There are so many ways to define patriotism and paying taxes is one of them. Each financial year, you are required to file your taxes without fail. Looking at the implications of failing to pay such as loss of property, heavy financial penalties, and sometimes prison sentencing, you would rather pay. To most people, the problem is actually in the filing and not the payments.
Though there are several software options that they can use for their DIY tax filing, they find themselves in a crisis. Speaking of a tax crisis, you need a tax professional to help you avert it or find a way out. But, you may argue that you don’t think your tax situation amounts to a crisis and that you don’t need a tax professional. To answer this, let’s look at the signs to identify.
Signs of a Tax Crisis
- Your Tax Returns are Complex
A complex situation mostly involves small business owners and real estate investors. It can be really hard to monitor your earnings and pay taxes as you should. A tax professional will help you put things into perceptive so as to avoid a crisis.
- Recurring Mistakes in Your Filings
If you noticed some mistakes in the past few years of filing your taxes, this is a clear sign that you are facing a possible crisis. So, you have to make the necessary arrangements this year and only a tax expert can help. This will ensure that you minimize the harm that the mistakes might have caused and to prevent or lessen possible penalties.
- You Are Scared of an IRS Audit
It’s never an easy thing when the IRS flags you for a financial audit. It can be the scariest thing that you’ll ever face, more so when there are issues in your financials. To ensure that you don’t panic or do something that’ll create further doubts about your taxes, just call a tax professional. A tax professional can either work with the IRS auditors in your absence or may prepare you in advance to face the taxman yourself.
- You Recently Received an Inheritance
If you have received some inheritance, either money or physical property, you are obliged to pay taxes. The problem is that it’s often complicated. If you are not careful, you may be overpaying. A crisis is likely to occur, however, when you underpay. You wouldn’t want this as the taxman can have an unfair claim on your inheritance. A tax expert will help you retain as much inheritance as legally possible.
- You Have Relocated to a Different State
If you’ve recently moved abroad for family or work reasons, it’s important to know what your tax obligations are. You don’t want the taxman to follow you in your new residence asking for payment. It can be a real disaster. Likewise, you should be aware of your tax obligations if you work or have properties in different states. A tax professional can help you with this.
- There Has Been a Change in Your Marital Status
Whether you’ve decided to marry or get divorced, your action will have an impact on your taxes. For example, if you are newly married, a tax professional can help you decide if to file your returns jointly or individually. In case of a divorce, you’ll need professional help on alimony payout. Furthermore, you might not have divorced but have lost a spouse to death. Your taxes will also be affected. The expert will explain to you your tax obligations and the changes following the loss.
- Your Schedule is Packed But You Still Have to File Your Taxes
It’s never easy to handle loads of paperwork. It doesn’t only consume your energy but also your time. It’s generally stressful. You may have to spare some time, a day or two, to put things in order. Sometimes, you may not have the time to spare because of a tight schedule. This is a sign that a tax crisis is looming if you fail to pay your taxes. Therefore, you should consider turning to a tax expert fast.
How Will a Tax Professional Help?
To either avert a tax crisis or find its perfect solution, a tax professional from Tax Crisis Institute will help you in the following ways:
- Offer Audit Help
When facing an IRS audit, you’ve to put your financial information in order to ensure that there are no serious concerns. Though just 1% of businesses get audited by the IRS annually, it’s good not to take a chance and ask for an advance audit form a tax expert. In case you are flagged by the taxman for an audit, then you’ll know how to face the auditors.
- Simplify Tax Burden
If you’ve ever filed tax returns on your own, you must know how complex the process is. There’s so much paperwork to fill and you’ve to do it correctly. Every detail that you provide needs to be accurate before submission. If you decide to file your returns online, you have to navigate through a range of tabs. It’s generally never easy. A tax expert helps to ease your burden by assisting you with the filing.
- Lower Tax Bill
The secret to lowering your tax liability is finding credits and deductions that apply to you. Sometimes, the two are not so obvious. A tax professional will help you identify them so as you can enjoy a lower tax bill. They have the knowledge and tricks of reducing your tax bill.
- Minimize Filing Errors
The problem with most DIY tax filings is that they are prone to errors. Some taxpayers can’t really tell what their taxable incomes are and others do the mistake of entering their tax information in the wrong sections. These are minor mistakes that could create a tax crisis. The good news is that a tax professional can help you elude them as much as possible.
- Prevent Serious Consequences
The moment you write your name and append your signature to your tax records, you agree that the information provided is true and correct to your knowledge. In the event that the IRS performs an audit and realizes that you intentionally provided incorrect information, you may be liable to serious consequences. A tax professional is mandated to ensure that this does not happen. Simply, the expert protects your investment.
Clearly, a tax crisis can only be handled by a tax professional. So, it’s important to read the signs of a crisis early enough so as to seek timely expert intervention. Contact Tax Crisis Institute today for help!