How Tax Preparation Prevents Disaster
- May 18, 2018
- Posted by: jd-admin
- Category: Taxes
Hiring a tax preparation specialist in Austin doesn’t just help with the major headaches, such as keeping you and yours safe from the penalties associated with not paying your taxes, or improperly filing them. It also helps you save money, today and well into the future.
What Kind of Disaster Can Improperly Handled Taxes Result In?
Filing your taxes incorrectly is different than not filing taxes in the first place, or refusing to pay taxes. Once the IRS puts the spotlight on your financials, you will have to do your best to show that you thought you were complying with the tax standards as opposed to trying to hide income or misrepresent income and deductions in order to pay less taxes.
The first thing the IRS will determine is how much back tax you owe. Depending on the specifics of your case, there are several ways you can be penalized. Well before we talk about garnished wages, potential jail time, or seizure of property, the more common issues people face are:
Interest on Taxes: On top of the taxes you owe from past filings, the IRS uses a formula to calculate interest that you are responsible for in addition to your original tax bill.
Penalties: Additional penalties may be added depending on the amount owed and the time frame (how long have you not paid these taxes).
The original amount owed may have felt like a huge burden- factor in these additional costs, and it may feel impossible to get your head above water. If you don’t have the money to catch up on your taxes, additional steps may be taken to force you to pay, including garnishing your wages, property seizure, or imprisonment.
All of this can be avoided in the first place by hiring tax experts to help manage your taxes. In fact, even if you are already under the microscope of the IRS, tax preparation is vital to prove to the IRS that you are doing everything in your power to do it right, and resolve the issues.
How Does Using Professional Tax Preparation Services Help Prevent Disaster?
It’s important to look at this from two different perspectives: the short-term and the long-term. In fact, it’s not just about preventing disaster- there are many benefits to hiring a tax specialist.
In the Short-Term
For individuals and small businesses alike, hemorrhaging money for no good reason is absolutely a disaster. With a little help from your local tax preparation expert, you’ll find that their expertise helps to you save money. Tax laws are constantly in flux and it’s very challenging for any individual to stay on top of all of the changes happening. Hiring a tax expert means that you are paying for their fresh knowledge of the tax code and they will use that knowledge to make sure you are paying exactly what you ought to, instead of overpaying, which is sadly so often the case.
In the Long-Term
Individuals and small businesses try to do the right thing by filing and paying their taxes year after year, but then they come to find out that they have been doing it incorrectly since the beginning. Once audited, all these mistakes come to light and, because so much time has passed, the situation quickly evolves into a disaster as they struggle to pay.
Using tax preparation services all along the way will help to ensure that even if you were to be audited for some reason down the line, your files will be in excellent shape and it’s easy to prove that you have not only done nothing wrong- you’ve done your duty.
Don’t wait until it’s a tax disaster. Contact us on the web or call our team of tax experts at 512-442-3055 for a free consultation so we can help you save money, while keeping you and yours safe from the prying eyes of the IRS.