Tax is complicated, no doubt about it. So, you would need every guide and resource you can get your hands on to make sure you’re paying your taxes right and you know what options to explore should you have tax troubles.
This is what we envision to do at KF Tax & Accounting, P.C., through our comprehensive tax services in Round Rock, Texas.
Thus, on part two of our entry, we will continue to enumerate some of the most common tax problems and the available remedies you can turn to.
- Owing too much that you cannot pay your income tax return on time, even with an extension
Aside from penalties and compounded interest on the entire unpaid balance, you are risking enforcement action by not paying your taxes on time. However, the penalty is far less—up to 0.5% of your unpaid taxes for each month you don’t pay, although the interest rate is equal to the federal short-term rate, plus 3%.
In situations like these, it’s best to still file. If you don’t, your fees, interests, and penalties can pile up and you may miss out on any potential refund.
If you are still unable to pay, payment plans with the IRS are available to resolve your tax debt. We recommend getting tax preparation and representation services among the many tax accounting firms in Texas to help you.
- Audit problems
From missing receipts to prove deductions, IRS claims on earnings you did not report, to incorrect audit reports, receiving notice, and then undergoing audit can be downright scary.
Most of your audit problems can be addressed by filing for affidavits to prove deductions and/or providing proof of your income, appealing the audit results, and filing a Tax Court petition, among others. However, it’s best to have a provider of accounting and bookkeeping services to ensure you have an expert opinion when working with the necessary documentation.