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 […]
Can the IRS Seize a Legal Settlement If You Owe?
Dealing with the IRS is stressful enough, but when you’re expecting a lawsuit settlement, the stakes feel even higher. One of the most common questions taxpayers ask is: Can the IRS seize a settlement? The short answer: Yes, the IRS can seize or levy certain types of settlement payments if you owe federal tax debt. However, the long answer is far […]
How Much Do Billionaires Pay in Taxes?
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 […]
How to Apply for the IRS Fresh Start Program
Key Takeaways Millions of Americans face challenges with unpaid taxes, and the IRS Fresh Start Program offers a structured path to relief. Originally launched to help taxpayers overcome financial hardship without harsh collection actions, this initiative remains a vital lifeline for individuals and small businesses. If you’ve ever wondered how to apply for the […]
AI Tax Tools for Small Businesses
Artificial intelligence (AI) is reshaping the way small businesses handle taxes. What used to require hours of manual data entry, form-checking, and compliance tracking can now be automated and analyzed with remarkable accuracy. AI-powered tax tools give small business owners the power to simplify filing, minimize errors, and stay compliant, without needing to become tax […]
Active-Duty Military Tax Benefits: What You Can Deduct and How to Qualify
Military service comes with many sacrifices; and thankfully, the IRS recognizes that with special tax benefits for those who serve. From combat pay exclusions to deductions for moving costs and uniform maintenance, active-duty military members are eligible for a variety of tax breaks that can significantly reduce their overall tax burden. Understanding these benefits can […]
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 Lower Your Taxable Income in Retirement
For many retirees, tax planning doesn’t end when the paychecks stop; it becomes even more critical. Even if you’ve saved diligently, how and when you withdraw money from your retirement accounts can significantly impact how much you owe the IRS. Understanding how to lower your taxable income in retirement can help stretch your savings, preserve […]
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 […]