For many people, tax season causes a great deal of stress. Many dread the season, whether it is the pressure from organizing their financial documents or the fear of getting audited. However, this year, instead of stressing over your taxes, it is time to conquer your tax anxieties.
IRS compliance rules concerning offshore accounts
As a taxpayer, you should know that having assets in unreported offshore accounts is illegal and can result in tax evasion. The IRS has made offshore accounts compliance a crucial enforcement priority. In recent years, the agency has intensified efforts to identify offshore accounts, conducted offshore-related audits and pursued charges leading to criminal fines and restitution. In a situation where you are scared that the IRS will single you out, the solution is to be realistic and prepared. Note that you jeopardize incurring penalties and fines when you have unfiled offshore taxes.
Notification of tax lien and sale tax issues
There may be a situation where you have not filed your tax returns correctly, or perhaps the Massachusetts Department of Revenue is pursuing a sales tax audit. In a quest to recover outstanding taxes, the IRS can claim property, known as a federal tax lien. The tax lien helps the government reclaim your unpaid tax debts. If you repeatedly fail to file your sales returns, you are subject to enforcement measures such as criminal prosecution and more. An effective way to resolve a tax lien is to pay your tax obligations in full and file any delinquent returns voluntarily.
Keep up with the constantly changing tax rules
Tax laws change yearly. Therefore, you should stay updated on all changing tax laws to prevent any last-minute hassles. A common problem for taxpayers who prepare their own taxes is failing to track these changes and subsequently making mistakes. A viable solution is to get help from tax professionals who stay informed on the tax rule changes.
Late tax returns
Another common mistake is not filing your taxes on time, which could lead to costly penalties. It is important to file your returns that are due regardless of whether or not you can pay them in full. Nevertheless, the IRS has a time-honored policy that it will not prosecute individuals for failing to file their taxes on time if they voluntarily file any past or due taxes.