Receiving correspondence from the IRS can be an intimidating experience for many taxpayers. Notices like CP75 or CP75A often raise concerns and questions about one’s tax situation. However, understanding what these notices entail and how to respond to them can alleviate anxiety and ensure a smoother resolution. In this guide, we’ll explore what Notice CP75 […]
What is Backup Withholding?
In the complex world of taxes and financial regulations, backup withholding is a concept that often raises questions for taxpayers. While it might sound intimidating, it serves a crucial purpose in ensuring tax compliance and preventing underreporting of income. Let’s delve into what backup withholding entails, why it’s implemented, and how it can impact individuals […]
Which TCJA Provisions are Expiring Soon?
Since its enactment in 2017, the Tax Cuts and Jobs Act (TCJA) has significantly impacted the American tax landscape, introducing a slew of changes aimed at reducing tax burdens for individuals. However, many of these provisions were designed to sunset after a set period. Most are slated to expire in 2025. As this deadline approaches, […]
A Breakdown of IRS Form W-2
Tax season often brings a sense of confusion and anxiety for many individuals, especially when faced with understanding complex tax forms. One such form, the W-2, plays a crucial role in the tax-filing process for employees. Understanding the W-2 form is essential for accurately reporting income and ensuring compliance with tax laws. In this article, […]
Where Do My Tax Dollars Go?
Every tax season, many of us are exposed to just how much of our income goes to the government. Many often wonder where tax dollars go. Taxes play a crucial role in sustaining a nation’s infrastructure, services, and public welfare. However, understanding where your tax money go can be a complex and often misunderstood aspect […]
Is My Side Business a Hobby or Small Business?
The desire or need for extra income has become increasingly prevalent. Running a small business can be a rewarding venture, allowing individuals to turn their passion into a source of income. However, it’s crucial to be aware of the Internal Revenue Service’s (IRS) perspective on small businesses, especially when they may be classified as hobbies. […]