This is to help you correctly declare your income and make claims for credits and deductibles in order to ensure you can file with confidence. We have compiled the most common tax issues troubling taxpayers nowadays after analyzing the Internal Revenue Service’s latest statistics.
Furthermore, people in Needham, MA, should get help from an experienced CPA in Needham, MA to tackle the problems faced by taxpayers.
Problems often faced by tax payers
- Penalty for taxes.
If you break the tax code, you may face penalties issued by the IRS. This, along with the IRS’s filing, reporting, and payment requirements, comes with penalties. Usually, there is a civil penalty for tax code errors. Furthermore, although it is rare, legal action may be taken, given the current situation.
You have to obey all instructions if the IRS informs you of an additional fee as a penalty. Aside from making sure that all the information is correct, carefully read the letter and make sure you respond by the due date.
- Overdue Taxes.
Plenty of people completed their tax filings and later realized they had unpaid taxes and had failed to make the required payment by the deadline. For each month that the amount isn’t paid in full, you will be charged with a penalty on your unpaid taxes. Furthermore, the cost of interest on the outstanding amount will be charged by the IRS.
Paying the IRS the entire amount owed as quickly as you can is the best way to settle overdue tax debt. By doing this, you’ll pay lower taxes and extra fees over time.
- Warnings of Math Errors.
Calculating the numbers can be one of the many causes why filing taxes can be difficult for some people. Millions of taxpayers received math error warnings from the IRS last year for issues such as missing data, improper numbers, mathematical mistakes, and criteria requirements.
- People Who Don’t File.
Many of people and companies miss the deadline for filing their mandatory tax returns each year. The IRS uses outside information returns to track down those who do not file taxes, prepare replacement tax returns, and determine the amount of taxes, charges, and other charges that must be paid.
- Theft of Identity Related to Taxes.
Identity theft connected to taxes occurs when a person takes your private information, such as the Social Security number you use, with the intention of filing a bogus tax return and getting an unauthorized tax refund.
Contact a CPA today!
If you wish to save yourself from the hassle of facing these problems during the tax season, contact a professional CPA in Needham.
