This is the time of year that tax attorneys and accountants ramp up their work. As the deadline in April approaches, everyone has questions.
From CEOs to delivery truck drivers, taxes affect everybody, and there is only so much a person can know without devoting their entire life to tax law. However, there are still many questions that people have that have simple answers, such as:
Will I be audited?
There is absolutely no guarantee that a person will or will not face an IRS audit. For a few years, audit chances have gone down, but lower chances do not mean a zero chance of an audit. The best possible advice anyone will give you is to pay close attention to your paperwork and only claim what you can prove.
What happens if I miss the filing deadline?
Missing the tax filing deadline happens, but there is good news for a vast number of people. If the IRS owes you a refund, filing late won’t matter. You will not receive a penalty. If you tend to owe the IRS taxes, however, there may be penalties involved.
What do I do if I make a mistake?
When a person makes a mistake, the IRS or the Illinois Department of Revenue will get directly in touch with them and explain what they need to do. If it was an error on income from another state, it might require speaking with the taxation department of that state. And despite what many people may think, these departments are quite easy to work with to resolve minor errors.
What do I do about back taxes?
Back taxes, unpaid taxes from previous years, need to be resolved properly and in coordination with the IRS. You may need to engage an attorney to assist in negotiating a settlement or payment plan. It is vital to have caution in these cases since a misstep or incorrect strategy can have drastic consequences.
Help is available.
No tax issue is irresolvable. At the end of the day, professional, thoughtful, experienced tax law representation can help you through most of the intimidating parts of tax season.