Five Ways To Avoid IRS Tax Problems
From business people and entrepreneurs to college students, individuals from all walks of life can feel overwhelmed when confronted with IRS tax problems. However, don’t panic if you get into a bit of trouble with the government; through the help of dedicated professionals, you can efficiently deal with these problems. Here are five ways to avoid serious tax problems this season.
1. File Returns Regardless of Personal Circumstances
Individuals need to file tax returns, even if they feel they have earned no taxable income. Some people go for years without filing returns. These misguided individuals may feel that if they’ve lasted so long without facing disaster that they can continue for years to come. Regardless of individual circumstances, not filing tax returns is a prosecutable federal crime. IRS agents have a habit of waiting until people are comfortable before moving in with swift, decisive action.
2. Pay Tax Bills on Time
The best way to avoid tax problems is to pay taxes fully and in a timely fashion. Beyond simply paying late fees and penalties, late payers increase their likelihood of facing audit. The IRS uses a software algorithm to influence its random selections of taxpayers for auditing. While the IRS naturally keeps details of this algorithm secret, any taxpayer actions that hint at noncompliance can likely cause problems.
3. Find Professional Tax Help
Fortunately, experienced accountants and tax attorneys have mastered plenty of techniques for guiding their clients avoid tax headaches. These attorneys can help people negotiate settlements with the IRS. Without these settlements, people can struggle with burdensome tax liens on their properties and possessions.
4. Communicate With the IRS
Individuals with tax problems should continue communicating with the IRS, no matter how unpleasant these interactions may become. Without adequate communication, the IRS may take drastic action by issuing levies. Levies are direct, enforceable requests for money from banks or other responsible institutions. For example, the IRS serves levies to banks to tap bank accounts for unpaid taxes. The IRS generally only issues levies when taxpayers are totally non-compliant.
5. Understand the Authority of the IRS
Some taxpayers simply postpone IRS negotiations with honorable intentions to comply at later times. Many assume that tax bills are subject to statues of limitations and are waiting until their problems disappear. Remarkably, the IRS is not bound by any statute of limitations. The IRS has tremendous power to seize homes, cars and all other assets. The tax authority continually gains new powers to harass and hound taxpayers. By exercising prudence and utilizing professional help, taxpayers can usually avoid IRS tax problems.
This is simply some advice to help you stay out of IRS tax problems, not a solicitation for legal services or tax help.
Featured images:
License: Creative Commons image source
By Jordan Mallory, a single mom with experience working in taxes who writes as a hobby on the side.
Categories: Federal Tax, Income Tax, State Tax, Tax Evasion, Tax Law Tags: IRS, irs audit, irs extension, irs tax credits, irs tax services, irs wage garnishment
How To Deduct Moving Expenses For Taxes
While you move, you have already made the decision to invest in moving services in order to get your belongings to your new place. After all, moving all your furniture on your own can prove to be difficult as you may damage your own stuff. For that reason, you need to make sure that the respective mover you are about to hire is providing moving supplies, a moving truck, relocation insurance, and other required things like tools.
However, that’s just the logistics. What you’re really interested is saving money on your move. Luckily, you can deduct your move as an expense since the Internal Revenue Service or IRS has made it possible for particular expenses such as moving to be deducted on your tax return. If you went beyond your budget when you moved, this is a way to get back. Think about it like a rebate!
Most people who move every single year don’t take advantage of this deduction because they simply don’t know about it. Also, many people think that it’s more difficult than it really is. The question always arises: is this really deductible? How can I do it?
Honestly, deciding what you can deduct within your moving costs is quite easy. In this aspect, there are only some specific expenses which may be officially deducted through your taxes. These are things which the IRS sees as ‘acceptable deductions’ related to moving-related expenses such as:
- Costs that are directly connected to traveling from your old to the new destination
- Oil or Gas expenses
- Parking fees
- Mileage deduction (calculated by the mile)
- Tolls charges
- Shipping
- Connection as well as disconnection of utilities
- Costs related with the particular handling of moving pets
- Packing, transporting and crating of the household items as well as personal belongings
- Storage of private belongings for about 30 days from your move date
Here, you can find the cost amount associated to the move is also deductible. The main point again is to stay within your budget so you don’t get in financial trouble. You can deduct even more things when it comes to moving, but you may want to speak with a tax consultant. Avoid having a with the IRS. Don’t go off deducting moving related costs that do not quality, such as:
- Any charges connected to extra side trips for sightseeing as well as for visiting relations
- Costs associated to common vehicle repairs or maintenance during moving
- Costs of foods and meals within travel
- Also, the cost of your vehicle’s insurance
It is also vital for you to remember that while you are moving from one destination to another, you must be aware of the distance that you need to drive. It will help with getting an accurate quote and planning the trip to your desired destination. Moving is always an expensive agenda, so know there’s no way to escape that unless you plan on moving everything on your own. Prepare to pay a few thousand dollars if you are moving across state borders, and probably a few hundreds if you are moving in town. If you plan on moving by yourself, you may not be able to deduct as much as you will if you use an actual moving company. Research is a great way to find out what you can and cannot do when it comes to deducting moving expenses. Doing research will also help you plan for the best move, especially if you are about to do it on your own.
Tax deductions also occur at the coporate level when moving, as many commercial businesses and offices move every year. Businesses have so many costs so it’s important for them to itemize every expense, especially moving expenses. Everyone relocates at least once in their lifetime, but this fact is not only true for residential consumers. Surveys show that most business who survive at least 5 years in business end up expanding their business by moving to a new location which offers more space and accomodation. For commercial businesses, a moving company is normally hired and so the cost is easily deducted by the end of the quarter. We believe that it is truly beneficial to hire the services of a moving company, for an easy and smooth relocation experience.
Article by Isaac Atia, Head SEO Consultant at Premier Movers, a full service moving company based in North New Jersey. Premier is also known as extremely reputable NJ Movers and relocate hundreds of people every year.
Categories: Federal Tax, Income Tax, State Tax Tags: federal tax, tax, tax credits, tax deductions
You’ll Be Hearing From My Solicitor!
Okay, so that heading was a shameless ploy to get your attention. It’s a line beloved of dramatists when, usually rather over-starched, people get themselves into some kind of difficulty. But, in the same way as a dog isn’t just for Christmas, solicitors aren’t just for the bad things in life. You don’t need to be involved in a court case in order to need one.
Safe as Houses
Property is an area where solicitors often come into our lives. Most of us will encounter a solicitor when buying or selling a house as they handle the conveyancing process. This is the transfer of the legal title of the property from one person to another and the filing of all the paperwork associated with it.
The conveyancing process usually takes several weeks though the exact time can vary depending on a number of legal, personal and financial issues. The sale contract isn’t legally binding until contracts are exchanged.
Where There’s a Will, There’s a Way
The other area where solicitors come into people’s lives is wills and inheritances. It’s possible of course to write your own will, but solicitors have the experience to write it in such a way that you ensure your wishes are carried out. Solicitors can also help with the administration of your estate when you pass away and planning for inheritance tax. They can also store your will safely for you so that your relatives know where to find it.
Business Management
If you run a business then you’ll probably need to be involved with a solicitor for that too. Again they can help with property transactions, although a solicitor can also make sure you’re on the right track with other contracts too.
You may require help drawing up shareholder agreements or partnerships for example. Or you may need to draw up contracts for mergers or buy outs. If you’re buying a franchise or carrying out some form of intellectual property transaction then you’ll probably need a solicitor to help you with that too.
Using a solicitor to help you draw up employment contracts can ensure that you avoid disputes later. Getting the legal issues right is particularly important when it comes to things like redundancies and dismissals. Getting the advice of an employment lawyer early in the process helps ensure there won’t be problems in future.
Finding a Solicitor
When it comes to finding a reputable firm of solicitors, try to find one that specialises in the area of law that you need. The Law Society’s website lets you search for local solicitors and the areas they specialise in.
It’s important to find out about the fees that will be charged before you approach a solicitor. Many firms will offer a free or low-cost initial interview to allow them to find out your requirements and help you to decide if you want them to work for you.
It’s important to be clear when briefing your solicitor and to keep copies of all relevant paperwork. If you need to send documents through the post, make sure you use a secure method like recorded delivery to ensure that they arrive safely.
Whatever you need a solicitor for; you should be able to find a firm in your locality. There’s nothing to stop you shopping around a few different firms to ensure you find one that you’re comfortable working with and that is able to meet your needs.
Paula Whately is a writer who understands that a solicitor can be an important person to seek help from in many situations. If you are looking for reputable solicitors, Camberley experts can guide you in finding one which suits your personality and needs
Categories: Federal Tax, Income Tax, State Tax, Tax Evasion, Tax Law Tags: business management, law, property, solicitors, sourcing, wills and trusts