What is a Gift Tax Return? A gift tax return is a form that individuals must file with the Internal Revenue Service (IRS) to report any gifts they have given that exceed the annual gift tax exclusion amount. The purpose of the gift tax return is to determine if any … …
Federal Tax Filings 1. Individual Tax Return 2. Filing Deadlines The filing deadline for federal tax returns is typically April 15th of each year. However, if the 15th falls on a weekend or holiday, the deadline is extended to the next business day. It is important to file your federal … …
Tax Filings Overview Tax filings are an essential part of the financial responsibilities of individuals and businesses. It is a process where taxpayers report their income, expenses, and other relevant financial information to the government authorities. The information provided in tax filings is used to calculate the amount of tax … …
What is a Joint Return? A joint return is a type of tax return that married couples can file together. It allows them to combine their income, deductions, and credits on a single tax return. This is in contrast to filing separate returns, where each spouse reports their own income … …
Examples of Tax Underpayment Penalties 1. Failure to Pay Penalty: This penalty is imposed when you don’t pay your taxes by the due date. The penalty is calculated based on the amount owed and the number of days the payment is late. It can range from 0.5% to 1% per … …
What is a Notice of Assessment (NOA)? A Notice of Assessment (NOA) is an official document issued by the tax authorities to inform taxpayers about the assessment of their tax returns. It is a crucial communication tool that provides taxpayers with important information regarding their tax obligations and liabilities. The … …
What is the Joint Return Test? The Joint Return Test is a requirement set by the Internal Revenue Service (IRS) that determines whether a married couple is eligible to file their taxes jointly. When a couple files a joint tax return, they combine their income, deductions, and credits, and are … …
Filing Status: What it Means on Your Taxes What is Filing Status? Filing status is a category that defines your marital status and household situation for tax purposes. The Internal Revenue Service (IRS) offers five different filing statuses: Single Married Filing Jointly Married Filing Separately Head of Household Qualifying Widow(er) … …
Enrolled Agent (EA) Overview To become an Enrolled Agent, individuals must pass a comprehensive three-part exam administered by the IRS. The exam covers a wide range of topics, including individual and business tax returns, tax planning, and ethics. Once individuals pass the exam, they must also undergo a background check … …
Electronic Filing: Definition, Options, Advantages There are several options available for electronic filing, depending on the country and the specific requirements of the tax authorities. Some common methods include: Option Description Online Filing This method allows taxpayers to file their returns directly through the tax authority’s website. It typically involves … …
What is Electronic Federal Tax Payment System (EFTPS)? The Electronic Federal Tax Payment System (EFTPS) is a free, secure, and convenient way for individuals and businesses to pay their federal taxes electronically. It is offered by the U.S. Department of the Treasury and allows taxpayers to make tax payments online … …
Backup Withholding Definition: How It Works and Who Is Subject Backup withholding is a tax withholding method used by the Internal Revenue Service (IRS) in the United States. It requires certain payers to withhold a specific percentage of payments made to individuals or entities and remit it to the IRS. … …
Amended Tax Return: Filing Requirements, Process, and Deadlines An amended tax return is a form that you file with the Internal Revenue Service (IRS) to correct any errors or omissions on your original tax return. It allows you to make changes to your income, deductions, credits, or filing status. However, … …
What is a 90-Day Letter? The 90-Day Letter outlines the specific adjustments made by the IRS and provides the taxpayer with a deadline of 90 days to either agree with the proposed changes and pay the additional taxes, or to dispute the findings and request a hearing with the IRS … …