The IRS has made changes to the way it handles identity verification for taxpayers who e-file their returns. This includes requiring taxpayers to submit a photo of themselves. In the past, taxpayers had to provide official documents, such as a passport or driver’s license, to prove their identity. Since then, the IRS has made the … Read more
When you have a child, you’ll want to file a return for that child with the IRS. Form 8615 is used when the child’s investment income is more than $1,900. The child’s tax return should have a section on the computation of tax on it. Otherwise, you’ll need to complete a separate 8615 Form for your child. As with … Read more
While many Americans may not realize it, the recent spike in gas prices has caused a huge increase in gasoline costs across the country. In April, the national average price for a gallon of gas was $4.95. President Joe Biden blamed the high price on Russia’s invasion of Ukraine. In response, the U.S. banned Russian … Read more
The average price of gas hit a record high of $6.44 a gallon in California last week. On Friday, it was at $6.35. That was higher than the national average of $4.93. But the rebate will help the majority of California taxpayers, even those who are not registered to vote. If you live in California … Read more
To apply for an employer identification number (EIN), you will need to file IRS Form SS-4. If you don’t have the necessary software or are confused as to how to file this form, we shared some tips here in order to fill the form correctly and efficiently. However, we remark a vital issue that if … Read more
In the event that you accept bets, you’re required to file a Form 730 monthly tax return. This document identifies all taxable wagers and collects the appropriate tax. The information on this form helps the IRS determine whether or not those accepting bets are correctly reporting these activities and paying the proper taxes. The form for this report expires … Read more
According to the Treasury Inspector General for Tax Administration, the IRS decided to destroy the data of an estimated 30 million filers due to old technology in March 2021. Officials announced that the decision was prompted by a paper filing backlog, which led to anger among the tax community. There is no doubt that such action damaged … Read more
Not all employers are required to file Form 941 for every quarter if the taxes withheld is less than $1,000 for the tax year. These employers can file Form 944 once a year and be done with this tax obligation – reporting payroll taxes. In a previous article, we’ve covered how you can file Form … Read more
Only preparing a copy of Form 1040 isn’t enough to complete your federal income tax return. There are plenty of tax forms you need to attach to Form 1040 every tax season. These tax forms give the Internal Revenue Service further information about your income other than what’s just reported on 1040. For example, you … Read more
The backup withholding rate is the amount a company must pay to the IRS to deduct taxes in the event of bankruptcy. There are a number of exemptions and penalties for not reporting and paying backup withholding, including giving false information. Whether you are an employee or a business owner, the Backup Withholding Rate is … Read more