Tax laws in the United States frequently change from year to year. Issues like the cost per mile someone can claim or the credit you receive for each dependent may change to reflect current costs and the modern economy. It’s important for all taxpayers to understand their obligations for filing and paying taxes, as well as all the permissible deductions and credits that can limit how much they pay.
Broader reform to tax laws can also have profound implications for the tax obligations of the average worker. The 2018 tax season will likely leave some people in a difficult position. Some experts believe that a significant number of Americans are not withholding adequate money from their paychecks to cover the changes in taxes, especially at the state and local levels.
These individuals may find that they have a tax liability at the end of the year. Even if your employer withholds your taxes on your behalf, you should still end up owing money. Other individuals, such as those who file their own taxes, could make mistakes based on information from previous years that leaves them vulnerable to criminal charges or action from the Internal Revenue Service.
Paying your taxes in full and on time is critical
Regardless of what else is going on in your life, the money that the government expects in taxes must be paid in a timely manner. Failing to pay your taxes on time and in full can have significant financial consequences. First, you could face an audit. Beyond that, there is always the potential for criminal charges of tax fraud or even tax evasion.
Anyone convicted of those offenses or found to owe money to the IRS could face garnishment of their wages, seizure of their real property and other financial consequences. Making every effort to pay your taxes in full is the best decision.
However, people can make mistakes regarding both withholding and filing of their taxes. When that happens, it may be necessary to talk with an attorney who understands tax law. You may have options, such as a repayment schedule, which can make it easier to handle tax issues.
The right advice can save you money and risk
While financial topics are popular for both radio and television programming, you should not get legal and financial advice from individuals who are effectively entertainers. Talking with someone who actually understands the law and the financial obligations of federal and state income taxes is a better decision then deferring to celebrities and financial entertainers.
Whether you worry about unmet tax obligations or have already received a letter from the IRS, the right legal help can make correcting the situation and moving on much easier.