What are the benefits and drawbacks of exact withholding? Q.What are the benefits and drawbacks of exact withholding? A.An exact-withholding system could ease the burden of tax compliance on many individuals, especially if it were accompanied by substantial simplifications to the tax code. Potential drawbacks include a heavier administrative burden for those charged with withholding income tax and for government collection agencies. Read more about What are the benefits and drawbacks of exact withholding?
What is Direct File? Q.What is Direct File? A.Like the Free File program, a direct file program would provide taxpayers with access to free software that would prepare and electronically submit their returns to the IRS. But, unlike the Free File program that operates through private companies, a direct file program would be developed and run by the IRS. Read more about What is Direct File?
How did the major COVID-19 pandemic relief bills affect taxes? Q.How did the major COVID-19 pandemic relief bills affect taxes? A.The onset of the COVID-19 global pandemic in early 2020 prompted a sharp and severe global recession, as health authorities urged individuals to isolate as much as possible to slow the spread of the disease. To help keep businesses afloat during this period and aid people who lost work as layoffs surged, Congress adopted a series of measures, including tax cuts, to mitigate the economic damage and promote a faster recovery. Read more about How did the major COVID-19 pandemic relief bills affect taxes?