Category Archives: General Filing
On July 18, 2024, the Internal Revenue Service (IRS) finalized rules regarding the withdrawal of funds from inherited retirement accounts. These new regulations state that most beneficiaries must withdraw a minimum amount each year over a 10-year period. This is a significant change from the previous policy, which allowed heirs to stretch withdrawals over their […]
— Read more
The IRS has issued new guidance on June 20, 2024, regarding exceptions to the 10% additional tax for certain emergency distributions and distributions to domestic abuse victims, as outlined in Notice 2024-55. Background Under IRC Section 72(t)(1), distributions from qualified retirement plans are typically subject to a 10% additional tax unless they meet certain exceptions. […]
— Read more
The term “Backdoor Roth IRA” refers to a strategy employed by individuals with higher incomes who are ineligible to directly contribute to a Roth IRA due to specific income limits. Instead of making a direct Roth contribution, these individuals contribute to a non-deductible traditional IRA and subsequently convert it into a Roth IRA. A Roth […]
— Read more
In a significant development that spells trouble for gig economy workers and consultants, the Internal Revenue Service (IRS) has sharply increased the penalty for tax underpayments. The penalty, which has nearly tripled since 2021, has now reached 8% as of October 1, a considerable jump from the 3% rate observed just two years ago. This […]
— Read more
Receiving a tax refund is often a welcome financial boost, but what happens when the expected windfall falls short? Many taxpayers have found themselves in the perplexing situation of not receiving their full tax refund from the Internal Revenue Service (IRS). Before delving into the reasons for an incomplete tax refund, it’s crucial to grasp […]
— Read more
The Internal Revenue Service (IRS) has introduced an enhanced chatbot technology to promptly address basic queries for individuals who have received notifications regarding potential tax underreporting. This new chatbot feature is designed to support taxpayers who have received notices like CP2000, CP2501, and CP3219A. These communications inform taxpayers when the IRS’s tax information from third […]
— Read more
The utilization of tax withholding can be employed to avoid penalties for underpayment of taxes. Income taxes withheld from wages are considered to be paid evenly throughout the tax year, unless the taxpayer can provide evidence of the specific dates when the amounts were actually withheld. This rule provides taxpayers with three strategies to reduce […]
— Read more
The Form 1040, also known as the “U.S. Individual Income Tax Return,” is the primary form used by taxpayers to report their annual income and tax liability to the Internal Revenue Service (IRS). Every year, the IRS releases updated versions of the Form 1040 and its associated schedules and instructions, to reflect any changes in […]
— Read more
Millions of taxpayers who owe $5 or more in back taxes have already received CP14 warnings from the IRS politely reminding them that the IRS needs their money. Immediately following tax season, the IRS is not very active in collecting. They have a lot of work to do, after all. But by the end of […]
— Read more
Use Form 9465 to request a monthly installment plan if you cannot pay the full amount you owe shown on your tax return, or if the IRS determines that you cannot pay any of your tax debt, they may report your account as currently not collectible and temporarily delay collection until your financial condition improves. […]
— Read more
