How You Can Avoid IRS Trouble This Tax Season
There’s nothing quite as refreshing as spring. Despite our mildly pleasant temperatures throughout winter in southern California, springtime is an official introduction to sunshine, outdoor activities, and … taxes. (It’s okay to groan.) Tax season may not be as invigorating as a fresh, springtime day, but there are some simple ways you can make this season feel like a breeze.
Paying and filing your taxes by April 15 will make this season much lighter on your stress level and your finances. It’s best to start your taxes early, but if you are pushing the deadline, you can file for an extension. However, that extension only applies to filing your taxes. You will still have to pay your taxes on time to avoid a penalty. If you fail to file or don’t get an extension, you could be cited with a filing penalty, which is typically larger than a failure to pay penalty.
For people who would much rather avoid math and numbers, tax season can be filled with anxiety. But making sure your statements are accurate is the best way to circumvent Internal Revenue Service (IRS) problems this season. A simple tip is to remember that expenses rarely end in zeros. So, when you file an expense as $400, a red flag immediately goes up at the IRS. Instead, make sure your numbers are as accurate as possible.
If you have a unique situation — such as being self-employed — your taxes may be different than the standard taxpayer. Unfortunately, whether it’s intentional or not, those with unique taxing positions can find themselves in trouble because they fail to file correctly or don’t accurately document their withholding. If you’re unsure of what to do, search for more information online at IRS.gov.
Keep in mind, abiding by these tips does not guarantee you’ll be completely protected from tax troubles, but you can certainly lower your chances for trouble by following them. If you are struggling to pay any back taxes you owe the IRS this tax season — or any other season — we are here to help.