Tax season sends everyone into a frenzy. In the hustle bustle of our daily lives, we often forget about the taxes we have to pay until the return forms are handed over to us. From then on, it’s panic mode for most people, as they try to file their returns in time.
No one wants to incur the wrath of the Internal Revenue Service and have to pay a hefty penalty along with his or her taxes. However, paying your taxes is not such a daunting task, as it seems. It only becomes a problem if you haven’t kept all your documents and receipts for your deductions and if you are unaware of all your expenses.
Then there are the tax saviors who are ready at our beck and call during the tax season, the tax preparers. If you use the services of a tax preparation company like the James Wells EA MBA Tax Office in Santa Cruz, CA, you will have nothing to worry about during tax season, as they will handle everything for you.
What Taxpayers Are Afraid Of
There are certain things that tax payers fear and most of them are irrational so they must be done away with. These include:
Claiming too many deductions
Most people fear if they include too many deductions on their tax return forms, the Internal Revenue Service will think they are trying to avoid paying their taxes and may not include these deductions.
They feel adding more deductions brings them under the Internal Revenue Service’ scanner and makes them prone to an audit. Most people prefer to add fewer deductions so that they stay under the radar.
The point is not whether you should more or less deductions, you should add as only those deductions that you are entitled to. As long as you have corresponding documents and receipts to back these up, you have nothing to worry about.
Getting audited
Most people live in fear of being audited as they feel the Internal Revenue Service will make them pay a hefty amount. But most of the time audits are only held to verify documents.
At times there is no actual meeting, you can just fax them to the Internal Revenue Service. In case you are called for an audit, you will be told in advance and will have enough time to sort out all your documents.
The Internal Revenue Service will not show up unexpectedly. You can even take the help of the tax preparers in Santa Cruz, CA to sort out your documents for an audit.
Not being able to pay the tax
If you are not able to pay all your taxes on time, you must tell the Internal Revenue Service beforehand. They will help you work out an installment plan where you can pay your taxes over a period of time and not just in one go.
Often you can end up paying your taxes in quarterly installments. However, don’t avoid the Internal Revenue Service altogether or else your bank accounts may be frozen and your wages depleted.
Not responding to the Internal Revenue Service
If the Internal Revenue Service has sent you a mail or a letter, it is best to respond to it immediately rather than wait and incur a hefty fine. Often these are just verification claims to certify your documents. There is no need to panic on seeing a letter from the Internal Revenue Service. Or else just let the tax preparers from James Wells EA MBA Tax Office handle the matter and deal with the Internal Revenue Service.
Yes, we have all done it at some time. Making a slight miscalculation in your tax return is not such a big deal. In fact, if you pay your taxes on time regularly and just this once you have made a small error in the returns, you may not even have to pay a penalty. Just consult the Internal Revenue Service and tell them your situation. You can also ask the tax preparers in Santa Cruz, CA to help you out with the same.
Thus filing your tax returns is not as scary a task as it seems. It is only people’s irrational fears that make them worry during tax season. But most of these fears are nothing to worry about as long as you have filed the right returns and calculated the right deductions.
But if you are still apprehensive about filing your tax returns, you can take the help of Santa Cruz CA tax preparers like the James Wells EA MBA Tax Office. Just click on the profile below to talk to a certified professional today.
James Wells EA MBA Tax Office