Tax.

Tax Articles

• What Is a Tax Lien?

  Instructions Tax Lien Step 1: A tax lien is a "hold," or a legal claim against property (real or personal) for unpaid property taxes. However, when you buy a tax lien, you do NOT take title to the property; you are buying the right to collect the money that was owed, which is typically the unpaid property taxes plus interest. Tax Deed Step 1: A close relation of the tax lien is... more.

• About Tax Fraud

  Instructions Function Step 1: Individuals generally commit tax fraud, also called tax evasion, for two main reasons: to pay a smaller amount of taxes to the IRS than what is actually owed or to pay no taxes at all. The fraud can also be perpetuated on a personal or corporate level, in the first case to keep a larger amount of income and in the second to inflate the worth or financial... more.

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  What is the Estate Tax?

  Instructions Features Step 1: An estate tax filing is required for estates with combined gross assets exceeding $3.5 million. The gross estate consists of everything owned or in which there is certain interest in at the date of death, including cash, stock and bonds, real estate, insurance, trusts, annuities and business interests. The tax is assessed at 45 percent for the value of... more.

• About Tax Evasion

  Instructions Definition of Income Tax Evastion Step 1: According to the U.S. government, the estimated loss in revenues in fiscal year 2007 due to income tax evasion was $345 billion. Income tax evasion is the deliberate attempt to avoid lawful tax payments by an individual or corporation. According to the ruling of the 1965 Supreme Court case Sansone v. United States, a conviction for... more.

• How to Calculate Property Tax

  Instructions Step 1: Find out the assessed value of your property, including both the land and the building itself. This amount reflects the estimated value of your property as determined by the official tax assessor and not how much you paid for it, how much you personally benefit financially from it or how much you estimate it is worth. Add the estimated values for the land and the... more.

• About Federal Income Tax Withholdings

  Instructions History Step 1: The citizens of the United States did not have federal income tax withheld from earnings at the beginning of the country. Starting in 1791, the money to run the government came from what was labeled "internal taxes" that were produced from the sale of commodities such as alcohol, slaves and tobacco products. It wasn't until 1862 that Federal Income Tax... more.

• How to Calculate State Sales Tax

  Instructions Things You’ll Need: Calculator List of tax percentages by city and state Step 1: Find out the total sales tax for a specific item by multiplying the cost of the item by the tax percentage. If you add a 0 before the point, you will get the exact total for the tax. For example, if the tax for your city is 4.457 percent, just multiply the cost of the item by .04457... more.

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  How Does State Sales Tax Work?

  Instructions What Is State Sales Tax? Step 1: Sales tax is a certain percentage of a merchandise purchase or service assessed in addition to the retail price. It's also known as "sales and use tax." State sales tax rates are set by the particular state's legislature, and can be modified for special events or situations. For instance, New York City has previously staged sales tax... more.

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  How Does Tax-Exemption Work?

  Instructions Introduction Step 1: Section 501(c) of the Internal Revenue Code provides full tax-exempt status to certain qualifying religious, educational and charitable organizations, as well as to those who conduct such other beneficial activities the government deems beneficial and would like to encourage. In all, some 28 types of organizations are exempted under the various rules of... more.

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  How to Calculate Sales Tax

  Hi I'm Joe Salazar with Expert Village. I'm going to show you how to calculate sales tax on the accounting calculator. Before we begin using the accounting calculator, we want to make sure its turned on. We want to make sure that the rounding button is set where we want it. This one is set to round up at .5 down .4 or less. The decimal is set at 2 places. We want to set the tax rate. Push the... more.

• How to File Income Tax Free

  Instructions Step 1: Log onto the IRS Free File Website. This service, offered by the federal government, allows individuals with an Adjusted Gross Income was less than a set amount ($54,000 in 2007) to file their taxes online for free. Click the "Free File: Frequently Asked Questions" link on the Free File Website to learn more about the system and eligibility requirements for this... more.

• How Does Tax Evasion Affect the Economy?

  Instructions About tax evasion Step 1: The term tax evasion connotes any method of illegally avoiding taxes one owes. This contrasts with tax avoidance, which is taking steps to reduce taxes that are within the law, such as tax deductions and other legal tax loopholes. Tax evasion can occur with almost any type of tax, and is commonly associated with income taxes, real estate taxes and... more.

• How to Calculate California State Income Tax

  Instructions Things You’ll Need: Calculator W-2 income report or equivalent Tax preparation professional (recommended) Understand California State Tax Brackets Step 1: Identify the three lowest California tax brackets. If you earn approximately $6,000 or less, your tax rate is 1 percent. Earnings ranging from approximately $6,000 to $14,000 are taxed at a 2-percent rate.... more.

• How to Calculate Income Tax Rate

  Instructions Step 1: Add up your total income. Income tax is figured off your adjusted gross income (AGI), which you arrive at by adding up all your pay, bonuses, investment gains and other income and then subtracting any deductions and credits you qualify for. Step 2: Choose your filing status. The income limits for each tax bracket depend on whether you are filing as single,... more.

• How to Avoid Income Tax Preparer Fraud

  Instructions Step 1: Provide your tax preparer with accurate information when preparing your income tax return. They are limited by what information you supply to them when performing calculations. Mistakes occur when your information is unclear or incomplete, forcing the preparer to submit information that can later be disputed once the actual numbers reported are reviewed. Step 2:... more.

• How to Claim a Trucking Sales Tax Exemption

  Instructions Step 1: Determine whether or not your vehicle can benefit from the trucking sales tax exemption. Visit your state's tax and finance department website. Review your state's qualifications. Step 2: Complete the trucking sales tax exemption form, also known as a Commercial Distribution Fee form (CDF) in some states. Forms are usually available as downloads from your tax... more.

• How to Buy Business Tax Software

  Instructions Step 1: Speak with friends and colleagues to see what they are using. Doing some research will help you select a business tax software program that best fits your needs. Step 2: Compare the top business tax software programs and their features, including price and user comments, at a site like Consumer Search (see Resources below). Look for software that will... more.

• How to Obtain Property Tax Exemption

  Instructions Step 1: Learn about the different types of property tax exemption. The three most common types of property tax exemption are full, partial and special exemptions. Full or partial property tax exemptions apply to properties where a specific portion, or the entirety, of the property is free from exemption, depending on its use and ownership. Step 2: Determine whether your... more.

• How Does Tax Fraud Affect an Economy?

  Instructions Tax Fraud Defined Step 1: Tax fraud is an attempt to illegally avoid paying taxes owed, most often through the misrepresentation of facts, such as earnings or expenditures. Tax fraud is often called tax evasion. It usually doesn't involve taking money that the government already has, but it prevents the government from collecting money which it is owed. Tax fraud may be... more.

• How to Claim the Saver's Tax Credit

  Instructions Step 1: Determine if you are eligible to receive the saver's tax credit. Currently, to be eligible you must be over 18, you can't be a student and you can't be a dependent on another person's tax return. In addition, current income must be under a certain amount, based on your tax filing status. You can find maximum income levels on the IRS website. Step 2: Obtain a copy... more.