A Rundown of Common Tax Problems Faced by Taxpayers
Nothing is more head churning than having to deal with tax issues, right? If dealing with tax season is hard enough, forgetting to comply with some guidelines, missing the deadlines, and such can bring in more problems than you anticipated.
For this reason, many tax experts recommend that you fully understand the tax guidelines and work with business tax filing services to avoid any issues, penalties, and alike. If there's any better way to learn tax issues, it's this—understanding the different tax problems that taxpayers face.
With this information, you'll be able to avoid common mishaps and blunders, allowing you to have a smoother tax season process, dodging a mistake or two along the way. So, if you're ready to dive deeper into the common taxpayer problems, read on and start taking notes—no one wants to have a tax issue up their sleeve!
Problem #1: "I am being penalized by the IRS due to late filing, late payment, or inaccurate tax return."
You may experience a major problem being penalized due to late filing, late payment, or inaccurate tax returns. It may come as a surprise, but millions of taxpayers face the penalties of late filing, late payment, or inaccuracies on their tax returns. With that said, you'd be surprised to know that there are about 29.5 million taxpayers who experience this.
The number is huge because there are about 150 different types of IRS penalties, 80% of which are individual taxpayers. Unfortunately, the most common penalty is failure to pay, about 96% of this number.
Problem #2: "I owe the IRS payment, but I cannot pay it."
In 2019, about 20.1 million individuals could not pay their taxes. With that, there's about $539 billion owed to the US Treasury, and 84 percent of those are individual taxpayers.
For this reason, it's worth getting accounting services to ensure that you have a budget that will help pay for your taxes. Not paying your taxes can turn into a bigger problem when your tax penalties accumulate.
Problem #3: "I have not filed my tax return."
Many taxpayers are guilty of forgoing filing their tax returns as well. It's true about 10.6 million individual US taxpayers, and 50.5 million businesses have not filed their tax returns. Again, this may cause you to face penalties, which is why it's essential to get help from tax filing services. It will help you file your tax returns on time and ensure that you minimize tax penalties.
Problem #4: "I am at the risk of the IRS audit."
There are about 1.1 taxpayers who are at risk of getting an IRS audit. This is because they don't file the right amount to the IRS, missing payment, or other issues. Tax liens often hit hard. Anyone who has gotten the IRS tax lien has limited their finances, unable to use their assets to secure loans or even access credit due to the tax lien. About 5.5 million individual US taxpayers and 14.5 million businesses are under the IRS tax lien.
The Bottom Line: It's Worth Getting Accounting Services to Ensure You Dodge These Tax Problems
While we've listed some of the most common tax problems that taxpayers can encounter, you can avoid these problems by getting accounting services. As you can see, it's worth getting accounting services to ensure that you don't face the above tax problems. Trust us—there's nothing worse than having to pay your taxes with some penalties and notices on the side.
How Can We Help You?
There's nothing more excruciating than having to work on your taxes alone, right? Whether you're an individual taxpayer or you run a business, taxes are a crucial part of your life. With that said, it's worth getting accounting services in Denver you can trust.
Tottax is a tax and accounting agency that assists small businesses and their owners in tackling their accounting issues. With our personalized strategies and consulting services, we're able to meet your needs and goals.
If you need help with tax filing and planning, reach out to us today!