08 Mar Tax Troubles – What’s the Worst That Can Happen?
All of us would love it if we didn’t have to pay our taxes, and some even attempt that at some point. However, that rarely ends up being a positive experience. What’s worse, it often leads to some disastrous consequences.
We are well aware that in some cases, many of us can’t pay our taxes or we run late with them.
With that in mind, let’s take a look at the worst things that can happen in such situations or the worst tax troubles you could ever experience.
Simple Mistakes That Have Major Consequences
We all make mistakes from time to time – we are only humans after all. However, an error when doing taxes can have some detrimental effects.
If you were only to misspell something or put down something in the wrong place, you would end up having to redo the reports all again and waste time on your taxes.
It is only a nuisance, but if you were to make a bigger mistake, it could easily interpret as an attempt at tax fraud. The IRS can construe such errors in that way from time to time.
The same thing goes with calculations, especially the ones for your total income. If you report a different salary than you have, you can get into serious problems with the IRS: That makes the utilization of good tax software essential. However, if you still end up into some trouble, you’ll be much better off with hiring the services of a tax resolution specialist.
Most mistakes are considered to be exactly that by the IRS. However, they can view some more serious errors as an attempt at fraud. That’s why you need to be careful with your total income. You need to make sure that you are not underreporting it. Many people assume that they don’t have to pay taxes for some things, but the opposite is true when a lot of specific items are in question. If you receive any income for which you are not sure you should pay taxes, you need to check what you have to do.
The Worst Thing That Can Happen if You Don’t Pay Your Taxes
Many things can happen if you don’t pay your taxes, but one thing is certain – the IRS will always make sure they get what they’re owed.
In most cases, if you fail to pay, you will suffer some penalties. These often come coupled with interest that typically is between 3% and 6%.
However, the seriousness of this might fade away once you take into account that you can also get your property seized or end up in jail.
In some instances, you can end up with the IRS seizing your home, your car, income, or a bank account. As for jail time, it’s rare, but if the IRS feels that your tax behavior is dishonest, they can certainly pursue a sentence.
It all depends upon the person; each of these can seem like the worst type of tax troubles. The only thing that we know for sure is that you don’t have to deal with the IRS yourself, no matter what happens. Contact us at Golden Tax Relief whenever you want to, and we can help you with your IRS problems.