What effect does marital status have on federal taxes?
What effect does marital status have on federal taxes?
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Are my chances of an IRS audit greater than they were in the past?
Although the Internal Revenue Service (IRS) has increased the number of IRS audits in the past decade, most taxpayers do not need to worry about being selected for a tax audit. The IRS spends most of its time and resources pursuing very high income taxpayers and corporations. Taxpayers who earn less than $100,000 need not worry as long as they are honest and file their tax returns on time. The IRS selects tax returns for tax audit by using a computer program called the Discriminant Inventory Function (DIF) system.
→ Read MoreWho is most likely to be audited?
According to the Internal Revenue Service (IRS), tax returns are selected for audit by using a computer program called the Discriminant Inventory Function (DIF) system. This system gives each tax return a numerical score. Nearly all tax returns that receive a high DIF score are audited because the IRS believes that there is a good chance that after auditing high DIF score tax returns, there will most likely be a change in the amount of tax owed by the taxpayer.
→ Read MoreWhat property is subject to personal property tax, business property tax, or use tax?
In addition to federal taxes, each state and some counties impose their own set of taxes. States and counties can impose personal property tax, business property tax, or other taxes on goods or services. The types of property, goods, or services that are taxable vary by state and county.
→ Read MoreWhat is the reason for paying property taxes?
Property taxes are charged to landowners by local governments, essentially requiring that homeowners pay for the privilege of having land in a given area. The purpose of property taxes is to pay for the necessary infrastructure that keeps towns and cities operating efficiently. Typically property taxes will support the local police and fire department. Property taxes also generally pay for the public school system; this may be included in your general property tax bill or you may receive a separate bill for “school taxes” depending on where you live.
→ Read MoreHow long does the IRS have to collect back taxes?
The time period (called statute of limitations) within which the IRS can collect a tax debt is generally 10 years from the date the tax was officially assessed. For most cases, the IRS has 3 years from the date the return was filed to audit a tax return and determine if additional tax is due. The time to audit taxes can be extended.
→ Read MoreHow do governments collect taxes?
How do governments collect taxes?
→ Read MoreIRS Criminal Prosecution for Not Filing an Income Tax Return
Intentionally failing to file a tax return can result in stiff penalties including up to one year in prison and $100,000 in fines along with the prosecution costs.
→ Read MoreOnce my OIC is accepted, does interest still accrue?
Yes. Once your Offer in Compromise (OIC) is accepted, interest accrues but the taxpayer’s requirement to pay it is suspended.
→ Read MoreWhere do my property tax dollars go?
The property taxes that you pay are used for a number of things such as road construction, the police and fire department, and organized recreation in your area. Fortunately, most or all of your property taxes typically remain inside your community.
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