The IRS Free Tax Filing 2023: How it Works and Who is Eligible

Tax filing is annual responsibility that comes with its fair share of stress and confusion. Fortunately, the Internal Revenue Service (IRS) has implemented ways to ease this process for taxpayers, one of them being the IRS Free Tax Filing option. With 2023 right around the corner, it’s essential to understand how this option can be beneficial for you.

The Free Tax Filing option from the IRS is aimed at providing simple and cost-free methods to taxpayers for filing their yearly tax returns. It is essentially an online tool where taxpayers can prepare and file their federal individual income tax returns without any cost. This service is made possible by a partnership between the IRS and the Free File Alliance, a coalition of leading tax preparation software companies.

For the year 2023, here’s what you need to know about the IRS free tax filing option:

Eligibility

Your eligibility for the Free Tax Filing option is primarily determined by your Adjusted Gross Income (AGI). For those with an AGI of $72,000 or less, free file software is available. On the other hand, if your AGI is more than $72,000, you can use Free File Fillable Forms, a more basic tool that is best for those with some tax preparation experience.

How It Works

Beginning in January 2023, taxpayers who are eligible can access the IRS free tax filing tools via the official IRS website. Using the ‘Help Me’ tool, taxpayers can find the best free file software for them by answering a few simple questions. Those who are self-filing can also use the ‘Free File Software Lookup Tool’ to find compatible software.

Controlled Foreign Corporation

One concept that can have significant tax implications is the ‘Controlled Foreign Corporation’. Now, what is a controlled foreign corporation definition? It refers to a corporate entity that is registered and conducts business in a different jurisdiction or country than the residency of the controlling owners. The U.S. shareholders of such a corporation, holding more than 50% of the total combined voting power of all classes of its stock or the total value of the stock, are subject to specific tax guidelines by the IRS.

Such corporations, if applicable to a taxpayer, could have specific filing requirements, and, in some cases, may affect a taxpayer’s eligibility for the Free File program.

Benefits of IRS Free Tax Filing

Perhaps the most significant benefit of the IRS free tax filing option is that it is free for eligible individuals. Notably, it also provides taxpayers with access to prominent tax filing software. Lastly, it comes with step-by-step instructions, making it very user-friendly even for those without extensive experience in tax filing.

With the 2023 tax filing season approaching, having a thorough understanding of the IRS Free Tax Filing option and considering intricate aspects such as the controlled foreign corporation definition can make life simpler and stress-free.

Remember that eligibility can vary and tax laws frequently change. It’s always a good idea to consult with a tax advisor or professional if you have specific questions or concerns about your tax filing process.

byAlma Abell

If you are a sole proprietor, you and your business are legally one and the same thing, rendering you personally liable for all its debts. Therefore, in the event that your business is declared bankrupt and there is not enough money in the business to pay the debts, creditors will be entitled to not only take the business assets, they can also take your personal assets. This rule also applies for general partners. If your small business is compelled to file for bankruptcy, it is essential that you seek assistance from someone having the requisite legal knowledge in business bankruptcy. Here are some important reasons for hiring a Small Business Bankruptcy Lawyer.

The attorney has undergone certification

A business bankruptcy attorney will have been duly by the American Board of Certification. A certified attorney is likely to have gone through rigorous testing and met objective standards while demonstrating exceptional knowledge in bankruptcy laws and creditors’ rights. Due to their vast knowledge in the prevailing state laws on bankruptcy, such attorneys are capable interpreting the law to the advantage of their clients.

Experience in bankruptcy proceedings

Choosing a business bankruptcy attorney will guarantee you that they already have experience in bankruptcy adjudications on a business level. You may gauge a particular attorney’s level of experience by getting references from their colleagues, as well as visiting their website and examining the various reviews made by their previous clients.

Help with tackling legal complexities

A small business bankruptcy attorney is capable of helping you with the following:

1. Analyzing your situation and explaining your rights and legal options.

2. Taking the necessary precautions aimed at preventing lawsuits, tax levies, garnishments, foreclosure and any other collection actions that may have been brought against you.

3. Providing legal advice that will help you in rebuilding your credit after bankruptcy.

If your business is on the verge of financial failure and you are considering filing for bankruptcy, it is essential that you hire a Small Business Bankruptcy Lawyer who is committed through certification to keeping up their proficiency through continual practice and education. Contact Hitchcock & Associates, P.C. They have competent bankruptcy lawyers with a winning track record. Visit Tomhitchcock.com for details on their services.

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