Common Mistakes People Make When Dealing With The IRS
Dealing with the IRS is a walk in the park for many people. They file a tax return each year with the help of a tax resolution expert and either enjoy a refund or pay the balance due. But for most others, dealing with the IRS is a thorny path filled with obstacles. Those challenges could be a result of a simple mistake—either on the part of the IRS or the taxpayer—or they may happen when you can’t pay the balance due, can’t pay on time, or your tax return is selected for audit. Regardless of the cause, handling IRS problems successfully means adhering to certain rules and knowing your rights.
However, even though the rules are complicated, most of the common mistakes taxpayers make on their returns are relatively simple to avoid. To ensure you make the most intelligent decision for yourself, Ultimate Tax Relief has got you covered! Read on to learn about the most common mistakes people make when dealing with the IRS.
1. Not filing tax returns on time
You will incur different penalties and owe interest to the IRS if you file your return or tax extension on time but do not pay the taxes you owe by the deadline. Many people fail to file their tax return by the due date and this causes them to end up with a tax penalty of up to 25% on what is owed. This amount is owed just by filing after the tax due deadline.
2. Filing jointly with a spouse, instead of Married filing separately
Often, a self-employed taxpayer will fall behind on their taxes by failing to make estimated tax payments for several quarters or even years. This will eventually cause a huge tax debt for the taxpayer. Filing a joint tax return with a spouse will cause both taxpayers, including the compliant spouse, to be liable for the tax debt. The non-liable spouse will now lose any refund due because it will go towards the taxes due. A better option will be to file the injured spouse form so that the compliant spouse will get their refund and the non-compliant spouse will stay with their tax bill.
3. Taking on the IRS on your own
The IRS is mighty and without in-depth knowledge of the tax laws, you cannot tackle the IRS on your own. It’s advisable to hire a Tax Resolution expert to help you fight the IRS. The IRS is not your friend; they will not give you any tips. The main objective of the IRS is to collect what is owed to them. The tax resolution professional will know about the statute of limitations, penalty abatements, reasonable collections potential and properly structured installment plans. Get a tax resolution expert on your side!
To avoid these and other mistakes people make when dealing with the IRS, reach out to Ultimate Tax Relief - Tax Resolution Specialist In New York City. Ultimate Tax Relief was founded by Bernell C. Ward, who has extensive experience working with individuals and businesses. He has been active in the industry for 30 years. His expertise covers accounting matters, bookkeeping, tax preparation, and other tax-related concerns. He has made his mark as a dependable and efficient professional who will go out of his way for his client’s satisfaction.
Bernell wanted to specialize in tax relief, as he felt this was an aspect of service that a lot of clients needed.
Bernell is an enrolled agent, which is defined by the Internal Revenue Service (IRS) as “a person who has earned the privilege of representing taxpayers before the IRS.”