What effect does marital status have on federal taxes?
What effect does marital status have on federal taxes?...
Tax Law
Are my chances of an IRS audit greater than they were in the past?
Although the Internal Revenue Service (IRS) has increased the number of IRS audits in the past decade, most taxpayers do not need to worry about being selected for a tax audit. The IRS spends most of ...
Who is most likely to be audited?
According to the Internal Revenue Service (IRS), tax returns are selected for audit by using a computer program called the Discriminant Inventory Function (DIF) system. This system gives each tax retu...
What property is subject to personal property tax, business property tax, or use tax?
In addition to federal taxes, each state and some counties impose their own set of taxes. States and counties can impose personal property tax, business property tax, or other taxes on goods or servic...
What is the reason for paying property taxes?
Property taxes are charged to landowners by local governments, essentially requiring that homeowners pay for the privilege of having land in a given area. The purpose of property taxes is to pay for t...
How long does the IRS have to collect back taxes?
The time period (called statute of limitations) within which the IRS can collect a tax debt is generally 10 years from the date the tax was officially assessed. For most cases, the IRS has 3 years fro...
How do governments collect taxes?
How do governments collect taxes?...
IRS Criminal Prosecution for Not Filing an Income Tax Return
Intentionally failing to file a tax return can result in stiff penalties including up to one year in prison and $100,000 in fines along with the prosecution costs. ...
Once my OIC is accepted, does interest still accrue?
Yes. Once your Offer in Compromise (OIC) is accepted, interest accrues but the taxpayer's requirement to pay it is suspended....
Where do my property tax dollars go?
The property taxes that you pay are used for a number of things such as road construction, the police and fire department, and organized recreation in your area. Fortunately, most or all of your prope...
What types of property are subject to tax?
What types of property are subject to tax?...
How is property classified?
Property is classified according to how it is used. For example, a state may have multiple classes of property, all of which are taxable....
What options do I have if I can’t afford to pay what I owe in property taxes?
If you cannot pay your property taxes in full, you may have a few options available to you. In most cases, the regulations regarding your payment options for your property taxes depend on the local go...
How can taxes go up when property values don’t?
Sometimes property tax rates can go up, even if property value does not. The likelihood of rising property tax rates combined with falling or steady home values can vary depending on what state you li...
Must I allow assessors to enter my home? And if so, what do they look for?
In most states, home owners can refuse to let assessors enter their property. There are even cases where homeowners call the police, and the assessors are arrested for trespassing. Many of these cases...
How is the basis of property determined for income tax purposes?
The basis is any property is the cost of the property plus any additions or improvements paid for over the life of the property. There are exceptions to this general rule. Property that is inherited ...
How often can I get audited? If my business gets audited, can the IRS audit my personal return?
There is no limit on how many times a taxpayer can be audited by the IRS. Typically, the IRS will initiate a second audit if they discover discrepancies during the first audit that gives them reason t...
Why did my insurance company appraise my home at a value lower than market value?
The main reason that an insurance company appraisal and independent home appraisal based on market value differ is because they look at two different things. The insurance company appraiser is focusin...
Federal Law Provides Tax Relief for Foreclosure Sales
If you have been forced to sell your home in foreclosure to satisfy a mortgage debt, you may receive a tax bill. Find out why the IRS can tax a foreclosure sale, and see how you can get relief from p...
What can I do to lessen my chances of being audited?
The IRS typically looks for discrepancies in the following: Schedule A (itemized deductions, Schedule C (profit or loss from a business) and Schedule F (profit or loss from a farm)....
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