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When the season to file your tax returns comes around, it can be a very stressful time, especially if you’re running a business or company. From fines for failing to file taxes to delays on returns due to misinformation, problems with taxes are easy to make and incredibly costly to resolve. The latest research from Pew Research indicates that 26% of Americans dread filing their tax returns. But then, that doesn’t always have to be the case. Here are 4 common glitches to avoid when filing your tax returns.
Things to avoid when filing your tax returns
Hiring the wrong person
Every year, companies, business owners, and taxpayers usually make the costly mistake of hiring incompetent tax preparers who make errors, commit fraud, mislead them, and even disappear with their tax refunds. It would help if you were doubtful of any tax preparer who gives you promises that you’ll get a certain amount in refunds even before they have reviewed your financials and previous tax returns. Similarly, it would be best if you were suspicious of a preparer who bases their payments on a percentage of your tax refunds.
Failing to file on time
According to the IRS, 20% of Americans fail to file their tax returns on time. This often leads to expensive penalties, along with other stressful tax issues. Additionally, people who fail to file their taxes completely are more likely to make mistakes when filing their returns, which often delays the process and makes it costly. In case you’ve failed to file your taxes in the past, you’ll probably be glad to discover that your unfiled returns can yield credits or refunds toward the upcoming taxes.
Failing to file completely
Even if you can’t afford to pay all your taxes at the moment, it’s essential to ensure you at least file something. There are two ways you can address tax problems and filing issues more affordably. You can file an installation agreement request to outline a payment plan, so you can pay in installments. Keep in mind that there are penalties and interest rates involved, but these are way lower than what you’ll pay if you don’t file at all. Alternatively, you can apply for an automatic extension, which allows you to extend the time to file. While this application gives you an extension, its penalties and interest rates are also lower than failing to file at all.
Making math errors
It would help if you didn’t let a simple tax problem like math errors prevent you from filing your tax returns. Before you submit, ensure that you double-check all the calculations to make sure the math adds up. You can avoid such errors by hiring a professional accounting firm like https://taxfyle.com/ to help you handle complex calculations that are common for companies and businesses.
Whatever happens, it’s essential to ensure that you file your taxes on time and you file them correctly. Even if you still owe a refund, you’ll end up creating more problems for yourself if you don’t file.