How to Overcome Common Tax Problems?

Posted by Lucas Bell on February 5th, 2018

You always want to pay your taxes on time each year. But when try for the same some issues occur and it prevents you from being compliant with IRS.  Even small errors have the potential to cause large problems later on. Here are some tax problems people faces by discovering the best solutions for them.

Not Filing Taxes on Time

It is one of the most common mistakes. If you have unfiled taxes, you might have not only incurred fines and also risk going to jail. In fact, according to IRS not filing taxes is considered as evasion and that may have stronger ramifications. As there are severe penalties so you should try to file the late returns as quickly as possible. You should also consider filing them if you want to request any delayed payment arrangement or installment agreement from the authority. Once you file your returns, you will be seen as compliant with IRS and are no longer in trouble for non-payment of taxes and incur heavy fines.

Can’t Pay

You have not filed taxes because you know that you are not in a position to pay outstanding taxes. In such situation, the worst thing that you do is to avoid filing your returns. Instead, a better option would be to learn about the various payment options that IRS makes available to those who have large outstanding tax. There are some payment options available like the IRS fresh start program, installment agreement, offer in compromise or the currently non-collectible status. With the help of these options, you can pay your taxes and protect your finances from getting sore. It is always better to seek tax help who can further advise one each of these options. With professional help, you can submit proper documentation for each solution.

Penalties & Interest

When IRS charges penalties & levies interest on the same, you end up paying even more money to settle the account. It is always better to seek tax help if you want abatements to go in your favor.  To avail it you must give reasonable cause, or seek an administrative waiver or IRS error.

In The End

For an individual who is paying taxes for the first time, it all may sound very complex, but you should seek tax help to overcome them.