When tax season comes around, both individuals and businesses worry about the possibility of an audit from the Internal Revenue Service. Even if you think you did everything correctly, everyone makes mistakes, which can result in harsh penalties. However, audits are extremely rare. Some reports estimate that only 1.1 percent of people who file end up with an audit.
Few things are as financially unnerving to Georgia taxpayers as having a delinquent tax bill to the IRS. Even worse, perhaps, is knowing one does not have the ability to pay it, even with a payment plan.
You might have filled out your tax forms perfectly, but at least one red flag raises your chances of an IRS audit. Or perhaps you are not sure whether to record something in case it turns out to be a red flag and you have lost the documentation backing it up.
A growing number of people are making a living as freelancers. In fact, a report from Forbes showed that freelancers currently make up at least 35 percent of the American workforce, and the total number of freelancers has risen to 55 million people.
Tax penalties can be an unwelcome surprise to anyone who made an honest mistake when filling out their tax forms. In 2015, the Internal Revenue Service reported that it collected $12.4 billion from Americans in penalties.
A common saying is that the only two things you can count on in life are death and taxes. While this is true, you should not pay more than the law requires when it comes to your personal taxes. Many filers miss exemptions and deductions because tax law is so complicated, and they end up paying more than they should.