5 Important Tips To Avoid Tax Problems with the IRS

Avoid Tax Problems with The Law Offices of Nick Nemeth

Nobody wants to lock horns with the IRS as it can not just cause a lot of stress, but can also lead to severe consequences such as wage garnishment, or even jail. But, instead of getting intimidated by the IRS, the best thing to do is to avoid the pitfalls that can lead to such consequences. Lets us take a look.

1.  Make sure you file your tax return on time

One of the most common reasons for taxpayers ending up on the wrong side is that they do not file their returns on time. The first step to avoiding a tax problem is to file your return on time. It is important because a late filing may not just attract a late fee and penalty, but it may also lead to an audit.

2.   Simply report what is true

When filing your taxes, do not lie to the IRS as it has all the means to find out what you exactly owe to the IRS. Do not make any wrong claims such as claiming the wrong number of dependants, or filing a return claim that your spouse already filed.

3. Do not list too many itemized deductions

If you were planning to claim half of your income in itemized deductions, make sure you do not do that. Chances are that if you go overboard with your listing, then the IRS may choose to audit your file, as it is a red flag for the IRS.

4. Choose the right form 1040 type

There are three types of 1040 form – Form 1040, Form 1040A and Form 1040EZ. Make sure you choose the right form 1040 type depending upon your specific tax situation.  Besides these three regular forms for resident individuals there are other forms for non residents too. For example – Form 1040NR and Form 1040NR-EZ.

5. Pay charitable organizations by check

Believe it or not, but the IRS has a statistical model of the expected charitable donations that they believe taxpayers from different income brackets can make. So, let us say if you make a donation that is more than what the IRS would have expected from a taxpayer with your kind of income, it is important that you make the contribution by check to have a proof of your contribution.

Last but most important!

Hire a tax law attorney to avoid any errors on your annual tax filings. Having said that, the team at The Law office of Nick Nemeth in Dallas, servicing Fort Worth, Houston, and surrounding areas can help you with your IRS tax problems. Our IRS tax attorneys have helped thousands of taxpayers get a solution for their complicated ta problems. Do not hesitate to get in touch for a free consultation, call our office at (972) 627-4580 .