Failing to make an estimated tax payment can lead to penalties and added stress. If you’ve missed a payment, don’t panic—there are ways to address it and minimize the consequences. Here’s what you need to know. Estimated Tax Payment Basics Most taxpayers operate on a calendar year, meaning estimated tax payments are due on the […]

Injured Spouse Relief is a provision that helps taxpayers who have their federal tax refund garnished to pay a debt owed solely by their spouse. This debt can include federal agency debts, past-due child support, state income tax debt, and state unemployment compensation debt. When a married couple files jointly, and one spouse is responsible […]

E-commerce businesses rely heavily on remote sales to reach customers but must navigate complex state and local tax obligations. Following the 2018 Supreme Court decision in South Dakota v. Wayfair, all states with a statewide sales tax require remote sellers to collect and remit sales tax once they surpass a certain economic nexus threshold. Failure […]

Owing taxes to the IRS can be overwhelming, but there are options to reduce or manage your debt. Understanding the collection process and knowing what steps to take can help prevent financial distress. Below is a summary of the available options to deal with tax debt. Collection Process When taxes aren’t paid by the filing […]

If you’ve received an IRS penalty notice, you may not need to pay it immediately. The IRS imposes various penalties for late tax returns, unpaid taxes, and failure to deposit employment taxes, but there are options to have these penalties reduced or removed entirely. Here’s how you can handle it. Common IRS Penalties The IRS […]

When you turn 70½, you gain the opportunity to use your IRA for charitable contributions in a tax-efficient manner. This strategy allows you to make charitable donations directly from your IRA, known as Qualified Charitable Distributions (QCDs), which can potentially offer significant tax advantages compared to withdrawing funds from your IRA and donating them personally. […]

The Qualified Business Income (QBI) deduction, introduced by the Tax Cuts and Jobs Act (TCJA), offers a valuable opportunity for business owners to reduce their tax liability by up to 20% of eligible business income. This deduction applies to income from sole proprietorships, partnerships, S corporations, and other pass-through entities, as well as some dividends […]

As 2024 comes to a close, it’s crucial to review your stock portfolio to implement strategies that minimize taxes. By making some strategic moves, you can avoid paying high taxes on short-term capital gains and lower the tax rate on your gains, potentially reducing it to 23.8% or even 0%. Here are seven strategies to […]

When a borrower’s debt is canceled, it generally results in a Cancellation of Debt (COD) income, which is taxable under federal law. However, several essential exceptions allow this income to be excluded from taxes, depending on the circumstances. Here’s an overview of when and how COD income can be tax-free: General Rule: COD Income Is […]

A key question for many Airbnb hosts and vacation property owners is whether they owe self-employment tax on the income they earn from renting out their properties. The IRS addressed this issue in **Chief Counsel Advice (CCA) 202151005**, which provides insights into the treatment of rental income for self-employment tax purposes. However, it’s important to […]