A consolidatedtax returnis a corporate income tax return of an affiliated group of corporations that elect to report their combined tax liability on a single return. This tax return allows for corporations that run their business through many legal affiliates to be viewed as one single entity. Co...
• If you are submitting a Social Security Number (SSN), use the same name format that appears on your Social Security card.• If you are submitting an Individual Taxpayer Identification Number (ITIN), use the number issued by the Internal Revenue Service (IRS).• If you are ...
1099 forms are crucial to you as an independent contractor. Learn what a 1099 form is and how you can use it to report your income.
Being well informed is the best way to ease the anxiety that comes with a letter from the Internal Revenue Service notifying you of a tax audit. First, know your rights, spelled out in the IRS publication “Your Rights as a Taxpayer.” Those include the right to privacy and confidentiality...
This is also known as the “not qualifying child test.” The following criteria must’ve applied: A child cannot have been your qualifying relative if they already qualified as the qualifying child of another taxpayer. Your relative must have fulfilled one of two conditions: either resided with...
Taxpayer identity number Insurance policy number Not every ID number is personal information. For example, in the United States: Every business is required to have an Employer Identification Number (EIN) for tax reporting purposes. Because an EIN is associated with a legal entity and not an indiv...
If you hire freelancers, or independent contractors, you should ask them to provide their name, address and Social Security number or tax identification (ID) number on a Form W-9, Request for Taxpayer Identification Number and Certification. This document is for your records and does not get ...
Basically, it means that the IRS expects both the taxpayer and spouse to do their due diligence to prepare an accurate tax return. Both spouses are equally responsible for the information on any Married Filed Jointly tax returns. If a couple receives an audit, which results in a balance due...
Generally, a person can qualify for reasonable cause or offshore voluntary disclosure in an effort to avoid penalties. Once a taxpayer is under audit or examination, they generally lose the right to submit to voluntary disclosure. Penalties also may be imposed under section 6662 for undisclosed fo...
Purpose of IRS Form 8821 The primary purpose of IRS Form 8821 is to grant a third-party designated individual or organization the authority to receive and access a taxpayer’s confidential tax information. This authorization allows the designated party to communicate with the IRS on behalf of the...