Internal Revenue Code (IRC) Section 61 "Debt Forgiveness" Explained
When a lender forgives or cancels a debt you owe, the IRS generally treats the canceled amount as taxable income. Internal Revenue Code Section 61(a) lists "income from discharge of indebtedness" as…
Internal Revenue Code (IRC) Section 6654 "Estimated Taxes" Explained
Internal Revenue Code Section 6654 imposes a penalty on individuals who don't pay enough tax during the year through withholding and estimated tax payments. If you're self-employed, have significant…
IRS 1040 Schedule 2 Form "Additional Taxes" Explained
Schedule 2 (Form 1040), Additional Taxes, reports taxes that don't fit on the main Form 1040, including self-employment tax, the alternative minimum tax, and the net investment income tax. If you're…
Think Tax Filing Season is Over? Why You May Need to File an Amended Return
Few people look forward to tax filing season. Unless you are an accountant who loves tax season, you probably dread this time of year, and you are thrilled when your return is in, and your refund is…
Owe Money to the IRS? Use These Money Saving Tips Before You File
Tax time is not fun, but reaching the end and finding you owe money is even worse. If the results of your tax preparation activities are less than optimal, you might think the only choice is to write…