A pay stub may say "tax blocked" next to state or federal withholding if earned income is in a currency that is not easily convertible to U.S. dollars, according to the Internal Revenue Service. These restrictions are placed by the country in which the income is earned.
U.S. taxpayers are expected to pay taxes on all earned income, including foreign income, in U.S. dollars. If not able to do so due to restrictions imposed by the country in which the income was earned, a taxpayer has two options for reporting this income. One is to postpone reporting the blocked income. The other way is to report the income and pay it with what U.S. dollars the taxpayer has in the United States., as explained by the Internal Revenue Service.Learn More
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.Full Answer >
A self-employed person is defined as someone who is in business for himself, while an employee works for another individual or company and is under control of that individual or company, according to the IRS. A self-employed individual receives a 1099 for his wages, while an employee receives a W2.Full Answer >
Import and export tariffs, which can be either ad valorem or non-ad valorem, are some of the ways that governments alter international trade to their advantage and regulate their economies. Ad valorem tariffs, which impose a customs duty on the value of a product or commodity, are the most common. Non-ad valorem tariffs are based on physical quantities and can be specific, mixed or compound.Full Answer >
The only state without a sales and income tax, as of 2015, is the state of Alaska. There are, however, seven states without income taxes and five without sales taxes. There are also two states with only limited individual income taxes that cover dividend and interest incomes.Full Answer >