Reasons People Get Into Trouble With the IRS
You don’t want to mess with the Internal Revenue Service. One small mix-up when filing your taxes can cost you big.
For example, in recent years the IRS has increased its filing of levies, liens and wage garnishments. In fact, in recent time the IRS has filed 2.5 million levies in one year.
An IRS levy permits the legal seizure of your property to satisfy a tax debt. It can garnish wages, take money in your bank or other financial account, seize and sell your vehicle(s), real estate and other personal property.
If you receive an IRS bill titled Final Notice of Intent to Levy and Notice of Your Right to A Hearing, contact SAMSO right away, we will assist and guide you through the process, DO NOT IGNORE! The experts at SAMSO rdsamso.com , one of the nation’s expert in tax filing, offer this list of common ways people get into trouble with the IRS.
1. Filing too many exemptions. An exemption gives you a major tax deduction, and some taxpayers can’t resist the temptation to report more exemptions than they’re actually entitled to.
You can only claim exemptions for yourself, a spouse and for all “dependents.” Dependents have to meet specific criteria, however, make sure you follow the IRS guidelines so that you don’t mistakenly file an extra exemption or purposely file exemption to reduce your taxes, and increase your refund.
2. Being unaware of taxes levied for early withdrawal from certain retirement plans. If you withdraw from a retirement fund such as a 401(k) or IRA before you’re 59 1/2, you may face a 10 percent federal penalty on your investments, as well as a state penalty and an income tax on the money withdrawn.
3. Not paying enough taxes when self-employed. Many people who own their own businesses don’t know how much they have to pay in taxes. The tax structure for a self-employed person – what to pay, how to pay and what can be deducted – is decidedly complex, so it’s easy to become confused.
4. Not paying taxes on winnings. It is necessary to report all gambling winnings, including winnings from lotteries, casinos and horse races, as income.
For people who are in trouble with the IRS, there are various programs available that can provide debt relief if a taxpayer qualifies. SAMSO helps its clients determine if they meet the requirements for one of these IRS programs. Its staff includes a number of tax experts ready and available to assist you. Call us today!
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