Move over, Robin Hood – the real tax redistributors in town are wearing badges, not tights. The IRS announced today that it’s clawed back a whopping $520 million from millionaires who were shortchanging Uncle Sam. That’s right, folks, 1,600 members of the one-percent club finally settled their tab, proving that even seven-figure salaries can’t buy immunity from the taxman’s gaze. Read more about how the IRS clamps down on wealthy scofflaws.
Newfound Muscle
This windfall comes after the 2022 upgrade to the IRS’s enforcement arsenal. Flush with new funding and a mandate to crack down on high-income scofflaws, the agency has been diligently combing through the tax returns of the 1%, separating the honest (or at least, very good at hiding) from the Houdinis of the tax code.
Tax Evasion
This crackdown extends beyond just individuals, too. The IRS is also setting its sights on complex partnerships and large corporations that have mastered the art of turning tax codes into Swiss cheese. Think loopholes so big a T-Rex could waltz through them. But even these financial contortionists are finding it harder to escape the taxman’s gaze.
Fairness
Well, hopefully it means a fairer playing field. Knowing that the fat cats are paying their share might ease the sting of your own tax bill. And who knows, maybe one day, with a well-funded and effective IRS, we’ll all be able to afford that private jet (or at least a decent vacation). Until then, let’s raise a glass (of something affordable) to the IRS, the unlikely Robin Hoods in suits and ties.
Millions of Americans are awaiting word from the Internal Revenue Service (IRS): They can now put off filing taxes until mid-May.
With millions of Americans unable to file their taxes due to the Covid-19 pandemic, the Internal Revenue Service (IRS) has announced that taxpayers can now hold off on filing until mid-May. The decision gives taxpayers several extra weeks to get tax documents in order and prepare for what could be a complicated filing process.
IRS Tells Millions of Americans to Put Off Filing Taxes
In 2020, due to the Covid-19 pandemic, the IRS extended the tax filing deadline from April 15 to July 15, giving taxpayers extra time to file their taxes without incurring late penalties or interest. The deadline for some tax-related actions, such as making contributions to an IRA, was also extended. These extensions applied to individual taxpayers, regardless of location. It’s always best to check the IRS’s official website for the most up-to-date information regarding tax filing deadlines and related matters.
Here’s a breakdown of what this means for American taxpayers.
The IRS’s decision to delay the tax filing deadline will give taxpayers extra time to gather any missing documents and make sure their taxes are prepared correctly. Additionally, it provides more time for those who are expecting a refund to get their money back in a timely manner. On the other hand, taxpayers who owe money will have additional time before they must submit their tax payment – though interest may still be due on overdue payments.
What It Means for Taxpayers?
For taxpayers who are expecting a refund, the delay may mean extra time to get their money back. But for taxpayers who owe taxes, the delay may mean additional interest on late payments. It is important to note that tax returns that are not submitted by mid-May will incur penalties and fees. Therefore, it is recommended that taxpayers begin gathering any necessary documents as soon as possible in order to submit their taxes before the due date.
When Should You File Your Taxes?
The Internal Revenue Service (IRS) has announced that tax filing deadlines have been extended until May 17, 2023. This delay gives taxpayers an extra month to file their taxes and allows them more time to prepare their documents. It is important for taxpayers to keep track of the filing deadline in order to avoid any penalties or fees associated with late payments. To get started on preparing your taxes, be sure to gather all necessary documents such as W-2 forms and 1099s.
What Types of Tax Returns Are Affected by the Extension?
The tax extension applies to both individual and business taxpayers. This includes individuals filing Form 1040, corporations and S corporations filing Form 1120, partnerships filing Form 1065, and trusts and trusts filing Form 1041. Taxpayers who have filed returns for tax-exempt organizations and those who file employment tax returns are also affected. Taxpayers should be sure to check the IRS website for the latest forms in order to comply with the extended deadlines.
Will Interest and Penalties Still Apply During the Extension Period?
The IRS will continue to charge interest on any unpaid taxes and there may be penalties levied for late filings. However, some taxpayers may qualify for relief from these types of penalties if they have reasonable cause or meet specific hardship criteria. Taxpayers should contact their tax preparer or the IRS directly to discuss what options may be available.
Turbotax Deluxe vs Premier: Turbotax Deluxe is the best option for people who are not self-employed or have rental properties. It’s also a good option if you’re not eligible for the free version.
Turbotax Deluxe vs Premier
TurboTax Free Edition
Turbotax free edition is designed to allow low income families and individuals with qualifying incomes to file their taxes for free.
The qualifications for the Turbotax free edition are:
When someone is paid as an independent contractor, they are not considered an employee. This means that they are not entitled to benefits like healthcare or retirement. The person who hires them pays their taxes instead of the government.
This type of income is called 1099 income because the IRS form for it is 1099-MISC and it’s a miscellaneous income. It’s also called contract work, and you can receive this type of payment from any number of sources including clients, customers, or employers.
The 1099 form is used to report all the money received by a business for services rendered in which the client does not withhold taxes from the payer’s wages or other compensation.
TurboTax Premier is the best option if you’re self-employed with 1099 income, have rental property income/expenses, or are eligible for the free version of TurboTax Freedom Edition.
TurboTax Comparison
TurboTax Deluxe is a software that is designed to make filing taxes easier. It includes the most popular tax forms and provides the basic features for simple tax returns. TurboTax Premier, on the other hand, includes all the features of TurboTax Deluxe and also offers more complex features like audit assistance, cost of home ownership and investment income.
Audit Assistance
Audit assistance is a service that helps with the process of auditing. This is usually done by an external professional, but it can also be done by someone inside the company who has been trained to do so. Audit assistance can be provided in many different ways:
Internal audit assistance: this is when the company hires someone internally to provide audit assistance. This person would work both on their own as well as in conjunction with other employees to complete audits. They might also be tasked with training new employees on how to do audits.
External audit assistance: this is when a company hires an external auditor to help them with their audits and ensure that they are being completed correctly.
Audit consulting: this is when a company hires an outside consultant who helps them find solutions for any problems they are having related to their auditing process, such as how often they should be doing them or how best to go about doing them.
Pricing
TurboTax Premier has a higher price than TurboTax Deluxe because it offers more advanced features which are not necessary for everyone. The Premier version has some additional features and benefits that make it worth the price tag. If you need to deduct investment expenses or get a refund on past-year over-payments, then you should choose this version instead of Deluxe.
Past Year Over-Payments
When a taxpayer overpays their taxes in one year, they are entitled to get that money back in the form of a refund.
Many taxpayers think of past-year over-payments as refunds, but they are not. When a taxpayer overpays their taxes in one year, they are entitled to get that money back in the form of a refund.
As with any online program, Turbo Tax 2013 has had its share of people trying to fraud the users by stealing sensitive login information. The reason that this happens is because people are not careful when they log into the system, or they do not ensure that their connection is safe. Here’s many ways to avoid Fraud With Taxes:
Criminals have systematically started to target Turbo Tax simply because it is a site where many people are now going to do their taxes without the help of an expensive tax refund business.
The Internal Revenue Service has reported major losses in its income since this type of fraud has been going on, but they are not the only ones. The customer is the one who also suffers when they are not receiving their full tax income. Sophisticated programs being used by criminals on the Internet are to blame for this, but also the method of encryption used on the site.
Photo by HM Revenue & Customs Fraud With Taxes
Keeping your password safe can help you to be sure that you will not have to worry about hacking in that regard, as is any type of malware protection on your computer. Intuit does offer some state-of-the-art protection for this, but it is also your duty to ensure that fraudulence does not happen on your part. This is all about the safety of you and your tax refund, after all. Always keep your Turbotax login tax return 2014 information safe.
You may be surprised at how many people wait until close to the tax deadline to finish and file their taxes. This may have nothing to do with pure procrastination and everything to do with feeling overwhelmed about the process.
Many people may be focused on the prospect of dealing with penalties for improper filing, but following the good advice from TurboTax can eliminate these types of fears.
File Electronically
Electronic filing is safe and straightforward with TurboTax, and your return will be received much faster than if you mail a paper income tax return. The Internal Revenue Service will inform you within 48 hours whether or not your income tax submission has been accepted.
No Income Tax! (Photo credit: sjrankin)
You can receive a tax refund by a traditional paper check, but selecting direct deposit is quicker and safer as well. Electronic filing and direct deposit eliminates the potential for lost documents, lost checks, and longer waiting due to document delivery time. TurboTax even has free Federal tax filing options for qualifying income tax filers.
File Now, Pay Later
You should file your taxes as soon as possible even if you end up owing the government. The IRS will let you submit your income taxes and set up a payment for a later date, and you may set up an automatic withdrawal. You can pay through your bank account, debit card, or credit card without penalty as long as you make your payment by the April 15th deadline.
Americans might be willing to wait longer for their tax refunds (60% responded) and would like to see stronger requirements for tax preparers to help reduce tax fraud. H&R Block ran a survey of tax payers this year related to tax fraud and ways to reduce it. 70% of those responding to the survey wouldn’t mind answering additional questions on their returns if it would help out. Here’s what they found about Eliminating Tax Fraud.
H&R Block Business Center (Photo credit: EVRT Studio)
An H&R Block executive explained that tax preparers do not have any requirements or licensing in 48 or the 50 states. He made comparisons to hair barbers who need to be licensed everywhere. But he doesn’t stand with the courts which decided against making tax professionals get training and pass tests before they could work in the field.
Those against preparer requirements of testing and training think the certification should be optional so that it benefits young tax preparers without placing a new burden on seasoned professionals that are already trusted in the community. The lawyers fighting the IRS in court also argued that certification would benefit the big players in the field that could absorb the costs while putting smaller operators out of business. Return to our site for additional information on Eliminating Tax Fraud.
