Taxes

A:

As of 2014, the IRS can audit tax returns that have been filed within the past three years. However, if a substantial error is found, the agency can include additional years. In this case, an audit usually does not cover returns that date back further than the past six years.

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  • What Country Had a Beard Tax?

    Q: What Country Had a Beard Tax?

    A: Though the law is no longer in place, in the 1700s Russia had a federal tax on people with beards. The motivation for this strange revenue source stemmed from the country's then-ruler, Peter the Great, and his crusade against facial hair.
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  • How Is Tax Added to a Price?

    Q: How Is Tax Added to a Price?

    A: Tax is added to the price of a product by first determining the tax amount by multiplying the tax rate by the product price, and then adding the tax amount to the product price, according to the Basic-mathematics.com. Tax rates are determined by each state.
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  • Are Dental Implants Tax Deductible?

    Q: Are Dental Implants Tax Deductible?

    A: The Internal Revenue Service states that the amount paid for dental implants can be reported as a medical expense on Schedule A, Itemized Deductions. Not all taxpayers benefit from these expenses, as medical expenses have to exceed a percentage of income before they become deductible.
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  • How Do You Get an EIN Number?

    Q: How Do You Get an EIN Number?

    A: Contact the Internal Revenue Service to apply for an Employee Identification Number (EIN). Apply online, by mail, fax or phone. Business owners who apply over the phone should be prepared to answer the same questions included on the IRS Form SS-4, Application for an Employer Identification Number.
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  • What Is a Luxury Tax?

    Q: What Is a Luxury Tax?

    A: A luxury tax is essentially a tax placed on any goods or services the United States government as well as many state governments deem as non-essential. Such a tax is aimed at only those who are wealthy enough to afford luxury items. Despite the fact that many items formerly considered luxury goods no longer are viewed that way, the term persists.
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  • What Are Some Examples of Indirect Tax?

    Q: What Are Some Examples of Indirect Tax?

    A: One example of an indirect tax is sales tax, which is imposed entirely on the buyer rather than both on the seller and the buyer. Indirect taxes are taken from stakeholders that are generally not thought to be entirely responsible for the amount being taxed.
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  • When Was a Former IRS Commissioner Convicted of Tax Evasion?

    Q: When Was a Former IRS Commissioner Convicted of Tax Evasion?

    A: In 1952, former IRS commissioner Joseph Nunan got in trouble for tax evasion. In an odd twist, his problems were not due to corruption or hypocrisy but a simple misunderstanding over $2,000. He won a bet on a presidential election and forgot to claim the winnings on his tax return.
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  • Are Property Taxes Deductible?

    Q: Are Property Taxes Deductible?

    A: Typical real estate property taxes are deductible, as of 2014. Amounts paid for local and state property taxes can be included on itemized federal tax returns. The deduction is for the actual payment to the taxing authority, not the amounts paid in to escrow.
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  • Which States Have No Sales Tax?

    Q: Which States Have No Sales Tax?

    A: As of 2014, there are four U.S. states that do not impose a sales tax on consumers: Delaware, Montana, New Hampshire and Oregon. While Alaska does not impose a state sales tax, city governments do have the right to impose some sales tax there, meaning the average Alaskan retail shopper pays about 1.69 percent in sales tax.
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  • Why Are Taxes Important?

    Q: Why Are Taxes Important?

    A: The IRS indicates that taxes are vital to support the infrastructure that citizens rely on at the local, state and federal levels. Taxes support national defense programs, roadway construction, social service programs, public health and education. Without taxpayer support, many of these programs cannot exist.
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  • Why Does Maine Have a Blueberry Tax?

    Q: Why Does Maine Have a Blueberry Tax?

    A: Maine's blueberry tax is related to the berry's success as an export. This state alone produces as much as 99 percent of the wild blueberries consumed in America, and the tax impacts the growers, sellers and workers who support the blueberry industry.
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  • How Do You Find Out Property Taxes by Address?

    Q: How Do You Find Out Property Taxes by Address?

    A: SFGate Home Guides explains that since property taxes are public records, information about the taxes levied on a specific address are obtainable from the local government entity that maintains those records, which is typically the county assessor's office or recorder's office. Many localities make this information available online.
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  • What Is the Hotel Room Tax in California?

    Q: What Is the Hotel Room Tax in California?

    A: The hotel room tax in California is 12 percent of the bill charged by the hotel owner. Known as Transient Occupancy Tax, it is the responsibility of the hotel owner to pay the tax to the state of California.
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  • How Far Back Can the IRS Audit You?

    Q: How Far Back Can the IRS Audit You?

    A: As of 2014, the IRS can audit tax returns that have been filed within the past three years. However, if a substantial error is found, the agency can include additional years. In this case, an audit usually does not cover returns that date back further than the past six years.
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  • What Is the "cow Flatulence Tax"?

    Q: What Is the "cow Flatulence Tax"?

    A: In the United States, a cow flatulence tax does not exist, but some European nations have imposed taxes on cow owners. The main argument for a cow flatulence tax is that cows release methane, one of the greenhouse gases that causes climate change.
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  • How Long Should You Keep Tax Records?

    Q: How Long Should You Keep Tax Records?

    A: According to the Internal Revenue Service, how long people should keep their tax records depends on the type and purpose of the documentation, but IRS and Forbes magazine guidelines say that keeping records three to six years from the filing date or due date, whichever is later, covers many eventualities. The IRS recommends keeping tax records at least until the statue of limitations related to a certain record expires.
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  • Which States Have the Highest Income Taxes?

    Q: Which States Have the Highest Income Taxes?

    A: In addition to paying a federal income tax, most Americans have to pay an annual state income tax. Some states have higher rates than others, with California topping the list in 2014. Other factors such as local property tax rates may influence how expensive it is to live in a particular state.
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  • How Does One Check If One Owes IRS Back Taxes?

    Q: How Does One Check If One Owes IRS Back Taxes?

    A: People can check to see if they owe the Internal Revenue Service (IRS) taxes by calling the toll-free number for the IRS, which is (800) 829-1040. People can also visit a local IRS office.
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  • What Are Some Examples of Direct Tax?

    Q: What Are Some Examples of Direct Tax?

    A: Some examples of direct taxes include income taxes, taxes on assets and real property and personal property taxes. These are taxes that a person must pay directly to the entity collecting the tax. The taxpayer is not able to shift the burden of these taxes onto another individual or group.
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  • Can I Claim My Dog on My Taxes?

    Q: Can I Claim My Dog on My Taxes?

    A: People cannot claim their dogs as dependents on their federal income taxes. According to the Internal Revenue Service Publication 501, a dependent must have a valid tax identification number to be claimed.
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  • What Is the Purpose of an Audit?

    Q: What Is the Purpose of an Audit?

    A: An audit is a process that the Internal Revenue Service uses to check that the numbers of an account correspond with the tax return. While the IRS chooses to audit those with suspicious activity on their returns, there are also audits on a random sample of people and companies.
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