Taxes are something everyone dreads every single year. It’s complicated, there are too many numbers to sort out, and it can be difficult to ensure that you’ve used all the right forms.
Instead of burying your head in the sand, there are some tips you can use to stay calm during the tax season so that you can get everything taken care of. Here’s how you start conquering any tax problem you may face.
Missing the Deadline
There’s always the fear that you’re going to miss the deadline for filing and paying your taxes, which could result in prison time. The worst thing you can do is procrastinate for too long. If you are worried about missing the deadline, all you have to do is file for an automatic extension. This gives you extra time to get your affairs in order, and you can provide the IRS with a good faith estimate of what you think your taxes are.
If you’re interested in this kind of solution, you should seek the advice of tax attorneys who are capable of handling penalty abatements to help you out.
Fearing an Audit
Audits are mostly random, but they can be incredibly terrifying since almost every asset is going to be examined. However, the chances of being audited, firstly, are extremely low. Secondly, the majority of audits are done by mail.
In the event that a field audit is conducted, you shouldn’t have anything to fear if you have good record keeping. However, for peace of mind, it would beneficial to seek the council of a CPA to keep you on the right track.
The Fear of Making a Mistake
Many people believe that if they make a mistake on their taxes, it amounts to automatic jail time or penalty fees. The easiest solution to this problem is that you shouldn’t do your taxes by yourself. Hiring a CPA may be a little expensive for some people, but there is tax software out there to help you through the process if you really fear making a mistake. And a computer program is more likely to catch your math mistakes.
Fear of Not Having the Right Paperwork
There are a lot of forms to consider when it comes to paying taxes. They’re labelled by numbers, which makes it even more confusing, so getting the wrong form can be a real fear. So what’s the best way to get rid of this anxiety? Keep all of your documents for the year in one place so that you can fill out the paperwork properly.
Even something as simple as a shoebox is enough. Collect together all of your W-2 statements, bank and credit card statements, cancelled checks, 1099 forms, invoices and receipts that you can add together and compile into your tax forms for the year.
It’s a struggle to get through your taxes every year, but by keeping a straight head on your shoulders, you’ll be able to weather through it, no problem. Just stay organized and allow yourself to get help if you really think you need it.
