When tax season rolls around, the flurry of forms can be overwhelming. But understanding the 1098 vs 1099 forms is crucial to navigating your finances.
In this blog, we’ll dissect these forms, highlighting their roles, differences, and how they impact your tax reporting.
So, buckle up as we demystify these IRS staples, ensuring you’re informed and ready for tax time.
If you drive a large truck, then you will have to learn about IRS tax form 2290. But what is IRS tax form 2290 exactly? This is a tax levied on all vehicles with a gross weight of over 55,000 pounds.
The IRS needs a current address to send you any refunds and correspondence. It can take up to 6 weeks to process a change of address. Most people use IRS Form 8822 to change their address, but there are a couple of other methods too.
If you move after you file your taxes, you’ll need to complete the IRS form. If you move before you file your taxes, your new tax returns will reflect the new address, but you must take other precautions too.
If you registered your business as a corporation, the IRS automatically makes you a C-corp. This has many tax disadvantages, making it hard for small businesses to remain profitable. Fortunately, businesses can file IRS Form 2553 and choose to be an S corporation instead.
The largest benefit of filing as an S-corp is the tax savings. The shareholders bear the burden of the corporation’s net income, paying taxes at their personal tax rate rather than the corporate tax rate, which is 21% plus the personal tax rate of any earnings.
If you are the victim of identity theft, then it is important to inform the IRS of your situation. This will prevent people from filing a false tax return with your name. With IRS Form 14039 – Identity Theft Affidavit, you can alert the IRS and protect yourself from tax identity theft.