What Is “Additional Medicare Tax”?
05/29/2026
The Additional Medicare Tax is a 0.9% surtax that applies to individuals whose earned income exceeds specific legal thresholds. Unlike the standard Medicare tax, this tax is paid only by the employee or self-employed individual; there is no employer-matching contribution. 1. Meaning of “Additional Medicare Tax” In plain English, the Additional Medicare Tax is a
What Is a “1099 contractor”?
05/29/2026
A 1099 contractor is a self-employed professional or business entity hired to perform specific tasks or projects for a client. Unlike traditional employees, they are not on the company’s permanent payroll, and the hiring business does not withhold taxes from their pay. 1. Meaning of “1099 contractor” In plain English, a 1099 contractor is their
Stuck in the ID.me Selfie Loop for IRS Verification? How to Reach a Video Chat Agent Step by Step
05/29/2026
A taxpayer resolves a verification issue by switching from the selfie tool to a live video call during IRS verification. To reach an ID.me video chat agent for IRS verification, sign in to your IRS portal, select the ID.me option, and choose Video Call when prompted. If you are stuck in a selfie loop, continue
What Is “Wage garnishment”?
05/28/2026
What Is Wage Garnishment? Wage garnishment is a legal process where the IRS orders your employer to withhold a specific portion of your earnings to pay off an overdue tax debt. This money is sent directly to the government before you receive your paycheck, continuing until the debt is paid in full or you make
What Is “Underpayment penalty”?
05/28/2026
What Is “Underpayment penalty”? An underpayment penalty is a fee the IRS charges if you do not pay enough of your total tax liability throughout the year. Because the U.S. tax system is “pay-as-you-go,” the government expects to receive tax payments as you earn income, rather than in one lump sum at the end of
What Is “Trust fund recovery penalty”?
05/28/2026
What Is the Trust Fund Recovery Penalty? The Trust Fund Recovery Penalty (TFRP) is a penalty assessed by the IRS against individuals who are responsible for collecting or paying “trust fund” taxes—such as employee income tax and Social Security withholding—but willfully fail to do so. This penalty is unique because it allows the IRS to
What Is “Trade name”?
05/28/2026
What Is a Trade name? A trade name is the official name a business uses to present itself to the public, which is different from the legal name of the person or entity that owns it. It is most commonly referred to by the IRS and local governments as a “Doing Business As” (DBA) name
What Is “ Taxpayer Bill of Rights ”?
05/28/2026
The Taxpayer Bill of Rights (TBOR) is a legal framework consisting of 10 fundamental rights that every U.S. taxpayer has when interacting with the IRS. It ensures that you are treated fairly, respectfully, and professionally during any tax dispute, audit, or collection process. In short, it is your official shield against unfair treatment by the
What Is “ Taxpayer Advocate Service ”?
05/28/2026
The Taxpayer Advocate Service (TAS) is an independent organization within the IRS designed to help taxpayers resolve severe or delayed tax problems. If you are experiencing a financial hardship due to an IRS issue, or if normal IRS channels have completely failed to fix a mistake, TAS steps in to help. Essentially, they act as
What Is “Tax penalty”?
05/28/2026
What Is a Tax Penalty? A tax penalty is an additional charge the IRS or state tax authorities add to your tax bill when you fail to follow specific tax laws or deadlines. It acts as a financial deterrent to ensure taxpayers file accurately and pay what they owe on time. 1. Meaning of “Tax