10 Tax Facts You Should Know (part 2)

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Yesterday, I shared 3 tax facts you may not be aware of. The first was that the April 17 tax submission deadline is not set in stone (it can be deferred). The second was that you might be leaving money on the table if you have not claimed your rightful deductions. And finally, you do not have to fear tax audits if you have the relevant documents to justify your deductions. Here are some more tax facts you should know. Click here to read or watch more IRS Help resources.

Tax Fact #4 – You Should Seek Professional Help for Your Taxes
I am saying this not merely because I am a tax attorney but because I have seen many people lose more money by not hiring professional help with their taxes. The US tax code is a highly complicated body of laws so having a professional can help you navigate these laws to your best benefit. A tax attorney can identify errors by the IRS that could cost you money, such as technical oversights in payment the IRS is making you pay.

If you have a tax dispute or want a tax attorney to oversee your tax case, call us at (813) 295-7648 for a free consultation.

Tax Fact #5 – Most Audits Do Not Result in Paying More Taxes
The IRS has admitted that most of the correspondence audits they conduct do not require additional payment, only more information. But the IRS will not say they are not after more money – its more likely sending you an audit notification because of a discrepancy on a deduction or reported income but the onus is on you to prove otherwise. But if your case is more complex, you can get assistance for free at www.irs.gov/advocate or alternatively contact us at (813) 295-7648 for professional help and a free consultation.

Tax Fact #6 – You Have Several Options for Paying Taxes
Sadly, most taxpayers only know 2 ways to fulfill their tax obligations – pay in one lump sum or pay in installments. If you find it difficult to pay your taxes, you actually have a few options. Firstly, you can apply for an Offer in Compromise (OIC). An OIC is a way for you to pay less than what you owe in taxes. But this is open only to those who genuinely cannot afford all their taxes. You must prove that you do not have the assets or income to pay off your taxes and there may be an application fee of $150.

The next option is to for those who owe not more than $50,000 in taxes. You are eligible to negotiate a payment plan with the IRS. Under such a plan, you may even set up a deal with the IRS to suspend payment of you taxes for a period of time due to financial problems until your situation improves.

Finally, the IRS has introduced a program this year that gives you 6 months to pay your taxes without being charged a penalty. This is provided you have been unemployed or self-employed and your income has decreased by 25% or more in 2011.

Stay tuned for the final 4 tax facts in our next article.

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