Some people in Georgia might receive a notice from the IRS about verifying a taxpayer's identity. According to one expert, these letters most often indicate that a taxpayer has been the victim of identity theft.
The truth about common tax myths
Georgia residents may have firsthand experience with how complicated the federal tax code can be. Such confusion has led to the creation of generalizations or myths that some may have come to take for granted. While it is true that the IRS generally audits those who make more than $1 million per year, those who make under $25,000 and claim the earned income tax credit may be at risk for being audited.
How to pay taxes on time
In 2015, 10 million people were hit with failure to pay estimated tax penalties in Georgia and across the nation. This was an increase from 7.2 million in 2010. While penalties differ for each taxpayer, it could add hundreds of dollars to a tax bill. Those who derive income both from an employer and side gigs may benefit by increasing their withholding or making payments throughout the year.
Remember that you have rights if you are facing an audit
When you prepare your tax return, you should be aware of key tax issues that might raise red flags with the Internal Revenue Service and lead to an examination of your business practices.
Is it true that tax debt can be discharged in bankruptcy?
Chapter 7 of the bankruptcy code offers full discharge for your allowable debts. In Chapter 13, you can repay some debts through a court-approved payment plan, and the remaining obligations will be eligible for discharge. Chapters 7 and 13 manage tax debt in the same way.
Why 401(k) contribution increases benefit workers
In 2018, Georgia employees and others in America will be able to contribute up to $18,500 into their 401(k) accounts. This is an increase of $500 from 2017 limits. Although an extra $500 per year may not seem like much, it could result in an extra $70,000 in a retirement account for a 30-year-old who contributes the maximum amount. A 40-year-old who contributes the maximum amount would have an extra $34,712.
