Encountering Different Tax Problems
There are so many different forms to fill out and documents that you need to have when you are filing taxes every year
. It can be a very confusing and frustrating process because you want to make sure that you are doing it right and that you are getting the most amount of money refunded to you that you deserve.
When it comes to using paper for forms, the federal government has everyone beat. Even though they try to explain it as well as they can, there are so many different things that factor into the whole process that makes it hard.
Almost everyone that owns their business or works multiple jobs will hire an accountant to help them file. It is worth their money to have someone else figure out what they need to do.
It may cost them some money to hire someone but it usually saves them from any problems coming back to them. If you hire an accountant to file for you, they know all of the tax laws and can help save you some money in the end.
So what are some of these problems that people run into? The first type of problem that people come across is with their payroll taxes.
The IRS makes sure that they are collecting on past due taxes you may owe so it is important for you to make sure that you are up to date with all of your payroll documents. You should also check to see that you have the correct information filled out before you begin employment.
Do not withhold too much money from each pay stub because you might end up having to repay the government later. Check the appropriate box for your family so that the proper amount of money is being deducted from your pay check every week.
Keep a spreadsheet of your payroll stubs so that you can reference them later. Include how many taxes are being taken out each paycheck and for how much.
Another problem you may come across is liens. Liens can be put on your personal property (i.e. your home, real estate you own, or business) and shows that you owe money on it. If you pay your taxes on time, you will not have this problem.
And if you do not buy property that already has a lien on it, you will not be held responsible for paying back the loan. Another type of problem that you can have is called a levy.
A levy is an attempt by the government to receive payment of back taxes from you. When there is a levy placed on you, it gives the government the ability to take money straight from your savings and checking accounts.
In addition to a levy, the IRS can also incur seizures, wage garnishments and audits against you. These do not only affect your bank account but will also affect your financial history for the rest of your life.
For example, when you go into a furniture store to purchase a large two thousand dollar item, the cashier looks up your credit history. When they see that you owe the government money or that you have not been able to pay back previous loans, they will not sell you that piece of furniture.
They do not trust you that you will be able to pay it back or even intend on paying it back so they do not sell it to you in the first place. The same process is also followed when you are trying to buy a car.
Before anyone will sell you a car, they are going to make sure that you are able to pay them back. If you have a bad credit history and if there is a levy, lien, seizure, or wage garnishment placed on your finances, then you will not be able to qualify for loans to buy cars and homes.
There are many other tax problems that you can have but all of these are very preventable. If you are careful with your finances and make sure that you pay all of your taxes every year, you can avoid these problems in the future.
by: Jack Landry
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