| Levies |
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| If a taxpayer fails to pay his or her taxes or does not make arrangements to settle the debt with the Internal Revenue Service, the IRS is authorized to seize and sell real or personal property in which the taxpayer has an interest. This authority extends to property in the hands of a third party. More... |
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| Slavery Reparation Tax Refund Scam |
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| When the IRS receives a reparations claim related to slavery, it notifies the taxpayer that the claim has no basis in law. It offers the taxpayer the opportunity to rescind the frivolous claim or to file a corrected tax return without the imposition of a penalty. However, if the taxpayer insists on pursuing the reparations claim, he or she could face a penalty of up to $500. More... |
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| Lottery and Gambling |
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| All winnings, including cash and the fair market value of noncash prizes such as cars, houses, and vacations, must be included in a taxpayer's income. Gambling winnings are fully taxable. The taxpayer is permitted to deduct gambling losses for the year only if he choses to itemize deductions, and then only to the extent of winnings. More... |
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| Mortgage Interest Credit |
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| Low-income taxpayers who purchase a residence may be entitled to a federal income tax credit for part of their home mortgage interest paid each year. The credit is a direct dollar for dollar reduction of taxes owed. Generally, a qualifying principal residence may not cost more than 90 percent of the average area purchase price, but it can go as high as 110 percent in some targeted areas. More... |
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| Types of Section 401k Plans |
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| There are three basic types of 401(k) retirement plans that an employer may choose from: a traditional 401(k) plan, a safe harbor 401(k) plan, or a SIMPLE 401(k) plan. More... |
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