Tax Problems: Understanding and Managing Tax Issues
Tax season can undoubtedly prove a stressful time for many individuals, particularly those who’ve got tax problems to deal with. These problems can vary from minor errors on your tax return to more complex matters like owing back taxes or even IRS audits.
That said, this post will explore some common tax problems and how to avoid them. Read on.
Common Tax Problems
A few of the most typical tax issues that people face include:
- Owing back taxes
- Failure to make projected tax payments
- Late filing of tax return
- Making invalid deductions
- Failing to report some of your income
Avoiding Tax Problems
To avoid common tax issues:
- File your tax return on time: You can easily avoid late filing penalties through timely filing of your tax return. Suppose you require additional time; you may seek a deadline extension.
- Pay back owed taxes: If you have unpaid taxes, settle them as quickly as possible to avoid incurring penalties and interest. Assuming you cannot clear the whole amount in one go, the IRS can be open to working out a flexible payment plan with you.
- Disclose all of your earnings: You’re obligated to report all your earnings, from salary to dividends, interests, tips, and other miscellaneous income.
- Pay estimated taxes: In the case of taxable income that’s not withheld, e.g., self-employment income, the IRS may need you to pay estimated tax payments. By doing so, you can elude underpayment penalties.
- Claim valid deductions: Only claim tax breaks for which you qualify and have supporting documentation.
Talk to a Professional Tax Attorney Today!
We understand how time-intensive and daunting tax issues are. But they don’t have to be, and with the tips above, they won’t be. However, if you’re dealing with a more complex tax problem, it would be best to seek advice from a tax professional.
Luckily, that’s what Cumberland Law Group is all about. Our team is of the most trusted tax attorneys in Atlanta who can help with all kinds of tax issues, big or small. Our team can offer assistance in areas such as, but not limited to:
- Tax Audits
- Penalty Abatement
- IRS Fresh Start Program
- Tax Court
- Innocent Spouse Relief
- Tax Lien Release
- Criminal Tax
- Sales Tax
- Payroll Tax
- Levy and Wage Garnishment
- Trust Fund Penalties
- Tax Preparer Penalty
Whatever tax problem you’re facing, our tax attorneys can help. So, don’t hesitate to contact us today for all your tax needs.