If you follow financial news, you may have the heard the phrase "tax-free bond" used quite often. Some news reports discuss that investors are purchasing tax-free bonds in droves to take advantage of rising interest rates. What is a tax-free bond? Why would it be beneficial for the interest rate on these bonds to rise? Are there any risks in purchasing tax-free bonds? Do I need assistance managing tax free bonds?
taxpayers are required to travel during the course of their employment. While the IRS allows individuals to write off business expenses related to travel, doing so can be a veritable minefield of tax issues, meaning you may need assistance from IRS Revenue Officers. For example, can you deduct the cost of gas if you're making a stop along the way to go sightseeing? What about engaging in pleasure while you're away on business? Is there any way to prevent being audited by the IRS for claiming travel expenses? To answer these and other questions, here's an introduction to help you learn how to write off business travel costs.
Around tax time, it's common to hear phrases such as "tax deduction" or "tax credit" being used interchangeably. While it can be easy to assume that tax deductions are tax credits are the same, they're actually different and they affect your tax liability in different ways. Which one is best to use on your tax return? Here's a primer on the difference between a tax deduction and a tax credit.
The IRS has instituted a special program called the Offshore Voluntary Disclosure Program (OVDP). Under the terms of this arrangement, taxpayers who have been hiding assets may be able to report these activities to the agency and avoid being criminally prosecuted by the IRS. However, there are several conditions for receiving amnesty under the OVDP and any taxpayer who is considering applying should do so only after investigating the entire program and its requirements.
If you operate a home-based business, you're probably familiar with the large number of home office expenses you can deduct. However, one of the most valuable deductions available to self-employed taxpayers may also pose the highest number of tax pitfalls: the home office deduction. Due to some IRS problems with tax audits in the past, some taxpayers who are legitimately entitled to claim this deduction refrain from doing so. To be clear, people who are qualified for the home office tax deduction should use it, but they must make sure that their records and use meet the IRS guidelines.
Tax day is a source of dread to many people, which is why so many taxpayers neglect to file their taxes until the very last minute. If you'd like to look at the lighter side of the tax code, here are five fun tax facts to take your mind off your potential tax bill.
Working for yourself can be a great way to earn a living. You may enjoy greater freedom about when and where you work or about the field in which you work. If you plan it carefully, you might even get to pick a career that you truly love. However, taxpayers who work for themselves can also fall into complicated tax scenarios, especially when they pay for costs that benefit them both personally and professionally. To avoid dealing with IRS tax audits, it's important to learn how to keep your personal and business taxes separate.
Home business owners are responsible for keeping up with several income tax forms each year. Depending on the type of business they operate, these entrepreneurs may have to file many forms and schedules along with their Form 1040. Since each form carries a separate set of instructions, the thought of learning how to complete them all can be overwhelming.
If you own and operate a retail business, you might consider hiring seasonal employees to help you get through the shopping rushes in the summer and around the holidays. The good thing about using seasonal help is that you can get the assistance of a full-time employee without having to make the long-term commitment.
The IRS takes a very strict stance toward taxpayers who fail to file their tax returns on time or pay their tax liability in a timely manner. Depending on the situation, a taxpayer who fails to file and pay promptly can end up owing both penalties and interest, in addition to the original amount due. Before you consider holding out on making your tax payment, it's good to find out about the potential penalties for late filing and payment. If you learn how to estimate tax penalties, you'll be able to guess how much you have to set aside to clear up your account.
