07 Jul Do You Want To Avoid IRS Problems?
Although not everyone is of the same opinion when it comes to tax, at the end of the day it is taxes that pay for government, essential community services such as fire fighters, police, etc. When we all work together and contribute appropriately according to our means, then everyone benefits. However, every so often people experience IRS problems. This is not always as a deliberate and wanton act of defiance but may be an act of omission or uncertainty.
File Your Tax Return
The first thing to do is ensure you file an annual tax return. This will ensure you pay the tax you owe. There are specific requirements and bands or levels of taxation, so if the figures you submit are honest and truthful, then you will pay the right amount of tax. That’s the theory anyway, but sometimes the truth is that there are tax deductions that many people are unaware they can claim.
Hire A Tax Accountant
If you are able to hire a tax professional, it is advisable that you do so. Particularly if your income is not straight forward. They will be able to advise you on what you can claim in tax relief and what you can’t. They can save you money in the long-term, not just from a tax relief point of view, but also help you to avoid penalties or fees from the IRS. If there are any queries relating to your tax return, then they can deal with this for you. That takes the stress and worry from your hands and is worth its weight in gold.
In order to ensure your tax return is accurate it is important that you report all your income, so it can be declared. This includes things like bonus payments from employers, or
Are Your Details Correct?
It is essential that your details are all correct with the IRS. For example, if you change jobs and your new employer does not correctly spell your name, that can have an implication on your tax code, and ultimately the amount of tax you pay. Even if you have remained in the same job for a number of years, ensure you always complete your tax return in the same way, with the same spellings (not abbreviations or missing out a middle name, etc.).
My Friend Says….
We all have friends that love to give advice. However, just because you heard someone say you can get tax relief on something, does not make it true. Of course, you can as a tax professional about it, and as they know the tax laws they will be able to confirm or deny it for you. If you take advice from your friend and it is incorrect, you will be liable for the penalty. Always check your facts or hearsay before establishing it as fact. If in doubt you can call your tax office or look it up on the official website.
Never Ignore IRS Communication
The word “IRS” fills some people so much with dread that if they receive communication form them they bury their head in the sand and either do not open the letter or open it and not being able to understand the contents, disregard it. Do neither. If you do receive a letter, take it to a tax professional and ask them to help you with it. If you disregard any communication, this will red-flag your account and the IRS will be more likely to look more closely into it. Even if everything you submit is accurate. Dealing with subsequent letters or processes is a lot more difficult and stressful than dealing with an initial enquiry.