Our staff has been doing income tax preparation services in Kissimmee, Orlando and Hunters Creek for 15 years and we know that if you are responsible for filing the taxes in the family you might have had to deal with tax returns and tax refunds on a regular basis. Most tax systems are usually built around these two requirements.
What is Tax?
Taxes are financial charges that are charged by legal entities, state or functional equivalent of state on individuals. A person’s failure to pay taxes in a timely manner is punishable by law. Taxes are either in the form of direct or indirect taxes in which both require an individual to pay appropriately timed payments to pertinent tax authorities and to submit tax returns at designated times.
A tax authority would need the relevant information to access a person’s tax liability. Such information is included in a tax return which is issued by the state periodically. More specifically tax returns are in the form of forms that are required to file income taxes with the Internal Revenue Service (IRS). Most of them are in the format of work sheets. The income figures that calculate tax liability are to be included in the documents.
Individuals and businesses are required to file tax returns in Kissimmee, Orlando, and Hunters Creek on an annual basis. They can be in the form of wages, capital gains, dividends and interest.
Most businesses also choose to file their taxes at a quarterly rather than annual basis. The reason why is apparent. Such actions help business owners avoid enormous tax bills that have accumulated throughout the year. If a paid tax installment happens to be more than the tax payable as per return a tax payer can claim the extra payment in the form of a tax refund.
As discussed tax payers are entitled to tax refunds if they have somehow managed to pay more than what they had to in income tax to the federal or state government. In fact, since certain tax credits are fully refundable some tax payers might be entitled to a refund as a result even if they owe no taxes.
The state is bound to reimburse an individual if he/she has overpaid on his/her taxes. Most of the time, a tax refund is payable in cash. However there are some tax systems that allow tax payers (who are entitled to tax refunds) to carry their refunds forward in the form of tax credit. The tax payers in question then have the opportunity to claim the refunds from the tax payable during upcoming tax payments.
The authenticity of the information that is included in tax returns is crucial when it comes to determining whether certain tax payers are entitled to receive tax refunds or not. Payers will always prefer to reduce their tax payable and be eligible for refunds. However, the fact that tax authorities are always diligent in maximizing their tax revenue should not be ignored either. Needless to say, ensuring that your tax returns are reviewed and filed in a timely manner will ensure that you never have to suffer financially in the future.
For more information about tax returns in Kissimmee, Orlando, and Hunters Creek, please contact us at 407-344-1012. God Bless.