
When an individual who is a U.S. citizen, a holder of dual citizenship with the U.S. and another country, or a resident alien of the U.S. works or lives abroad during part of a given tax year, the individual likely needs to include activity from that time abroad on their tax return.
The title of this article may seem somewhat counterintuitive. Why would anyone want to reduce their tax refund?
While many people would rather get a refund than owe taxes come April 15, the fact is, if you are receiving a refund, you have given the government a loan. The IRS has withheld too much of your money throughout the tax year. Now through the process of filing your income tax return, you are getting your money back.
Members of the military, whether active service members or members of the reserves, have special tax deductions that are not available to the average citizen. As the vast majority of pay received by military service members is reported directly to the government and is taxable, military service members need to take advantage of every tax deduction available to them.
The IRS has issued a reminder to taxpayers of the importance of receiving and maintaining records to support their charitable donations before claiming those donations as deductions on their income tax returns. These reminders apply to charitable donations in general and for certain specific types of donation items.
If you work in an industry where you receive tip income, such as the food service industry, you should know that there are income tax implications related to that income. This article provides an overview of reporting tip income for income tax purposes.
Estimated taxes refer to the method that taxpayers use to pay income tax on income that is not subject to withholding by an employer. The most common income for which a taxpayer must pay estimated taxes is self-employment income, but income for which one must pay estimated taxes may also include alimony, awards, dividends, gains from the sale of an asset, gambling winnings, interest, and rent. Continue reading
Each year, the IRS publishes its list of the “Dirty Dozen”, the top tax scams that criminals seek to carry out. Criminals carry out the scams by taking advantage of people’s fears or misunderstanding of the tax law.
As each of us grows older and moves into retirement, we will not only earn less income, we may also find that our retirement savings are not going to stretch as far as we thought they might. Therefore, it is important to be frugal when it comes to expenses in retirement, including paying income tax.
As you gather W-2 forms, mortgage statements, and other materials to prepare your income tax return for 2014, there are certain rights afforded to every taxpayer by the IRS that you should know beforehand. The IRS formally adopted these rights, known as the Taxpayer Bill of Rights, in June 2014.