Inheritance tax insurance is a UK-based policy that funds inheritance tax on an estate after death. It is often a whole life policy and requires careful calculation of the value needed to pay the estate tax. Estate planning techniques and trusts can also be used to protect heirs. Inheritance tax insurance is an insurance policy […]
Estate planning often involves protecting assets from taxes, such as the federal estate tax in the US. A trust can help avoid inheritance taxes, and an AB trust allows spouses to combine exemptions and reduce tax liability. State-level inheritance taxes vary, but some can be paid through a will. When people begin the estate planning […]
Property tax law allows governments to tax property, typically real estate, to fund public projects. Each jurisdiction has its own tax code, and property taxes are calculated based on the property’s value, not the owner. Real estate tax law often involves challenging tax assessments. Property tax law is the set of statutes and regulations that […]
A tax agent can refer to a government official who ensures citizens and businesses pay their taxes, or a professional who prepares taxes for a fee. Tax agents must be certified and can include CPAs and tax attorneys. They help clients save on taxes and prepare and submit tax returns. The term “tax agent” can […]
Becoming an income tax preparer requires strong math and interpersonal skills, and can be achieved through free or low-cost courses offered by tax companies and schools. Volunteering and preparing personal taxes can also provide experience. Obtaining a state license and federal tax identification number may be necessary for starting a business. Each year, individuals and […]
To file a tax extension online, check if the tax agency allows it. You can use online forms, tax software or download and mail an extension form. Provide basic information and pay estimated taxes. Pay due taxes by the regular deadline to avoid penalties and interest. The steps you take to file a tax extension […]
Tax jurisdictions are cities, states, or countries that collect taxes based on residency, income, or other patterns. They have different ways of calculating taxes, and some are considered tax havens. Federal, state, and city governments can charge taxes, as well as school and water districts. Counties can also levy sales taxes on transactions. Sellers are […]
Retained earnings tax is an additional tax paid by corporations that choose to retain earnings instead of paying dividends, calculated in addition to regular corporate income tax. The tax encourages dividends and minimizes tax loss for the government. Retained earnings tax is an additional business tax paid by corporations that choose to retain retained earnings […]
Tax evasion can be reported to the IRS through a form, letter, or phone call. Details about the party involved, amount of money, and years evaded should be included. Anonymous reporting is allowed and physical evidence can be helpful. Form 3949-A can be used or a letter can be written with similar information. A person […]
Tax abatement is a temporary reduction or exemption of taxes for individuals, small businesses, or other taxed parties. It can target homeowners or businesses and is used by the government to incentivize behavior changes. Tax abatement comes in various forms and can be controversial. Tax abatement refers to many different programs that will temporarily reduce […]
Income tax preparation courses are available for various reasons, including seasonal tax jobs, becoming a tax preparer, or learning how to prepare personal taxes. Courses range from basic to advanced and are offered at continuing education facilities, community colleges, and online. Individuals take income tax preparation courses for a variety of reasons, including preparing for […]
A tax return is a document filed with state or federal authorities that declares taxpayers’ responsibility to pay taxes, based on their annual income. It can result in the taxpayer being charged too much or too little, and deductions can be confusing. Tax returns must be filed annually and can be done individually or on […]
Governments collect taxes, including income tax, which is calculated based on an individual’s earnings and is progressive. The US introduced income tax in 1914 to make the wealthy pay their fair share. Payroll deductions are made for taxes, Social Security, insurance, and union dues. Tax season runs from January to April, and taxpayers can deduct […]
An estate tax exemption is required in some US states as proof that estate taxes have been paid. It may be required depending on state laws and the location of the deceased’s assets. The waiver form includes personal and account information and must be submitted for processing before frozen funds can be released. Once approved, […]
Tax court is a limited jurisdiction court that deals with tax matters. In the US, federal and state taxes are levied, and non-payment can result in fines, interest, and even jail time. The IRS enforces tax laws and can take individuals to court, where judges can garnish wages or seize assets. Tax courts exist in […]
To negotiate payments with the IRS, file on time, check for errors, and propose a repayment plan with a realistic monthly payment. Notify the IRS in writing if you cannot make a payment and evaluate your withholding status to avoid future tax debt. Some people are unpleasantly surprised to discover that they owe more income […]
R&D tax credits provide tax relief for research and development costs, and may allow for deductions or grants. They are often temporary and aim to motivate companies to invest in innovation. Eligible projects must extend knowledge or skills in science or technology, and costs may include wages, materials, and indirect items. The amount a business […]
Governments impose a retained earnings tax on corporations that accumulate savings above a certain threshold, to make up for income lost through the non-distribution of dividends. This tax is aimed at combating the practice of hoarding cash to avoid double taxation. A retained earnings tax is an income tax assessment on corporate savings that exceed […]
Tax capital investments can include federal tax liens on property and infrastructure projects, as well as state tax liens on delinquent property. Investors can purchase tax liens for a portion or full amount of outstanding taxes and receive a return once the delinquent taxpayer pays in full. Tax capital investments have a few different interpretations, […]
A corporate tax return reports a company’s income gains or losses during a tax year. Corporations file tax returns with the state and federal government, and the deadline is set by the government. The information used to complete a corporate tax return can be found on a company’s Balance Sheet and Profit and Loss Report. […]
