When debts pile up, it can be easy to fall behind on tax payments. The IRS assesses a tax liability and the send a bill (Notice and Demand for Payment). When it doesn’t hear back from you in time, the Service files a public Notice of Federal Tax Lien.
One of the most famous tax fraud cases of all time sent Al Capone to prison. Those charges were mostly based on circumstantial evidence, because the famous Chicago gangster only endorsed one check and never had a bank account in his name.
The sharing economy has allowed more people to add side gigs. It’s also provides others enough income to leave traditional 9-to-5 positions. Understanding the tax implications, however, is crucial.
The Tax Cuts and Jobs Act created a new 20 percent deduction for qualified business income. There have been unanswered questions, however. Two big ones are: which businesses qualify and what counts as qualified business income.
Oftentimes, one member of the household handles all the money. For many couples, one person is usually in charge of filing tax returns and carrying out other financial obligations. Such exclusions can lead to problems later on, especially when that partner makes a mistake or manages the finances incorrectly.
Talking about money has always been tricky for couples. As a single adult, you're in charge of keeping track of where your money comes from and how it gets spent. When you get married, though, your finances and financial competence may be heavily scrutinized. Even married couples who keep separate bank accounts or pay for things separately need to discuss money management every now and then to ensure the family budget remains balanced – and to ensure taxes are filed and paid correctly.
Generally, the answer is between one and three years. In 2018, the IRS expected to receive 153 million individual tax returns. It takes time to go through all of them.