On October 8, 2019, the Internal Revenue Service (IRS) announced that private debt collectors can now accept direct debits from taxpayers. If a collection agency is handling your tax debt, this means that you can provide your banking details and let the agency take one or more payments directly from your checking or savings ... Read More
Tax Blog
Why Do We Pay Taxes? Types of Taxes & Where They Go
Why do people have to pay taxes? What does the government do with that money? If you've ever asked questions like this, you are not alone. When many people receive their paychecks, they wonder why their take-home pay is less than they earned. Similarly, if you work for yourself as a freelancer or a sole proprietor, you may also ... Read More
Why Are Tax Refunds Lower This Year? Spoiler Alert: Most People Actually Owe Less Tax
Why is my tax refund smaller than last year? On social media, thousands of users are posting this question, and their concerns are well-founded — tax refunds for the 2018 tax year are smaller than tax refunds from previous years. According to some sources, average refunds have dropped 8.7% from $2,135 to $1,949, and about a ... Read More
IRS Tax Audit – Guidelines, Procedure, Flags and More
IRS Audits can be grueling. You must provide accurate receipts, statements, invoices, books, and records. Your best bet may be to seek professional help, but here is a guide for those who want to handle an IRS Audit on there own. With most audits, get a professional’s help because the outcome typically far outweighs the ... Read More
Sales Tax Implications of the U.S. Supreme Court’s Wayfair Decision
The recent U.S. Supreme Court decision in South Dakota vs. Wayfair has opened the door for states to collect sales tax from online retailers who conduct business—but don’t have a physical presence within the state. The court overturned the case of Quill Corp. v. North Dakota. It established the physical presence rule in 1992. ... Read More
The Final Tax Bill Reduces the Estate Tax
If you're worried about the estate tax, the recent or final tax bill reduces the estate tax. The estate tax exemption has been doubled, helping thousands of American families to avoid this tax. Here's a look at what's changing and what's staying the same. The New Estate Tax Exemption Under the old rules, individual taxpayers ... Read More
IRS Tax Levies, Seizures, & Liens Fall With Audits At 10+ Year Low in 2017
The IRS yesterday released the 2017 IRS Databook. It provides an overview of the IRS's activities over the past fiscal year. In other words, it includes activities from October 1st, 2016 to September 30th, 2017. IRS enforcement actions, which include tax levies, liens, and seizures fell in comparison to the previous year. IRS ... Read More
When and How to Start Paying Estimated Tax for IRA Withdrawals
Regardless why, you’ve decided to withdraw money from your IRA. Therefore, you need to know what tax liability (if any) you’re responsible for and if you need to make estimated tax payments. If you don't pay estimated taxes, you may face an underpayment penalty. Paying estimated tax for IRA withdrawals is not uncommon. You need ... Read More
Do I Need to File Taxes? Minimum Income Required for Filing
Tax returns for 2017 are due on Tuesday, April 17, 2018. Do you need to file a tax return? It depends on your income, age, filing status, and a few other factors. Generally, if you earned more than the standard deduction plus one exemption, you need to file, but here are the specifics. Need to File a Tax Return If you are in ... Read More
Cryptocurrency and the IRS: What You Need to Know
With the price increases of nearly 500 percent in 2017, bitcoin has recently caught the eyes of a lot of investors and speculators, but the IRS has had its eyes on bitcoin for years now. If you use bitcoin or other cryptocurrencies for your business, you have to report the transactions, and in some cases, you may also need to ... Read More
