Owing back taxes is a stressful situation for many Americans. With it comes fear over what the IRS can do to collect. One common concern is whether your hard-earned retirement savings, specifically your 401(k), are at risk. The short answer: yes, the IRS can take your 401(k) under certain conditions. But it’s not their first […]
Tax Shelters: Meaning, Examples & How They Work
Tax shelters have long been a topic of interest and controversy in the world of finance and taxation. They can serve as valuable tools for individuals and corporations seeking to minimize their tax liabilities. However, the use of tax shelters often raises ethical and legal questions. This article dives into what tax shelters are, how […]
What is Currently Not Collectible Status?
Facing IRS tax debt when you can barely pay for rent, food, or basic living expenses creates a level of stress few taxpayers are prepared for. Fortunately, the IRS provides a form of temporary hardship relief known as Currently Not Collectible (CNC) status. When granted, CNC pauses enforced collection actions, giving you breathing room without […]
What You Need to Know About the Tax Underpayment Penalty
Taxes are an essential part of a functioning society, providing the government with the necessary funds to provide public services. However, when it comes to paying taxes, many individuals and businesses may find themselves making mistakes or underestimating their obligations. This can lead to tax underpayment, a situation that often incurs penalties. In this article, […]
How to Fill Out a W-4
Key Takeaways: When taxpayers notice smaller-than-expected refunds, it’s often due to an outdated Form W-4. Many people don’t realize that a W-4 needs to be updated whenever certain life changes occur, and failing to do so may leave you with too little tax withheld throughout the year. This can result in a smaller refund, or […]