Tax Laws

A “consumption tax” is a tax charged on goods and services whereas income tax is charged on income. Today, consumption tax sounds foreign, but before the passage of the 16th Amendment to the Constitution, taxes were levied primarily on consumption. It was only in 1913 that Congress was allowed to charge tax on income. The…

Are taxes charged on income or consumption better? That is exactly what some Republican governors are debating. Cutting personal and corporate taxes and increasing sales tax is currently being contemplated. Making their states attractive to investors has always been the strategy to increase jobs by states, and increasing of sales tax will help with that.Taxing…

That is a question that does not have an answer, till now. There are thousands of nonprofit firms with a tax-exempt status that are making billions of dollars and not paying a penny to the state. With a gaping tax deficit and talks of increasing taxes, the government is losing millions in taxes, thanks to…

Nonprofits that enjoy tax-exemption are earning millions of dollars. That means that the country is losing millions of dollars in taxes. There are many companies that have tax-exempt status when they are not a charity, a school, a hospital, a religious organization etc. and are enjoying millions of dollars of tax-free earnings.When talks of the…

When taxpayers get into tax debt, they need to be looking for ways to get out of it because the IRS can anytime begin collection action. The IRS first sends notices regarding unpaid taxes. If taxpayers ignore or refuse to pay their tax debt after receiving notices from the IRS regarding debt payment, the IRS…

Many times taxpayers avoid paying of back taxes due to one reason or the other. In such cases of unpaid taxes, the IRS sends notices to taxpayers under tax debt informing them about the amount of taxes that remain to be paid.After sending of notices if taxpayers neglect or avoid fulfilling their tax debt, they…

If you are a new landlord and have put your property on rent, you will be required to pay additional taxes to the government. That is because the IRS considers the rent you are getting as income, and income from any source is taxable under the law.Even though you will be paying additional taxes on…

If you are a new landlord who has given out property on rental, you will need to pay additional taxes to the government. The IRS sees the rental you are getting from the property as income on which taxes are charged. To save taxes on rental property, you will need to plan your taxes.To reduce…

Those taxpayers who have decided to rent out their property and not sell it need to pay additional taxes to the IRS. According to the IRS, the profit you make from giving your property on rent is taxable. As you are the landlord, you will need to pay taxes on the property and also on…

There are many tax credits that small business owners can use, but they need to find the ones that they can use depending on the nature of their business, the number of employees and other particulars that affect their profits. The three tax credits that many small business owners overlook and that can be used…