General Mills, in its case in the Claims Court against the IRS, alleged that the IRS erroneously collected from it close to $6 million in taxes during 2002-2006 tax years due to miscalculation of the duration for which interest was applicable. The IRS that long back acknowledged its mistake and sent a notice to the…
Doing your own taxes might seem tempting. You’d save tax preparer’s fee; and with a tax software, you can escape doing all the difficult paperwork. It’s a happy picture, except that even a minor human error can land you in big trouble. Change is one big factor that impacts your taxes. Change in your personal…
The Economic Impact Payment, also called stimulus payments, are automatically paid to eligible US residents through direct deposit and the mail. The IRS has started to mail $1,200 stimulus checks. According to the Taxpayer Advocate Service, “The IRS is playing a central role in administering the Coronavirus Aid, Relief, and Economic Security (CARES) Act and…
The past few years brought in many big changes in taxes: new tax forms, new tax credits, new tax rules, and changes in tax brackets. Many taxpayers are confused about how the changes impact them. Thankfully, the tax filing and payment deadline has been extended to July 15, 2020, which gives taxpayers three additional months…
Employers can defer the deposit and payments of their (the employer’s) share of Social Security taxes under The Coronavirus, Aid, Relief and Economic Security Act (CARES Act). The self-employed can also defer payment of certain self-employment taxes under the CARES Act. Before employers and the self-employed begin to defer certain taxes, it’s important to know…
The IRS took on Microsoft eight years ago for tax evasion, as the tax agency discovered that the multinational giant was avoiding paying billions in taxes in the U.S. by moving its profits to its Puerto Rico subsidiary. The IRS challenged them in court while Microsoft aggressively pursued their stance that they did nothing wrong….
Earning extra money from a side gig is rewarding, but it also comes with its own unique tax burden. If you work outside of your regular job as a freelancer, a waitress, a cab driver or a delivery driver; you need to think about your taxes. If your net earnings are $400 or more from…
Is your state tax-friendly? This is what retirees who are planning a move need to ask. California is famously known as a high-tax state, but it’s a surprise that it doesn’t come in the top 10 least tax-friendly states. If you are planning a move to a different state or buying property in another state,…
To help taxpayers cope with the coronavirus outbreak, the IRS has started sending Coronavirus stimulus payments, also called Economic Impact Payment. These payments are automatic for most taxpayers, including those who filed their tax returns in 2018 and 2019, and for most seniors and retirees. Others may need to provide additional information to the IRS…
Nobody enjoys tax filing, but it can be made easier if you make a few changes in how you prepare and file. Some of these changes can include how you organize your tax records, which platform you use to file your return, and switching to electronic mediums to file and receive your refund. Just a…
