What is an amended tax return? Form 1040-X allows you to make corrections for your taxes–known as an amended return. Fortunately, it’s fairly easy to make corrections. Read this article to learn when you might need to make changes and how to file your
Note: The content of this video applies only to taxes prepared for 2010. It is included here for reference only. Social security tax is collected by the government to fund the benefits of retirees and those unable to work. Discover how much you owe in so
A digital accounting system always leaves an audit trail. Every time there’s a transaction, an accounting software tool will record when it occurred, who handled it, and whenever each step of the payment process happened. Miscommunication is all too common in every company. One employee may ha...
Request a corrected 1099-K. If the error is confirmed, ask the issuer to send you and the IRS a corrected version. Report discrepancies on your tax return. If the form isn’t corrected in time, you may need to report the incorrect 1099-K income but adjust it properly on your return....
Transparency: Anyone should be able to see, audit, and refine any step in the end-to-end data preparation process that took place Repeatability: Data preparation is notorious for being time-consuming and repetitive — data preparation can take up to 80% of the time spent on any analytics pro...
Today, there is an increasing demand for cloud-based accounting software. When accounting software is “in the cloud,” it simply means that the application runs on a network of remote servers instead of at a company’s location. The cloud offers a more affordable alternative for accounting sof...
What Is a Tax Audit? “A real audit starts with the fact that the IRS computer has identified a difference in the average percentage of write-offs on the return,” Marc Dombrowski, enrolled agent in Hamburg, New York, says. The IRS computer system compares your tax return with...
By diligently tracking qualified medical expenses, individuals can ensure accurate reporting on Form 5498-SA, maximize the tax advantages of their HSA, and provide the necessary documentation in the event of an IRS audit or verification of medical expenses. It is a prudent practice that should be...
Itemizing a tax return may be more administratively burdensome. Itemizing requires careful recordkeeping and accurate calculations. The IRS may ask for documentation, such as receipts or statements, to verify your deductions. The IRS is also more likely toauditreturns that itemize, particularly if th...
to track an employee’s income and tax liability. If the income reported on an employee’s taxes doesn’t match the income reported on the Form W-2, the IRS may audit the taxpayer. Taxpayers must report all salary, wage, and tip income even if that income is not reported on a W-...