The 1040 Form is the standard IRS form used by individuals to file their annual income tax returns. It includes sections for reporting income, deductions, credits, and other tax obligations.
A comprehensive guide to the 1099 Form, used to report various types of income other than wages, salaries, and tips.
1099-MISC is a tax form used to report various types of miscellaneous income to the Internal Revenue Service (IRS), essential for individuals and businesses, particularly those involved in self-employment.
An overview of the 1099-NEC form used for reporting nonemployee compensation in the United States, introduced in 2020 to simplify and distinguish it from other income types.
501(c)(3) is a section of the U.S. Internal Revenue Code that defines tax-exempt entities, typically used by qualified charities. This article elaborates on its definition, requirements, examples, and related terms.
An overview of 501(c)(9) section of the Internal Revenue Code, where Voluntary Employees' Beneficiary Associations (VEBAs) qualify for tax-exempt status.
In-depth exploration of the 7-Pay Test, an IRS mechanism to determine if a life insurance policy qualifies as a Modified Endowment Contract (MEC).
A comprehensive look at Abusive Tax Shelters, including historical context, types, key events, explanations, diagrams, importance, applicability, examples, related terms, comparisons, facts, stories, quotes, expressions, jargon, FAQs, references, and summary.
An accountable plan is an IRS-compliant arrangement wherein employer reimbursements for expenses are excluded from an employee's income, provided they meet specific requirements.
ACRS, or Accelerated Cost Recovery System, was a method of depreciating property for tax purposes in the United States, utilized before MACRS. It introduced accelerated depreciation methods.
A detailed explanation of the Actual Expense Method for vehicle-related expense deductions, including definitions, examples, and frequently asked questions.
An overview of the Additional Medicare Tax, a 0.9% tax on high earners' wages above specific thresholds designed to support Medicare funding.
A comprehensive guide to the Adoption Tax Credit, including its definition, eligibility, calculations, and historical context.
An Advance Ruling is a preliminary ruling by tax authorities, such as the IRS, on the tax implications of a proposed transaction before it is executed. This mechanism provides taxpayers with clarity and certainty on the tax treatment of specific actions.
An amended return is a form filed to make corrections or adjustments for errors in a previously filed tax return. This entry explains the definition, types, special considerations, examples, historical context, applicability, comparisons, related terms, FAQs, and references.
The American Opportunity Credit is a tax credit for qualified education expenses paid for an eligible student for the first four years of higher education.
A comprehensive overview of the Alternative Minimum Taxable Income (AMTI), including its definition, calculation, and implications.
Understanding the Annual Exclusion Limit on Gifting Without Incurring Gift Tax
An Appeals Conference is a meeting with an IRS Appeals Officer to discuss and potentially resolve a taxpayer's disagreements.
Comprehensive guide on Business Use of Home, including criteria, benefits, considerations, tax deductions, and best practices for home-based businesses.
A comprehensive exploration of canceled debt, its implications, key events, and considerations.
Chief Counsel Advice (CCA) is issued by the IRS Office of Chief Counsel to provide written guidance and instructions on various tax-related matters.
The Clergy Housing Exclusion, also known as the parsonage allowance, refers to the tax exemption provided to members of the clergy for housing-related expenses.
Constructive Receipt is a tax principle requiring income to be taxed when it is made available to a taxpayer without restrictions.
An insightful guide on the Currently Not Collectible Status (CNC), a temporary phase where the IRS refrains from active collection efforts due to financial hardship experienced by the taxpayer.
A comprehensive guide on debt forgiveness income, its tax implications, types, key events, examples, and considerations. Understand how forgiven debt is treated as taxable income and its significance in personal finance and business.
Deficiency in taxation refers to the amount by which a taxpayer’s tax liability exceeds the amount of tax reported on their return. It signifies the additional tax debt that the IRS claims is owed, above what the taxpayer originally reported.
An in-depth look at Determination Letters, issued by the IRS to resolve specific issues, often related to the status of tax-exempt organizations.
A Dual-Status Alien is an individual who spends part of the year as a resident alien for tax purposes and part as a nonresident alien, subject to different tax rules and obligations.
E-file is the process of electronically transmitting tax returns to the IRS, offering a faster, more secure, and efficient method for taxpayers and tax professionals.
The distinct number issued by the IRS to EROs.
EFS (Electronic Filing System) at the IRS processes electronically filed tax returns, facilitating efficient, accurate, and secure tax submissions.
An Electronic Return Originator (ERO) is an authorized entity responsible for initiating the electronic submission of tax returns to the Internal Revenue Service (IRS), streamlining the filing process and improving accuracy.
An Employer Identification Number (EIN) is a unique identifier assigned by the IRS to businesses for tax reporting and identification purposes. It is essential for various legal and financial activities.
Enrolled Agents (EAs) are tax experts in the United States, recognized by the Treasury Department for representing taxpayers in dealings with the Internal Revenue Service (IRS).
Detailed Overview of Estimated Tax Payments, Including Definitions, Examples, and Requirements
An in-depth look at the Estimated Tax Penalty, a charge levied by tax authorities on individuals and businesses that fail to pay sufficient taxes throughout the year.
Payments made quarterly by individuals with substantial non-wage income to meet their tax liabilities.
An in-depth exploration of the criteria and processes used by tax authorities to select tax returns for examination or audit.
A detailed exploration of the primary mission or goal that qualifies a non-profit for tax-exempt status, including its historical context, types, key events, explanations, and more.
Detailed guide on the exemption application process for obtaining tax-exempt status, including historical context, types, key events, explanations, and more.
The Failure-to-Pay Penalty is a punitive financial charge imposed by tax authorities on individuals or entities that do not pay their tax liabilities by the designated due date.
A comprehensive guide to Federal Income Tax, explaining its definition, types, calculations, historical context, applicability, comparisons, related terms, FAQs, and more.
A Filer Identification Number (FIN) is a unique identification number used for certain tax filing circumstances, primarily in the U.S. context. Learn the definition, importance, and applications of FINs in this comprehensive guide.
Form 1040 Schedule D is used by U.S. taxpayers to report capital gains and losses from the sale or exchange of personal and investment property.
Form 1040-EZ was a simplified tax return form for individuals with straightforward tax situations. It was discontinued after the 2017 tax year.
An overview of Form 1040-SR, the simplified version of Form 1040 designed for seniors age 65 or older, including historical context, types, key elements, and more.
Form 1040A was a simplified version of the IRS Form 1040, designed for taxpayers with straightforward tax situations. It was discontinued after 2017.
Form 1040X is used for amending individual tax returns when corrections or changes are needed after the original Form 1040 has been filed.
An in-depth guide to Form 1099-C, a document issued by lenders to report the amount of canceled debt.
Form 1139, also known as the 'Corporate Application for Tentative Refund,' is used by corporations to apply for a quick refund of taxes due to a net operating loss (NOL) carryback or an unused general business credit carryback.
Detailed explanation of Form 706, the United States Estate (and Generation-Skipping Transfer) Tax Return, covering its purpose, requirements, filing guidelines, historical context, and more.
Form 8824 is an IRS form used to report like-kind exchanges of property, particular transactions that are tax-deferred under Internal Revenue Code Section 1031.
An in-depth guide on Form 8832, used by businesses to elect how they will be classified for federal tax purposes, including its importance, application, historical context, and detailed procedures.
Form 940 is the IRS form that employers use to report and pay their annual Federal Unemployment Tax (FUTA). This form plays a crucial role in the administration of unemployment benefits to workers.
Form 941 is used by employers in the United States to report wages paid to employees and the taxes withheld from their wages.
A comprehensive look at Form 990, the annual reporting requirement for 501(c)(3) organizations, including historical context, types, key events, detailed explanations, and more.
Form SS-4, issued by the IRS, is used by entities to apply for an Employer Identification Number (EIN), a vital tax identification number for businesses.
An essential tax form filled out by employees to determine the amount of federal income tax to be withheld from their paychecks.
Understand the fundamental differences between General Business Credits and Tax Deductions, how they impact tax liability and taxable income, their types, applicability, and more.
An explanation of the Green Card Test and its role in determining U.S. residency status for tax purposes.
An Individual Taxpayer Identification Number (ITIN) is issued by the IRS to individuals required to have a U.S. taxpayer identification number but who are not eligible to obtain a Social Security Number (SSN).
Injured Spouse Relief provides financial protection for a spouse whose share of a tax refund has been intercepted to pay the other spouse's past debts. This relief ensures that a spouse is not unjustly penalized for debts that are not their own.
Innocent Spouse Relief is a tax provision allowing a spouse to be relieved of responsibility for tax, interest, and penalties due to errors made by the other spouse.
An Installment Agreement is a payment plan with the Internal Revenue Service (IRS) that allows taxpayers to pay their outstanding tax debts in manageable monthly installments rather than in a lump sum.
An in-depth look at the Internal Revenue Code (IRC), the federal tax law of the USA that governs tax regulations for individuals and entities.
A detailed look into the Internal Revenue Service (IRS), its roles, responsibilities, history, and importance in the United States.
An in-depth examination of the Internal Revenue Service (IRS), its historical context, functions, and significance in the US taxation system.
Comprehensive coverage of the Internal Revenue Code, its historical context, key provisions, implications, and related financial and legal frameworks.
A comprehensive overview of IRC Section 409A, which regulates the treatment of deferred compensation in the U.S. tax code.
The IRS is the federal agency responsible for tax collection and enforcement of tax laws in the United States.
An in-depth review by the IRS of an individual's or organization's accounts and financial information to ensure that all information is accurately reported according to tax laws.
IRS e-file is the electronic system used by the Internal Revenue Service (IRS) for the digital submission of tax returns. Emphasizing speed and accuracy, the IRS e-file allows taxpayers to submit their returns electronically, reducing the need for paper-based filing and expediting the tax processing cycle.
IRS Form 1040 is the standard federal income tax form used by individuals to file their annual tax returns in the United States. This form details an individual's income, deductions, credits, and tax liability for the year.
IRS Form 2350 is used by U.S. citizens and resident aliens living outside the U.S. to request an extension for filing their tax return if they expect to qualify for special tax treatment.
IRS Form 940 is the tax form filed with the IRS by employers to report annual Federal Unemployment Tax Act (FUTA) tax owed.
IRS Form W-9 is a document used in the United States by individuals and entities to provide their Taxpayer Identification Number (TIN) to the requester for tax purposes.
A comprehensive guide to understanding IRS guidelines, their historical context, types, key events, detailed explanations, applicability, and more.
An IRS levy is a legal seizure of property to satisfy a tax debt. It represents one of the most aggressive collection mechanisms employed by the Internal Revenue Service (IRS) to collect taxes owed.
An IRS Lien is a legal claim imposed by the Internal Revenue Service on a property to secure payment of a tax debt. This article provides a comprehensive overview of IRS Liens, their historical context, types, key events, mathematical models, and practical examples.
Comprehensive guidelines provided by the IRS on the proper documentation and deduction of travel, entertainment, gift, and car expenses for business purposes.
Free resources provided by the U.S. Internal Revenue Service (IRS) that are informative but less comprehensive than CCH's expert analyses.
A comprehensive guide to IRS Regulations, the guidelines issued by the Internal Revenue Service (IRS) to implement and clarify the Internal Revenue Code (IRC).
IRS Section 179 allows businesses to deduct the full purchase price of qualifying assets in the year they are put into service, providing significant tax relief and encouraging investment in business equipment.
Comprehensive definition and explanation of IRS Section 368, which defines various types of corporate reorganizations under U.S. tax law, including the different types of reorganizations, examples, historical context, applicability, and related terms.
An IRS Tax Examiner reviews tax returns for accuracy, primarily dealing with less complex cases.
A comprehensive guide to the Individual Taxpayer Identification Number (ITIN), its purpose, application, and significance for U.S. taxpayers who are not eligible for a Social Security Number (SSN).
A comprehensive guide to understanding joint tax returns, a tax filing status used by married couples to combine their income and deductions on one tax return.
A comprehensive overview distinguishing key employees from executives, detailing historical context, specific criteria, and significance in various domains such as taxation, corporate structure, and governance.
A comprehensive explanation of the Modified Accelerated Cost Recovery System (MACRS), its historical context, types, key events, importance, examples, related terms, and FAQs.
MACRS, the Modified Accelerated Cost Recovery System, is the standard method used to depreciate property for tax purposes in the U.S. Introduced in 1986, it replaced ACRS to provide more precise depreciation schedules for business assets.
Material Participation refers to the active and substantial involvement in the operations of a business or trade. A taxpayer is considered to materially participate if they engage in the business activities on a regular, continuous, and substantial basis.
Mileage reimbursement is a standard rate set by the IRS to compensate for driving expenses. Employers use this rate or another agreed-upon rate to reimburse employees for business miles driven.
A comprehensive overview of the negligence penalty, which is imposed for failing to make a reasonable attempt to comply with tax laws.
A comprehensive guide to understanding the Net Investment Income Tax (NIIT), including its historical context, types, key events, detailed explanations, importance, applicability, examples, and more.
A comprehensive look into Non-Qualified Retirement Plans, their types, key events, significance, and more.
Comprehensive overview of IRS-required nondiscrimination tests for retirement plans, including ADP, ACP, and Top-Heavy tests.
A thorough exploration of the differences between nonprofits and qualified charities, including IRS tax-exempt status and eligibility criteria.
A Nonrefundable Credit is a type of tax credit that can reduce your tax liability to zero but cannot result in a refund.
Detailed exploration of Passive Activity Losses (PAL), including historical context, key events, types, explanations, mathematical models, examples, related terms, and more.
