Many people assume that the taxes in the U.S. are more severe than in other developed countries. However, facts prove that the US has a much more relaxed tax system, and a tax scale that is far lower than most European countries. The Tax Foundation, a leading independent tax policy nonprofit in the US, carried…
The tax season began on January 24th, 2022, 17 days earlier than last year. This tax season will be especially challenging for both the IRS and taxpayers due to the pandemic. Though the IRS said that it had been making preparations for the 2022 tax season for months, there could be processing delays. In order…
Non-fungible token (NFT) is a unique digital asset that can be sold or traded. An NFT is recorded, stored, and transferred on a blockchain, which is a kind of digital ledger, and can be purchased or sold using cryptocurrency or legal tender currency such as the U.S. dollar. In NFT, the term ‘non-fungible’ means…
California is considering increasing its taxes by $12,250 per household. This would double the taxes currently being paid by taxpayers whose income source is in California. The proposal to increase taxes is made to fund a single-payer healthcare system and healthcare cost control system. In California, both residents and non-residents are required to pay…
With keeping in view the disruptions caused by the Coronavirus pandemic, the IRS has extended the Continuity Safe Harbor applicable to renewable energy production tax credit (PTC) and investment tax credit (ITC). This gives renewable energy developers more time to complete their projects. The IRS notice also provides a 3½ Month Safe Harbor for services…
The coronavirus pandemic has caused the IRS to delay its report to the Congress regarding reforms in the agency. Presently, the IRS has its hands full with sending out coronavirus stimulus checks, processing returns, and issuing refunds. A few weeks back, the tax agency had to recall 10,000 employees from the office for “mission-critical functions”…
Employee Retention Tax Credit (ERTC), or Employee Retention Credit, is a refundable tax credit that allows employers to reduce their employment taxes. Considering the struggle many small and medium-sized businesses are facing due to the Coronavirus pandemic, this tax credit is an effort to provide some financial relief to them. Employers whose employment tax deposits…
The IRS has announced that the agency will suspend most collection activities starting March 30, 2020, till July 15, 2020. The IRS is struggling with managing many of its essential services during the coronavirus pandemic. With the tax filing extended until July 15, 2020, the IRS will need to concentrate its efforts on processing returns…
The Paycheck Protection Program (PPP) of the U.S. Small Business Association (SBA) is a loan that helps businesses retain their employees during the coronavirus pandemic. SBA is forgiving loans of those employers who keep all their employees on the payroll for eight weeks and use the money for payroll, rent, mortgage interest, or utilities. According…
Stimulus checks have reached millions of Americans and more are underway. Most people are spending this money on essentials such as food and paying bills. The question that many of those who received stimulus payments are asking is – Are these stimulus checks taxable? The answer is no. Stimulus payments you receive are not counted…
