This article explains how billionaires are taxed, why their effective tax rates differ, what the data shows about their real contributions, and how tax policy changes continue to affect what they pay. Understanding Billionaire Taxation Before exploring how much billionaires pay in taxes, it’s important to understand how the U.S. tax system works, and how the ultra-wealthy […]
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, […]
What Happens If You Ignore IRS Collection Letters? The Worst Case Scenario
If you’ve ever asked yourself, “can I ignore the IRS?”, you’re not alone. Many taxpayers feel overwhelmed by notices from the IRS and hope that ignoring them will make the problem disappear. Unfortunately, the reality is far more serious. Ignoring IRS collection letters can trigger a series of escalating actions, from mounting penalties to wage […]
The Difference Between a Tax Levy and a Tax Lien
Falling behind on your taxes can lead to serious consequences, but few IRS collection actions create more confusion, or fear, than tax liens and tax levies. Although the two terms sound similar, they represent very different stages in the IRS collection process. A tax lien is the government’s legal claim to your property as security […]
What Assets Can the IRS Seize?
It can be difficult and frustrating to deal with tax debt. You might be concerned about whether the IRS has the right to seize your assets if you owe taxes to them and haven’t taken steps to address the debt. Understanding which assets the IRS can seize is crucial for taxpayers, particularly those facing financial […]
Estimated Tax Payments: What Happens If You Miss a Quarter
If you earn income that isn’t automatically taxed through payroll withholding, like freelance work, consulting, investments, or small business profits, you’re expected to make estimated tax payments four times a year. These quarterly payments help you stay current with the IRS so you don’t end up with a surprise bill and penalties at tax time. […]