Last Updated on Dec 23, 2019 by James W
There’s something exciting about getting a new job that pays more than your previous job. It makes you want to be smarter about your money and finances. That should include setting goals for next year’s taxes so you’re better prepared. Tax Resolution Services can help you stay more prepared for the coming year.
Tax season is a difficult time for most taxpayers. But it doesn’t have to be costly and time-consuming. Here are seven of the most common tax problems that you can avoid by hiring a tax professional.
Using the Wrong Tax Professional
Most taxpayers make the mistake of hiring the wrong tax professional to prepare their taxes. There are some incompetent and inexperienced tax professionals who commit fraud, make mistakes, and mislead these taxpayers. Thankfully, this can get resolved by going to a certified tax professional. Be aware of tax professionals who promise a refund amount before they go over your tax returns.
You should also be wary of any tax professionals who take a percentage from your refund. If someone attempts to commit fraud under your name, or if you find any mistakes with your tax returns, hire an attorney who can step in on your behalf. You can also use this time to find a qualified tax professional who has several years of experience and has positive reviews.
Not Filing Your Taxes on Time
Twenty percent of people don’t file their taxes on time. Not filing your taxes can lead to serious penalties and other tax problems. If you put off filing any longer, you’re more likely to make mistakes on your tax returns. This can lead to a costly and time-consuming process. If you failed to file your tax returns in the past, speak with a tax professional who can assure you that your unfilled returns may prevent your credits or refunds toward the next year.
Not Filing Your Taxes at All
You should still file even if you can’t afford to pay towards your taxes. One option is to file an Installation Agreement Request with a tax professional. This form includes a payment schedule so you can avoid upfront costs. While interest and penalties are involved, those fees are lower than the fees for not filing your tax returns.
The next option is to file an automatic extension. This is a form that allows you more time to file your income tax return. While this doesn’t extend your payments, your interest and penalties are much cheaper.
Making Basic Math Mistakes
Don’t let a simple math mistake turn into a costly mistake. Ask your tax professional to double-check your tax returns to ensure that everything, such as your deductions, is added up. A qualified tax professional can help you avoid making mistakes on simple mathematical problems.
Not Filling Out Forms Correctly
One of the biggest mistakes that taxpayers make is not looking over their forms before filing them. For example, entering your personal information and social security number incorrectly can lengthen the filing process and delay your return. A tax professional can help double-check your information, make sure everything is entered correctly, and verify your bank account and routing numbers. You should also consider e-filing your taxes since it’s affordable and faster.
Filing the Wrong Tax Forms
A similar mistake you could end up making is not filling out the right tax forms. Your tax professional should make sure that the form you’re filling out is the one that’s relevant to your tax situation. Form 1040 is the form used for those who are self-employed or own their business, while Form 1040EZ is for those with basic tax situations. Don’t forget to claim any stock dividends you have made on investments.
If you notice any errors on your W-2 Forms or other forms, address them to your tax professional as soon as possible. If you don’t, the IRS will investigate your tax situation. If your tax professional files your forms electronically, make sure they validate your information and electronic tax return.
Not Keeping Up With Tax Changes
Keeping up with the latest laws is difficult, but it’s important. It turns out that filers are eligible for tax credits they weren’t eligible for the previous year. A qualified tax professional can help you stay informed on the latest tax changes. This can help you avoid tax problems, get more money back, and make sure you’re taking advantage of the benefits that are provided to you.
You can also visit the IRS.gov website to read the latest news on tax changes. While this guide can help you avoid the most common problems, there is a chance that you may have found yourself in a similar situation. If you’ve been faced with a federal tax lien, speak to a tax professional who can provide you with more information or a resolution to your problem.