If you haven’t figured it out from every U.S. adult sweating profusely over their W-2s, receipts, and calculators, April 17 is Tax Day this year. But what does it take to get Tax Day right?
Here are six things to do before the April 17 deadline rolls around:
- File your taxes: Tax Day is all about – you guessed it – having your taxes filed to the IRS and your state. Ensure you’ve received all paperwork needed to complete tax returns, including W-2s from employers, social security information, and more. Enlist the help of a tax preparer to make sure you’re in compliance with IRS and state requirements.
- Fund your IRA or Roth IRA: You still have time to contribute to your retirement accounts for deduction write-offs – woohoo! After the April tax deadline, you won’t be able to take advantage of this benefit for the 2017 tax year.
- Businesses: File your Q1 estimated taxes for 2018: April’s Tax Day is a double whammy for business owners as Q1 estimated tax payments and individual tax returns are due. You don’t want to start off the year on the wrong foot with the IRS – they’ll remember your compliance if you ever need future tax debt resolution.
- File for an extension if you need it: No way you’re getting your tax forms submitted by Tax Day? You can apply for a filing extension that will give you two extra months to get things taken care of. If you don’t file for a needed extension, you’ll be on the hook for Failure to File penalty plus interest. And remember: There is no such thing as an extension on paying tax debt.
- Request an IRS payment plan if you can’t pay: Financial hardship may prevent you from affording tax payments this year. If this is the case, request an IRS payment plan to get the ball rolling and avoid things from getting worse. If no effort is made on your part to resolve the problem, the IRS will begin to charge penalties and interest on the amount owed, even if there are no collection actions like liens and levies.
- Get help from a tax professional: Make a sincere effort to get tax debt resolution and the IRS will cut you some slack. Get help from a tax relief company like Tax Defense Network who can work with the IRS on your behalf, helping you learn your options for getting taxes back on track.
So, are you ready for Tax Day?
Call Tax Defense Network for a free consultation on filing returns, resolving tax issues, or handling business taxes at 877-588-1098.
Tax season is (quickly) coming to a close – have you filed yet?
Taxpayers have until April 17, 2018 to file their tax return, but waiting until the last minute can make post-deadline season a nightmare. Even when complying with tax laws, having less time to prepare and file the return can create serious beef with the IRS. Here are five reasons to file your taxes sooner than later this season:
- Prevent ID theft: Identity theft is real, and the IRS can’t shield every taxpayer from falling prey. Once a fraudulent tax return in your name reaches the IRS, they may accept it. To minimize the risk of a criminal taking your identity and money, file your return as early in the season as possible. The IRS won’t accept any other return filed in your name by scammers.
- Get an early tax refund: The IRS issued more than $426 billion in refunds for the 2016 fiscal year – and in this case, the early bird gets the worm. The sooner you file, the sooner you get your refund money and can spend it. Hello, new shoes.
- Avoid IRS penalties: If you file your tax return a few days before the April deadline, your yearly tax duty isn’t necessarily over. The IRS may send you a notice that you owe more than you paid, usually due to mistakes on your tax forms. If you have to file an amended return and miss the filing deadline, the IRS begins to charge penalties and interest on the taxes due. And learning you owe more – and then even more – is no fun.
- Make fewer mistakes: With adequate time to prepare and review your tax return, you minimize the chance of errors (and penalties). If you’re filing in a rush, you could miss a credit or deduction that could save you hundreds in taxes. Simple errors can also lead to an audit.
- Have more time for expert help: The longer you wait, the narrower your filing options become. Many of the CPAs in your area may be already booked, leaving you with fewer choices. And doing it alone can sometimes seem impossible.
Avoid the stress of late filing by working with a tax professional you trust, as soon as you can. The team at Tax Defense Network can file even the most complicated of returns, getting you the help you need in a timely manner.
It’s tax season. Did you just shiver?
Filing tax returns on your own can be – to put it lightly – a nightmare. Luckily, you can hire a tax preparer to do it all for you.
A tax professional will not only take care of the calculations and administrative tasks needed for filing a return on time, but is well-versed in tax reform laws, ways to catch tax breaks, and deadlines. Sounds great – but it can be easy to fall for the lofty promises of fraudulent preparers and compromise your financial information. Check for these six qualities to make sure your tax pro is qualified and the best for you:
1. A Preparer Tax Identification Number (PTIN): Anyone who prepares or assists in preparing federal tax returns for compensation is required to have a valid Preparer Tax Identification Number (PTIN). A PTIN helps to track a return preparer in case of fraud, so make this a priority on your checklist.
2. Qualifications and creds: Don’t know where to look for a tax pro? Qualified tax preparers with a PTIN can be found in the IRS Directory of Federal Tax Return Preparers. In this directory, you can also search through professional credentials (e.g. Enrolled Agents and Attorneys) or those who have obtained an Annual Filing Season Program Record of Completion from the IRS.
3. A good track record: Even if you choose from the IRS directory, check the preparer’s background, history, and reputation before moving forward. Here are some reputable sites to do conduct that research:
4. Fee structure (and amounts): Scammers often base their service fee on a percentage of the client’s refund. To increase their fee, they manipulate information on your tax return for a bigger refund. That spells trouble for you down the road with the IRS. Avoid return preparers who use this refund-based rate or charge a hidden fee after being hired. Trust your instincts – if it seems too good to be true, it is. By signing the tax return, you take full responsibility for the information reported.
5. Reliable review process: Your tax preparer must include their PTIN and sign the return before handing it over to you. It’s important that you review your tax return for accuracy and alert the preparer of any possible mistakes. Only sign your return when you are happy with the information reported. If you’re expecting a refund, check the routing and bank account number on the completed return to ensure that it’ll go directly to your bank account (and not the preparer’s).
6. E-filing option: For safe processing of your tax return, make sure the preparer offers e-filing, or the ability to submit online. This will help to limit your exposure to identity theft, as the IRS will alert you if a second return has been filing under your SSN.
Now that you know where to start, it’s time to get hiring and filing. The team at Tax Defense Network knows how to process even the most complicated of individual and business tax returns. All you have to do is provide the appropriate documentation and financial information to your dedicated preparer while we do all the heavy lifting.
Get started today with a free consultation – call 877-588-1098
Taxpayers have until April 18, 2016 to file their tax return, but delaying the process can create problems. Even when complying with tax laws, having less time to prepare and file the return can create issues with the IRS. Here are five reasons why you should not procrastinate in filing your return:
1. Tax Identity Theft
According to a report by the Government Accountability Office, the IRS estimated that it prevented $24.2 billion in fraudulent identity theft refunds in 2013. However, the tax agency paid out $5.8 billion in what was later determined to be fraudulent refunds.
Identity theft is real and the IRS cannot shield every taxpayer from falling prey. Once a fraudulent tax return reaches the IRS, there is a chance that it will be accepted. Therefore, to minimize the risk, taxpayers should file their returns as early in the season as possible. After your return has reached the IRS, they will not accept any other return filed in your name by scammers.
2. Early Tax Refund
Almost 75% of Americans receive a tax refund each year. By filing your return early, you can receive your refund sooner. The sooner you receive it, the earlier you can invest or spend your money.
3. Owing More Than You Paid
If you file your tax return a few days before April 18, you may believe that your yearly tax duty is over. There is always a chance, though, that you will receive an IRS notice informing you that you owe more than you paid.
Filing in haste can cause mistakes that can only be corrected by filing an amended return. If you miss the filing deadline, the IRS begins to charge penalties and interest on the taxes due.
4. Sufficient Time, Less Mistakes
With adequate time to prepare and review your tax return, you minimize the chance for errors. If you’re filing in a rush, you could miss a credit or deduction that could save you hundreds in taxes. Simple errors can also lead to an audit.
5. Availability of Return Preparers
The longer you wait, the narrower your filing options become. Many of the CPAs in your area may be already booked, leaving you with fewer choices. There may be long lines forming the closer the filing deadline gets.
To help avoid refund fraud, mistakes on your return, and unnecessary stress, it is preferable to file weeks before the filing deadline. Procrastination where taxes are concerned can cause both stress and loss of money.