An additional charge imposed by the IRS for non-compliance with tax regulations
A comprehensive guide to understanding the tax period, its historical context, types, key events, explanations, and its relevance in taxation and accounting.
An extensive guide to Tax Planning, detailing its definition, types, importance, strategies, examples, and considerations in the context of reducing tax liability.
An in-depth look into tax preference items, which are specific deductions and credits that affect the calculation of the Alternative Minimum Tax (AMT).
A comprehensive look at tax rebates, including historical context, types, key events, detailed explanations, and more.
Comprehensive overview of the essential records needed for calculating and filing taxes including definitions, types, examples, and related terms.
A detailed exploration of tax returns, including their importance, historical context, types, key events, formulas, charts, applicability, examples, and related terms.
An exploration of tax shelters, including historical context, key types, events, explanations, models, charts, importance, applicability, examples, related terms, and much more.
Tax shelters legally help individuals and businesses reduce taxable income by utilizing various strategies, though misuse can result in tax evasion charges.
A comprehensive guide to understanding the role of a Tax Technician, their responsibilities, the importance of their work, and more.
A comprehensive guide to understanding Tax Withholding, the portion of an employee's wages withheld by the employer and sent directly to the government as partial payment of income tax.
Explore the intricate details of tax withholdings, including definitions, types, examples, historical context, and FAQs. Discover how tax withholdings impact your earnings and compliance.
Understanding the Concept of a Tax Year, Its Importance, and How It Affects Financial Planning and Compliance
An in-depth exploration of tax-deductible expenses and their impact on taxable income, key categories, historical context, importance, and applicability in different financial contexts.
A comprehensive guide to tax-exempt yields, including their types, calculations, benefits, and applications, with a focus on municipal bonds.
A comprehensive guide to understanding tax-free allowance, its significance, types, and implications in various contexts including personal finance, investments, and legal considerations.
A comprehensive overview of taxable accounts, including types, historical context, key events, explanations, formulas, charts, importance, applicability, examples, related terms, comparisons, facts, quotes, FAQs, and references.
A comprehensive examination of taxable benefits, their types, special considerations, historical context, applicability, and related terms.
A comprehensive insight into taxable events, their implications, and examples to understand what triggers tax liabilities.
Taxable income is the portion of an individual or entity's income that is subject to taxation. It differs from total income due to deductions, allowances, and exemptions.
An in-depth look at taxable supplies, the goods and services on which VAT must be charged. Understanding transactions subject to VAT and their implications.
Understanding Taxable Yield: Its Definition, Importance, Calculations, and Applications in Investments
The term 'Taxman' commonly refers to an Inspector of Taxes, an official responsible for ensuring individuals and businesses comply with tax laws and regulations.
Explore the distinct roles and responsibilities between a taxpayer and a tax filer, including key definitions, historical context, and practical examples.
Comprehensive overview of Technical Advice Memoranda (TAM), their historical context, types, key events, detailed explanations, significance, applications, examples, considerations, related terms, and much more.
The Technical and Miscellaneous Revenue Act of 1988 (TAMRA) introduced various tax-related changes, including the establishment of Modified Endowment Contract (MEC) rules.
An inheritance tax charge made every ten years on most forms of discretionary trust, calculated at 30% of the lifetime rate to compensate for the absence of generational inheritance-tax charges.
An in-depth exploration of Tentative Minimum Tax, its calculation using Alternative Minimum Taxable Income (AMTI), comparison with regular tax, and implications on additional tax liability.
Understanding Tentative Minimum Tax: Calculating initial tax obligations prior to comparison with regular tax liabilities.
A Tax-Free Savings Account (TFSA) is a Canadian savings vehicle that offers tax-free withdrawals and contributions. It is designed to help Canadians save money with the benefit of tax-free growth.
The minimum amount of cash wages paid to a household worker that triggers the obligation to withhold and remit Social Security and Medicare taxes.
A comprehensive article on timing differences, explaining its significance, historical context, key events, models, and related terms.
An in-depth exploration of the highest income tax bracket, including historical context, key events, calculations, importance, applicability, and related terms.
Treasury Regulations are the official interpretations of the Internal Revenue Code (IRC), providing guidance and clarifications on tax laws and compliance requirements.
An overview of the Tuition and Fees Deduction, its benefits, eligibility criteria, comparisons with other educational tax benefits, and practical examples.
An in-depth exploration of under-assessment, its implications, historical context, types, key events, formulas, charts, importance, examples, and related terms.
Underpayment occurs when an individual or entity pays less than the required amount of tax, potentially resulting in penalties.
An in-depth examination of the underpayment penalty, a fine imposed for not paying enough tax through withholding and estimated tax payments.
A comprehensive guide on the Unified Estate and Gift Tax, a federal system combining estate and gift taxes with a cumulative exemption limit.
An in-depth explanation of what unreimbursed employee expenses are, their implications, examples, and their treatment in tax calculations.
Unrelated Business Income Tax (UBIT) refers to the tax levied on income generated from activities unrelated to the exempt purposes of tax-exempt organizations.
Valuation allowance is an accounting method used to reduce deferred tax assets when it is unlikely that those assets will be realized.
An independent body that handles disputes about Council Tax bandings and other valuation issues.
An in-depth exploration of Value Added Tax, including its history, types, key events, formulas, examples, and more.
A comprehensive exploration of Venture Capital Trusts (VCTs), a UK government scheme that provides tax benefits for investing in high-risk small companies.
Voluntary disclosure involves taxpayers proactively informing tax authorities about inaccuracies or omissions in their tax filings before they are discovered through audits or investigations. This practice can mitigate penalties and foster compliance.
The term 'Wage Base Limit' refers to the maximum limit on earnings that are subject to Social Security tax. It is a crucial component in the computation of Social Security taxes in the United States.
The Wash-Sale Rule is an IRS regulation that prevents taxpayers from claiming a tax loss on the sale of a security if the same or a substantially identical security is purchased within 30 days before or after the sale.
A comprehensive overview of Writing-Down Allowance, its historical context, types, calculations, and importance in taxation and business.
Withholding allowances refer to the number of allowances claimed on Form W-4, determining the amount of tax withheld from an employee's paycheck. This article provides a comprehensive overview of withholding allowances, their importance, and their impact on tax withholding.
An in-depth exploration of the worldwide taxation system where residents are taxed on their global income, including historical context, key events, detailed explanations, and more.
The Work Opportunity Tax Credit (WOTC) is a federal tax credit aimed at incentivizing employers to hire individuals from groups who face significant barriers to employment. This article covers the historical context, categories, benefits, key events, detailed explanations, and related terms.
A 30-Day Letter is a formal notice from the IRS giving the taxpayer 30 days to appeal the proposed finding of the Revenue Agent.
A comprehensive guide to 501(c)(3) organizations, detailing their criteria, purpose, and legal obligations.
A comprehensive overview of a 90-Day Letter issued by the IRS after an audit indicating a proposed tax deficiency and the steps a taxpayer must take to contest it.
A detailed exploration of the Accumulated Earnings Tax, a 15% penalty surcharge on earnings retained in a corporation to avoid higher personal income taxes, including definitions, historical context, examples, and related terms.
A comprehensive look at the Accelerated Cost Recovery System (ACRS), including its principles, applications, historical development, and its modification into the Modified Accelerated Cost Recovery System (MACRS).
Adjusted Basis refers to the original cost or other basis of property, reduced by depreciation deductions and increased by capital expenditures, used to measure gains and losses for tax purposes.
Adjusted Gross Income (AGI) is a critical component in the computation of taxable income, factoring in various deductions and business expenses.
An in-depth look into Adjusted Tax Basis, its implications, calculations, and relevance in finance, accounting, and taxes.
Understanding the Alternative Minimum Tax (AMT), its application, history, and impact on corporate and high-income noncorporate taxpayers.
An amended tax return is filed to correct or supplement an original tax return. For corporations, Form 1120X is commonly used, while Form 1040X is typically employed by individuals.
Annual Gift Tax Exclusion allows donors to exclude a specified amount of their gifts from gift taxes each year. The exclusion amount has been $13,000 per donee for the years 2010 and 2011 and increases periodically to account for inflation.
A detailed overview of apportionment, from property expenses allocation to federal and state tax considerations, including examples and special considerations.
Detailed explanation of assessments, including tax liabilities and common expense shares. Explore types of assessments, their applications, and related terms.
A comprehensive guide to the concept of Assignment of Income, including its legal and tax implications, special considerations, and examples.
Detailed examination of 'At Risk' including its definition, types, historical context, examples, and applicability in investment scenarios.
Comprehensive coverage of At-Risk Rules in tax laws, limiting tax losses investors can claim from specific industries.
The AUTOGEN (Automated Generation of Federal Tax Deposit Coupon) form is a document mailed by the IRS to a taxpayer to accompany the employment tax deposit at any Federal Reserve Bank.
An automatic extension allows a taxpayer more time to file a tax return by filing the appropriate form with the IRS by the original due date, although tax payments based on the taxpayer's best estimate remain due on the original date.
An in-depth look at the principle of avoidance of tax, including legal strategies employed to minimize tax obligations as opposed to tax evasion.
Understanding the process and importance of Backup Withholding in ensuring federal income tax is paid on earnings when the recipient cannot be identified by a Social Security number.
A comprehensive guide on Bad-Debt Reserve, its application, historical context, and impact of the Tax Reform Act of 1986 on its usage.
Basis refers to the amount representing the taxpayer's cost in acquiring an asset, used for computing gain or loss on sale, exchange, and depreciation purposes.
A comprehensive guide to below-the-line deductions, also known as itemized deductions, which can reduce your taxable income when filing taxes.
Bracket Creep refers to the phenomenon where taxpayers are pushed into higher income tax brackets due to income rises aligned with inflation, increasing government revenue without changes in tax rates.
Understanding the limitations and exceptions of the business gift tax deduction, including allowable advertising items.
A comprehensive guide on how business meals fit into entertainment expenses and business meals, including definitions, considerations, and tax implications.
An in-depth explanation of Business Property, its tax implications, and various types. Understand how Business Property is categorized and managed under tax law.
Comprehensive explanation of the process by which deductions or credits of one taxable year that cannot be used to reduce tax liability in that year are applied against tax liability in earlier years.
Detailed explanation of the carryover process utilized to apply tax deductions and credits from one taxable year against tax liabilities in future years.
Learn about Carryover Basis in tax-deferred exchanges, including the adjusted tax basis of the property surrendered and its role in determining the tax basis of the property acquired.
Learn about Casualty Loss, which encompasses the loss of property due to fire, storm, shipwreck, theft, or other casualties and its implications for tax deductions.
Comprehensive coverage on Charitable Contribution Deduction, its implications, limitations, examples, and related tax considerations.
A nonrefundable tax credit allowed for a percentage of expenses incurred for household services or care of a child or other dependent, where the taxpayer maintains a household that includes one or more dependents who are under 13 years of age or mentally or physically incapacitated. The percentage of the credit varies inversely with the taxpayer's Adjusted Gross Income (AGI) between $15,000 and $43,000.
Circular E (IRS Publication 15) provides comprehensive instructions for employers regarding employment tax withholding amounts and procedures.
A comprehensive guide to the Claim for Refund process, criteria, and special considerations for taxpayers seeking refunds from the Internal Revenue Service.
A comprehensive overview of Closing Agreements, written agreements between taxpayers and the IRS that conclusively settle tax liabilities or specific issues affecting tax liabilities.
Comprehensive guide on consolidated taxable items that are eliminated from separate taxable income, computed on a consolidated basis, and combined with the aggregated separate taxable income, including examples, historical context, and related terms.
Comprehensive guide to understanding the concept of Contract Price in Installment Sales for tax purposes, including its definition, calculation, historical context, and significance.
A detailed explanation of controlled groups, covering their types, tax implications, and regulatory frameworks.
A correspondence audit is an examination of a tax return conducted largely by telephone or mail, usually involving substantiation or explanation of only a few items.
Understanding Cost Basis, its significance in financial calculations, and its implications for depreciation and capital gains or losses.
Cost Segregation is the process of separating property assets to accurately classify them for federal tax depreciation, allowing businesses to achieve significant tax savings through professional engineering and accounting assessments.
A Crown Loan is a financial device allowing demand loans to children or parents of lenders, designed initially by Chicago industrialist Harry Crown to confer tax benefits by falling under lower tax categories.
The Cumulative Bulletin (CB) is a semiannual hardbound compilation of all content from the Internal Revenue Bulletin (IRB), providing authoritative guidance on tax issues.
An in-depth exploration of death taxes, often referring to state inheritance taxes, and related concepts such as estate tax and unified estate and gift tax.
Income from forgiven debt that is typically subject to income tax unless exempted.
Understanding the Declaration of Estimated Tax, its requirements, applicability, and filing procedures for self-employed individuals and others without sufficient tax withholdings.
A detailed explanation of deductions allowed to taxpayers under the Internal Revenue Code as offsets against gross or adjusted gross income.
