As you know, it is quite important to file your taxes. Also, the tax refund is useful and if it is filed correctly, it can change your life. Thus, it is advisable to either file your tax returns or even request a tax extension. The following are vital tips to help you file your tax returns and ensure you do not suffer penalties.
Pay Taxes After Filing
There is a penalty for not paying your taxes. This can be about 1 percent per month of the total amount of tax debt. Also, IRS can charge you interest on the amount you owe them. If you fail to pay your taxes by the set deadline, you have options such as filing for an extension. In this case, you need to fill out the relevant form before the deadline which is usually set on April 15.
Another option you have is to pay the amount you can. Also, this should be done before the deadline to avoid suffering maximum penalties. It is advisable to pay your taxes using a credit card or setting up a schedule of payment with IRS. In this case, you will have money automatically withdrawn from the checking account.
Ask for Help
You should not be afraid to ask for assistance from someone to help prepare your tax returns. Nowadays, there are different companies out there that are helping people file tax returns. If you allow someone to access your tax information, then you need to fill out the Third Party Designee. The tax preparer can talk to IRS about any concerns or questions you might have about your returns.
It is unfortunate that most people forget to sign everything on their tax returns. When you sign your tax return, it means that you are declaring under the law that the information you have provided is accurate and true. You cannot cross out perjury statement and if you do, it will invoke a civil penalty. Moreover, your tax return cannot be accepted for processing. Other than the signature, the date of return must be the day you signed it. Also, telling the IRS your telephone number and occupation is optional.
Prepare Filing Your Taxes Early
If you realize that you owe IRS money, then you should increase your income tax withholding. This will prevent this from happening again. In this case, you should fill the relevant form and then give it to the employer.