Need to handle the notice immediately in order to avoid penalties and interest; Role of the payroll department; Reading the notice carefully; Verifying whether a problem exists; Need to pay the missing amount immediately; Creating the correspondence to handle the IRS notice....
If you are taxed as an S-Corp or as a partnership, you need to file a Form 1120S or Form 1065. These forms are due by the 15th day of the third month following the close of the tax year, which for most taxpayers is March 15. You cannot send this form to the IRS wit...
An IRS tax settlement, called an offer in compromise, allows a taxpayer to pay a reduced amount of tax in either a lump sum (all at once) or short-term installments. To qualify for this agreement, taxpayers must prove to the IRS that they truly cannot afford their originally owed amount ...
The IRS offers a series of directions on its website to help US citizens figure out their taxes. Here’s a rundown of what’s available and where you can find it.
Free Fileis an IRS service through which all taxpayers can prepare their returns for free. Millions of taxpayers use it annually, but some aren’t aware that it’s available to them. The service is made possible through a partnership with theFree File Alliance. According to the IRS web...
Don’t worry about filing an amended tax return if the IRS corrects minor math errors on your return. Thankfully, the IRS will correct minor mistakes and will send you a notice and potentially a bill for the additional tax owed or a refund if you overpaid. ...
box may be checked when the IRS sent the filer notice twice in the last three calendar years that the payee used an incorrect TIN. But don’t check the 2nd TIN Notice box if you received the two notices from the IRS in the same year or if you received notices in different years ...
Sometimes fraudsters use a Social Security number to file a tax return and steal your tax refund or tax credit. Warning signs of taxpayer identity theft You may be unable to e-file because someone else has already filed under that Social Security number, you get an IRS notice or letter refe...
IRS form 8888 allows you to directly deposit part or all of your tax refund in an IRA. You can file a tax return claiming a tax deduction for an IRA deposit before the money is in the account as long as you make the contribution by your tax filing deadline. “Don’t forget to...
We should note that FFO gets closer to cash flow than net income, but it does not capture cash flow. Mainly, notice in the example above that we never counted the $1 million spent to acquire the building (the capital expenditure). A more accurate analysis would incorporate capital expenditur...