Freedomtax’s staff has been offering honest tax relief services for 15 years and we have seen that when you think of someone with a tax debt, you probably imagine that they deliberately let things get that way. They must be lazy or dim witted and a burden on society. However, before you pass any judgment on your fellow man’s plight, take a look at your tax returns and see how far away from the redline you are.
Among the people who pay taxes, a vast majority of the people are good honest and hardworking. However, tax debt isn’t accrued because they are irresponsible. They just lack the means to pay the debt off. With that in mind, here are a few reasons why it is so easy to acquire a tax debt in no time at all:
Small Mistakes in Tax Returns
When filing your tax returns, be sure to go through your work again thoroughly. When filing in your tax returns, any small mistakes or unintended omissions can cost you a lot. With the IRS eager to fill its pockets, these mistakes are looked upon as chances to levy fines or penalties on the person. Sometimes the IRS might even opt to call you to an audit. Not only is that time consuming and costly, you also have to get the attorney who helped you file your taxes or get a new attorney if you feel you need one when confronting the IRS.
Filing after the Deadline
There is a time limit set on when you can file in your tax returns. Although some people do so fairly early, most people make their payments on the very last minute. However, if you’re late in filing, you will be penalized by the IRS. The penalty will raise the amount that you had to pay hence starting a tax debt.
Filing for Non-Payment
The IRS lets you utilize two payment schemes that offer you either the chance to pay your taxes at some other date or you get to pay the taxes in installments. If you opt for installments, you might soon despair of the choice since the IRS still levies an interest rate on all tax amounts. Unfortunately for you the interest rate levied by the IRS is subject to change and is not influenced by the banking interest standard.
Seizure of Assets
At times if the IRS feels it is appropriate, they can seize your assets and regulate your income. However, with an interest being applied to the tax debt amount, you might find it takes longer to pay back the debt. With a limited income and most of it being siphoned off, if you already had a meager income, the remaining amount you receive might not be enough to meet your daily needs and you might find yourself borrowing and acquiring another kind of debt.
The best solution that can be to get your tax returns made with the help of the many tax preparation services offered by different organizations. Though it might be an expensive venture, just think of all the money and trouble it saves you from.
If you require any more information regarding tax returns, tax preparation services and tax debt payments and procedures; please feel free to contact us at 407-344-1012 for more information.