IRS Tax Issues: 3 Things You Should Never do with Your Taxes
Be Prepared: Most people learn more from their mistakes. But you don't want to make a mistake when it comes to IRS Issues. Your debt could go from being $100 to $1,000 dollars easily. So be prepared! Here are three key things you should NEVER do when handling your IRS Tax Issues.
1. Get to it “Later”
Procrastination can drain your bank account. Take care of your IRS notices Now not Later. Time will run out, and your debt will be larger than ever. Remember:
• The IRS adds interest and penalties for every month your IRS Debt goes unpaid
• Put it off long enough, and the IRS will be forced to use their collection methods against you. That's right, the infamous IRS Liens, Levies, and Seizures
2. Fail to Proofread
Even tiny mistakes can cost you big when it comes to IRS Issues. For example, when you submit Form 656 “Offer in Compromise” you have to pay a $150 dollar application fee. If you make a mistake the $150 is nonrefundable! Double check every section of an IRS document before you submit it! Common errors include:
• Not answering every question. Fill the form out completely, leave nothing blank
• Not including supporting documents when necessary
• Not signing all paperwork when and where you are required to
3. Neglect to File
Every year people refuse to file their taxes. They rationalize, “I can't pay my taxes this year, so I shouldn't file!” Bad idea. Failure to file is illegal. And although few people are thrown in jail, the maximum sentence you can face for failing to file your taxes is 3 years. If you are taken to court for failure to file, you will be held responsible for court and Attorney fees. If that doesn't convince you, check out some more reasons why you MUST file every year:
• Late filing penalties and interest will make your debt skyrocket out of control
• You will not qualify for Penalty Abatement or an Offer in Compromise if you're not current with your tax filing
• Some employers can fire you if you are not current with your tax filing. (These are usually government jobs)
Final Tip: So now you know the Top 3 things you should do make when you are handling your Tax Issues. But what will happen if you're already guilty of one or all three of these deadly offenses? It's never too late.