3 Things You Need to Know When You Owe Taxes
Filing taxes can be a frustrating and difficult situation. Depending on the complexity of your tax situation, you may find that you experience problems with your tax return. Fortunately, a tax law attorney can help with a number of common problems. Here’s what you need to know.
No one likes doing their taxes. Filing taxes can be a frustrating and overwhelming situation, which is one of the reasons that so many people simply put off doing their taxes. Other times, taxpayers make mistakes when filing their tax forms. In some cases, taxpayers choose to “fudge” the numbers or make judgment errors when they complete their tax forms. Unfortunately, filing your taxes late or incorrectly can lead to many problems. If you are contacted by the IRS or you find out that you owe taxes you cannot pay, there are a few things you need to know about moving forward. Keep in mind that an experienced tax law attorney can help assist you with questions and solutions during this time.
IRS audits can happen to anyone.
Whether this is your first year filing taxes or you’ve been doing this for ages, it’s important to remember that anyone can be audited by the IRS. Typically, the IRS will reach out to you and request more information in regards to your tax forms. In some cases, the solution can be simple: perhaps you forgot to include an important form or maybe you transposed a number. Understand that being audited doesn’t necessarily mean you will have to pay large fines or that you will be penalized. Sometimes there is an easy solution.
Offers in Compromise are an option.
In some cases, you may be able to work with the IRS to pay less than what your original debt is. This is called an offer in compromise. If you have a hardship that prohibits you from being able to pay the full amount you owe, you can discuss this with the IRS. Note that you will need to provide evidence of your hardship. Your attorney can help you gather the materials you need.
You may be able to request an extension
If you haven’t paid your taxes because you are financially unable to at this time, you may be eligible to request a extension. This doesn’t mean that you will not have to pay, but it will give you more time in which to gather the monetary funds you need to pay what you owe. Understand that even if you are able to defer your tax payment, interest will still accumulate on your account. This means that the final amount you’ll need to pay will be larger than the original payment amount.
If you have questions about a recent tax return or you received a letter from the IRS, it’s time to reach out to a tax attorney who can help. Your lawyer can help assist you with your tax questions and will help explain the situation to you. They will assist you in gathering documentation, filling out forms, and moving forward with your tax situation in a way that is beneficial to you.