With tax filing season approaching, some people may find themselves making some common mistakes that can easily be avoided with help from a professional tax preparer.
One of the most common difficulties people can get themselves into is failing to file returns. This may turn out to be more common this filing season than in the past because a larger number of people have been out of work or struggling with their finances in general.
With that in mind, the IRS Web site provides more information on why it is important to complete a tax return even if a person is unsure they can pay their obligations outright. According to the IRS, the failure to file penalty is 5 percent of the tax due for each month the return is late, up to a total maximum penalty of 25 percent.
There is also a failure to pay penalty which is 0.5 percent for each month the tax is not paid. The difference between these two penalties alone is a good reason for people to complete their returns in a timely fashion.
Those who do face difficulty paying can often work out a monthly payment plan with the IRS.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.