• October 3, 2017
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The IRS is a difficult master that takes every instance of tax default very seriously. It levies heavy penalties on the tax offenders to set a precedence that discourages taxpayers from defaulting on their outstanding taxes. The sad part about paying a penalty is that often these penalties could have been easily avoided if we a little more aware and strictly adhered to the deadlines. Let’s see what are some of the most common IRS penalties that can easily be avoided.

1. Penalty for Mathematical Errors

Math tests have given me several sleepless nights during my school days. When I graduated, I was thankful thinking Math would not bother me anymore. But little did I know that even the smallest of mathematical errors when calculating my tax dues would lead to heavy penalties from the IRS. If you too aren’t good with calculations, the only way out is to hire a tax expert to do the calculations to file your returns. You may also use an online tax calculator to calculate the exact tax you owe to the IRS.

2. Penalty for Late Tax Filing

Your partner may forgive you for forgetting their birthday or your anniversary; the IRS, however, is not very forgiving when it comes to late tax payments. If you are not too good with dates, then you may want to circle the last date for filing the taxes in red. In case you have a genuine reason for not being able to file a tax on time, then request the IRS for an extension. By being a little sincere, you can save a tax penalty that’s as high as 25 percent of your tax bill.

3. Requesting Deductions for Charitable Donations that Don’t Qualify

Not all charitable donations qualify for tax exemption. To avoid getting denied a deduction request, make sure that the trust or organization you are donating to is qualified for tax exemptions. Your job, however, does not end there; you also need to make a list of the items you donated and their value. For example, if you donate clothes or some other used goods to a charitable, then you must get an itemized slip from that organization, with the list of items you donated and their condition.

4. Home Office Deduction Penalties

People who work out of their home or use their home for office or business purpose qualify for a home office deduction. The only exception is that one must use a portion of their home exclusively and regularly for their business. Some of the exceptions to the exclusive-use policy are the daycare or babysitting services that you provide from your home. By adhering to the guidelines of ‘exclusive and regular’ use, and claiming deduction for the exact area of your home that you use for business, you can easily avoid any home office deduction penalty.

Avoid a Potential IRS Penalty

Taxation is one of the most complicated ‘things-to-deal-with’ for a common man. If you are not good at calculations or do not have the time to deal with the complications involved in filing a tax return, hire a professional tax attorney who will not just help you file your tax returns, but will also help you avoid a potential IRS penalty. If you are looking for an IRS tax attorney in Dallas or nearby areas, get in touch with us at The Law Offices of Nick Nemeth. To get in touch simply call (972) 426-2553 or fill out our contact form.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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