Things You Should Know About Taxes and Tax Problems- Find Out!
Taxes provide revenue to the government to finance all public sectors in all levels. U.S taxation is very complicated. In fact, the U.S official tax regulations are approximately composed of 8 million words. Because regulations and laws are amended from time to time taxes will become even more complex and continue to mount in words. Perhaps because of its complexity, the word \”tax\” always comes forth with problems. Here are some points to ponder when dealing with taxes and tax problems:
Knowing History, just good to know
In the ancient years, Americans dealt with no taxes at all. The government revenues had to be collected from tariffs on certain items like alcohol, sugar, carriages, tobacco, legal documents and so on. The legal obligation to pay taxes came only after the Civil War. The disastrous war caused the nation massive amounts of debts. Thus the Congress passed the Revenue Act of 1861. The act imposed 3 percent cut for taxes to people who had incomes of $800 and rising to 5 percent for $10,000 incomes. The laws on taxes were amended from its historic root up to the present time. Additionally, even the filing deadline has always been revolutionary. March 1st was the original deadline for filing tax returns. The date was forwarded to March 15th, and now the deadline has finally been set to April 15th.
Knowing Options for Filing Tax Returns
There are three options for filing a tax return. (1) Electronic filing is considered to be the safest and fastest mode of payment. The service has been available to all taxpayers since 1990 and it has accommodated more than one billion tax returns filed. But before you can avail the services of e-filing, taxpayers must have their taxes done by a tax preparer or using tax software. (2) Credit card payment can be done via phone or the internet transaction. The IRS does not store or record card numbers to ensure taxpayer\’s security of accounts. Like e-filing, card payment is also a hassle-free transaction. (3) Paper filing is the best option if you have fairly simple tax return. Since not all taxpayers are eligible for e-filing and credit card payment, taxpayers resort to this traditional mode of filing tax return. Make sure though to provide accurate data when paper filing.
Knowing the IRS Audit
Failure to file tax returns and irregularities on filing information will trigger the IRS to audit your account. The IRS will notify the individual through an official letter indicating which type of audit the IRS is conducting and what documents shall be prepared. After the audit process, the IRS will either declare the taxpayer free from legal debts or penalize the latter for specific violation. However, the law entitles taxpayers to request an appeal concerning the audit decision. If tax problems are encountered, a 30 day allowance to file an appeal directly to the IRS is given to the taxpayer and can extend to 90 days for filing an appeal to the U.S. Tax Court.
Knowing the Taxpayers Bill of Rights
If you encounter tax problems do not feel too intimidated with the audit process. Taxes are complicated enough. Knowing your rights as a taxpayer will help you face the tax collectors with ease and confidence. Taxpayer\’s rights include: right to ask for an explanation, right to be represented at an IRS hearing, and the right to provide only the necessary documents which the IRS asks for.
Because taxes and tax problems intertwined too often, knowing your options will at least spare you from the compound division of the IRS.
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Author Bio: Seomul Evans is SEO consultant specializing in Attorney Marketing. Visit the sites to learn more about Dallas Law Firm and Dallas Estate Tax Attorney.
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