No one likes paying taxes, but it’s part of being a good citizen. And they’re required by law. One of the primary goals when paying the IRS is to stay out of legal trouble when filing. Here are four ways to do just that.
#1: File Your Taxes on Time
Many individuals and businesses need a little grace period when it comes to tax time, which is what extensions are for. But if you don’t file your taxes on time and don’t file for an extension, you could find yourself in trouble. You can face not only penalties, but it could put up a red flag when it comes time for audits.
#2: Don’t Sign Off on Errors
Errors happen, but if you have someone else do your taxes and then you blindly sign off on them without checking their numbers, you are the one left liable. Don’t let yourself get into legal trouble because of someone else’s mistakes. Check the work before you sign.
#3: Don’t Use the Wrong Forms
The wrong forms could put you in a world of hurt, even if you use them unintentionally. Be careful when filing that you use the right forms for your financial situation.
#4: Don’t Claim What You’re Not Eligible For
Claiming dependents that don’t qualify as dependents, taking deductions that you aren’t eligible for, and writing off business expenses that don’t properly qualify are great ways to raise red flags. If you get audited, and they find that you made those claims on purpose, you could be in for a legal battle.
If you find yourself in legal trouble when filing your taxes, there is help. Contact the tax team at McCutchen McLean, LLC for legal representation that can help you get out from under the mess.