The IRS is resuming automated balance due notices for tax years 2021 and earlier in 2024, a significant shift after the temporary suspension that began during the COVID-19 pandemic. This change is part of a broader effort to return to regular tax enforcement and notification practices. Here’s what you need to know about these notices and recent penalty relief updates for tax years 2020 and 2021.
The IRS has launched a Direct File Pilot Program for the 2023 tax year (2024 filing season), offering eligible taxpayers in select states a new way to file their federal income taxes directly with the IRS—for free. This initiative aims to simplify tax filing and provide an alternative to third-party software. Here's everything you need to know about the program.
The distinction between a business and a hobby can have significant tax implications. While a business conducted for profit allows taxpayers to deduct all ordinary and necessary expenses, a hobby comes with strict limitations on deductions. Here's a breakdown to help you understand the IRS guidelines and how to determine whether your activity qualifies as a business or hobby.
If you own a rental property, understanding depreciation is crucial to maximizing your tax benefits. Depreciation allows property owners to deduct the cost of income-producing property over time. Here's what rental property owners need to know about depreciation, repairs, improvements, and the impact of converting personal property to rental use.
Tax refunds often feel like a financial windfall, but they’re simply a return of what you’ve already paid to the IRS. A refund results from either tax withheld from income, estimated tax payments, or refundable tax credits. Let’s break down these components and how they contribute to your tax refund.
When it comes to settling your tax bill with the IRS, there are several convenient payment options and plans available to suit different financial situations. Whether you can pay immediately or need a long-term solution, the IRS provides flexible methods to ensure you stay compliant.
Tax-related identity theft is a growing concern, with criminals using stolen Social Security Numbers (SSNs) and Employer Identification Numbers (EINs) to file fraudulent tax returns and claim refunds. Understanding how to detect and respond to identity theft is critical to safeguarding your personal and financial information.
The Internal Revenue Service (IRS) has announced that the 2025 tax filing season will commence on January 27, 2025.
