No one wants to face the tension of the vigorous tax audits conducted by the IRS every financial year. The chances of getting audited by the IRS depend on various factors. Let’s see some factors that can increase these chances, even though it is not possible to tell with full certainty who will face a tax audit and who will not. [Read more…]
Big Companies are Managing to Escape Taxman’s Net
The auditing of tax returns of big companies has decreased in the last few years even though the federal government has reiterated many times that it will crackdown on the big guys who are trying to decrease their tax liabilities. Last year, only one-fourth of the big league companies were audited. [Read more…]
Making Work Pay Tax Credit Leads to Confusion
The tax credit scheme Making Work Pay is a part of the American Recovery and Reinvestment Act of 2009, signed into law by President Obama in February last year.
This scheme affects 95% of the American population and has been undertaken by the Obama government in an effort to credit a few extra dollars in to the accounts of Americans to increase their disposable income. This will lead to a multiplier effect, which is expected to infuse as much as $65 billion in the economy and act as yet another stimulus for economic recovery. [Read more…]
Follow IRS Advice to Make Tax Filing Simpler
The upcoming tax filing deadline is giving most Americans headaches and sleepless nights. But the IRS is doing its bit to help people by asking them to stay informed about the latest changes in policies so that they can benefit from the new tax breaks announced as part of President Obama’s economic reconstruction program. [Read more…]
Spending Your Tax Refund Wisely
You could be among the 90% of American taxpayers who are going to get tax refunds this year from the IRS. Although you might be tempted to blow the money on a shopping spree or a holiday, don’t forget that the economy has still not recovered fully. Spend your tax refund wisely so that you get maximum benefit out of the money. Here is some advice on spending your tax refund money. [Read more…]
Filing Your Tax Return Need Not Be a Taxing Task
As every tax season draws to a close, most Americans inevitably find themselves stressed out about filing their returns and getting them done in time. Many a time last minute tax calculation and filing can cause oversight and error, and the taxpayer may end up paying more than he or she needs to or vice verse. To make tax filing a less painful experience, a few tips can help. [Read more…]
Avoiding Common Mistakes when Filing Tax Returns
Filing tax returns is a laborious and complicated task that we have to perform every year. There are some simple mistakes that are often made by people while filing tax returns, which can lead to delays in refunds, extra procedural formalities, hassles and stressful meetings with an IRS representative. The good news is that you can avoid this headache by following some simple guidelines. [Read more…]
File Your Tax Return Online It’s Faster, Safer and More Convenient
As the deadline of 30th April for the tax filing is approaching, Internal Revenue Service (IRS) has stepped up efforts to spread awareness about tax filing procedures and help. To make the tax filing process easier, faster and safer, the IRS has been continually educating taxpayers and encouraging them to opt for e-filing than the traditional offline way. [Read more…]
IRS to Hold 1,000 Open Houses & Offers Assistance to Taxpayers in Distress
RS Commissioner Douglas Shulman has announced 1000 open houses at various venues across the country to allow distressed taxpayers to meet IRS officials and get a potential resolution to their tax troubles. The list of the venues and time of these open houses is given on the IRS website. [Read more…]
Get Paid for Reporting Tax Evasion
With the tax filing deadline just around the corner, you must already be trying to find ways to reduce your tax liability. But what you may not be aware of is that you can actually earn a reward by reporting a case of tax evasion to the IRS.
The Whistleblower Informant Award program of the IRS has been around for a long time but very few people have taken advantage of it. Under the program, you stand to earn a reward of as much as 15 percent of the amount that the tax cheat owes, as long as it does not exceed $10 million. Another program, which is targeted towards bigger tax cheats, awards 15 percent to 30 percent of the total amount that the IRS can recover. However, this is only applicable to cases where the amount owed exceeds $2 million. [Read more…]
4 Tips to Avoid an IRS Audit by Steering Clear of Red Flags
There is often nothing more annoying, stressful, and downright upsetting than finding out you have been selected for an audit. The questions that come around are almost impossible to answer and the entire process is intimidating and never pleasant. [Read more…]
