An IRS audit reconsideration is a review that the IRS grants to taxpayers who have already completed an audit. The reconsideration is basically a re-examination of the case to look for errors that may have been committed while assessing the individual's tax liability. There are only a few situations in which the IRS will consider re-examining the results of a completed audit. As a result, it's important for taxpayers to know which circumstances qualify for reconsideration and how they can begin the process of requesting the review.
Receiving a written notice from the IRS may trigger feelings of fear or concern. Receiving an IRS audit letter in particular can be a scary experience. What's in an IRS audit letter? Can you do anything about an impending audit? What should you do if you disagree with the findings in an audit letter?
If you find out that you have been selected for an IRS examination, you may easily become nervous about what to expect. An IRS examination, commonly referred to as an audit, is a detailed review of your financial situation. In most cases, the agency will only discuss specific matters that relate to a certain tax year. Do you know what exactly happens at an IRS examination? Do you need to do anything to prepare for it?
The Affordable Care Act (ACA), which is commonly referred to as "Obamacare", allows U.S. citizens to purchase health insurance at a reduced rate. Those who do not buy health insurance by the deadline are subject to a tax penalty. For those who cannot afford the insurance, though, there is an Affordable Care Act hardship exemption that allows them to escape liability for the tax penalty.
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f you're dealing with financial uncertainty, you may be tempted to dip into your 401k to boost your bank account. If you don't meet the IRS age requirements, though, you'll likely face tax penalties for early 401k withdrawal. What are these penalties? Is there any way you can avoid paying a 401k withdrawal penalty?
The words "IRS audit" may be downright frightening to the average taxpayer. News reports of taxpayers who've had to pay back thousands or even millions of tax dollars doesn't do much to ease that fear. Since taxpayers are often afraid of audits, they may avoid learning the truth about the IRS audit process. Here are a few common audit misconceptions that can ensnare taxpayers.
As the filing deadline draws closer, many taxpayers realize that they won't be able to submit their returns on time. These individuals often turn to filing a tax extension to have more time to prepare their forms. Is this a wise thing to do? Does filing a tax extension make it more likely that the IRS will audit you?
When a wealthy celebrity dies, news reports might mention the estate tax that is levied against the assets afterward. The estate tax is often nicknamed the "death tax" because it only comes into force following a death, but it's not actually a tax on death. What is the estate tax? Who is required to pay it? Does the IRS offer any estate tax deductions?
Are you expecting a large tax refund this year? Congratulations, you'll be receiving tax-free money that you can use however you like! If you want to be smart with your taxes and finances, though, you'll need to learn how to invest your tax refund. While using the funds for a luxury item such as a television or a new wardrobe might be tempting, using your tax refund as an investment will pay off in the long run.
The capital gains tax is an income tax levied on profits from sales of capital assets. However, if you're subject to the capital gains tax, your effective tax rate can be as low as zero or as high as 20 percent. What is the capital gains tax? Which assets are subject to the tax? How is the tax rate calculated? Here's a primer on what the capital gains tax involves.
