Today TaxMama decides to reduce your tax anxiety. Here are five ways to reduce your daily, monthly or annual tax stress.
1) If you get an audit notice, don’t lose sleep with worry. Organize all your records and bank statements. If you never did your bookkeeping, do it now. You’ll find more deductions than you reported when you estimated your expenses. Believe me, it practically always happens that way.
2) IRS is after you for back taxes? Do you know how many different ways you have of paying them? Or of getting out of them? Between credit cards, installment agreements and offers in compromise, just about anyone can work something out with today’s IRS – without having your wages or bank account grabbed.
3) You owe so much money that you’ll never be able to pay the taxes? And you’re just getting in deeper every year? OK, take a deep breath. With the help of either an offer in compromise or bankruptcy, you can end the agony. And yes, you can discharge taxes in bankruptcy – if you do it right.
4) You just got a notice from IRS saying there’s a mistake on your tax return. Don’t fret. IRS may be telling you that you have a bigger refund because you didn’t include one of your payments. If not, odds are, IRS is wrong. Read the information carefully, or have your tax pro review it. IRS tries to match up information in their computers with your tax return. Sometimes, you’ve put the information they’re looking for on another line or another page – and their computers couldn’t find it. Usually, it’s easy to resolve.
5) The biggest source of tax anxiety? Perfectionism. No, my friend, you don’t have to be perfect. IRS will NOT put you in jail if you make an error. They might charge you a little bit more money. But that’s all you have to worry about. And if you just can’t get all the information you need to file on time, guesstimate. YES. Make a reasonable guess at the correct information. If you’re wrong, you have three years to amend the return with the correct information. But, whatever you do,
don’t hold off filing altogether because you just can’t get it right.
And remember, you can find answers to all kinds of questions about all your tax problems, fears, and other tax issues, free. Where? Where else? At www.TaxMama.com.[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
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