When you receive your tax refund A.K.A – a big lump sum of money – how do you plan to use it? Do you first think to save it all? Go on a big trip? Pay off credit cards? Get your pool re-plastered? It’s hard not to start thinking extravagantly on what you could be doing with all of it. Whatever it is, there needs to be a strategy involved so you can make the most of your tax refund. Tax Tiger, an IRS tax attorney in Minneapolis, discovered several ways on how people commonly spend their tax return, but probably shouldn’t. So, if you are one of the 77 percent who received a tax return, here are a few of those ways that you should avoid using that money towards.
Nobody wants to be on the bad side of the Internal Revenue Service. That’s why it’s important to make a huge effort on filling out your taxes correctly and filing them on time. Because taxes are so complicated, here are a five steps you should follow in order to prevent the IRS from coming after you:
1. Simply file your taxes on time
We know this one sounds obvious but people still end up by waiting till the last minute to file their taxes. Don’t procrastinate and get it done! Also, if you end up by owing a lot on your taxes, you can use a tax attorney in San Francisco to help resolve these issues with the IRS.
Do you believe that you are safe from your identity being stolen? A whopping 63 percent of Americans are confident that it could never even happen to them! In reality, the likelihood that identity theft could happen to you is higher than you would think. And when it happens, will you know what to do? Hopefully you’re safe, but fortunately there is a Denver tax lawyer who has the knowledge to help out if it does occur.
Locks and passwords
Security company, IDT911, created a survey that found that people aren’t as worried this year about their taxes being invaded by thieves – and while it’s good for people to feel safe, it’s not good for people to let their guards down to the possibility of identity theft. One statistic even shows that 19 percent (admittedly) don’t have a password protected Wi-Fi network – and this is coming from people who are possibly filing their taxes online.
It can feel scary to put your information out into the world, even when you it’s on an IRS form. And when it comes to your taxes, there are scams out there that want to trick you in order to steal your money. According to the Internal Revenue Service Commissioner John Koskinen stated, “We are working hard to protect taxpayers from identity theft and other scams this filing season. We urge taxpayers to help protect themselves from scams – old and new.” San Diego tax lawyer, Tax Tiger, really wants to make sure you avoid these scams like the plague so we’ve taken 6 big ones that are coming around that the IRS is specifically warning you about.
A Farmer’s life is not an easy one and when it comes to taxes – it feels just as complicated! So Tax Tiger, a tax attorney in Sacramento, wants to make sure all the farmers out there are getting the help they need when it comes to tax resolution assistance. If you are a farmer, managing a farm, or a related field, these are a few good tips to keep in mind so as to not get in trouble with the Internal Revenue Service.
1. Don’t stress over the mess – Insurance has got you covered
If your crops get damaged, the crop insurance you receive still counts as income. It’s important that you report this to the IRS though.
Earlier this month President Barack Obama signed the Fixing America’s Surface Transportation (FAST) Act that will team up the Internal Revenue Service with private debt collection agencies in hopes of receiving payments to past due tax bills and thus helping improve the United State’s economy. Nacsonline.com says the bill itself aims to ”Improve the nation’s infrastructure by providing fiscal certainty to state and local governments, streamlining the environmental review and permitting processes, and improving truck and bus safety.”
The last time something similar to this occurred was in 2006 and it was ultimately a success. A study had found that 96 percent more customers were even satisfied with the collection agencies. Although together the IRS and the collection agencies had brought in revenue of $98 million, Congress stopped it in 2009 because they felt that it was losing money opposed to gaining enough.
It’s December and in one month it will be 2016! But before you have to actually start filing your taxes, take a second to realize that it is the season of giving. In fact, your charitable contributions are not just a great way to give to others, but to yourself as well. By giving to certain charities, you can cut off your tax bill for the upcoming year. But make sure your donation is accepted by the Internal Revenue’s standards otherwise you may not receive any deductions on your taxes. Some qualified organizations may include:
A professional advisor in your area such as a tax attorney in Denver can help you assess your situation.