The IRS can be an intimidating government agency for many people. However, it doesn’t have to be that way. The IRS is actually a very helpful and simple organization if you know what to do and how to handle the various tax problems that arise during your year. However, when you receive notices from the IRS, it can be stressful and confusing to figure out.
This is why it is essential to understand what is happening and the reasons behind IRS notices. In this article, we will discuss five common IRS tax problems and how you can fix them!
Missing Income Tax Returns
If you have not yet filed your income tax return, the IRS will wait for years before starting charging interests. The statute is three years, and if this time frame has passed, it could be difficult to retrieve any missed information because there are more than likely no records left with the company that provided these services in the previous year.
If you find out about missing returns after three years, it would be possible to file an amended tax return form by following instructions from the website or calling customer service at 800-taxes (800-TAXES). You can also send a letter explaining what happened and asking them for leniency.
Getting Notices About Penalties and Interest
Sometimes you receive notices from the IRS about penalties and interest. But if there is a reasonable explanation for why you missed filing your taxes, they are more likely to waive these charges.
Neglecting Tax Planning
If you have neglected tax planning in previous years by not taking advantage of certain deductions or credits available, it may be too late now – but don’t worry!
You can still file an amended return to account for any changes on this year’s income as well as last year’s. This will allow you to get what was owed properly without losing out on opportunities that could benefit your finances even further.
Making Mistakes When Filing Taxes Yourself
The biggest problem with doing taxes yourself is making mistakes when entering information on your income tax forms. This can happen with miscalculations and not understanding the latest updates from the latest policies from the IRS.
In order to avoid this, one of the best things you can do is check your work. Save a copy of your tax form and always double-check before sending it to the IRS – or else you might be missing out on some money!
Missing Out On Certain Tax Credits
In addition, one of the things people do wrong with taxes is not using every available credit they can. This often happens because they don’t know about them, we’re too busy, weren’t eligible for it in previous years but now are, etc. The good news is there’s still time to get these credits back by filing an amended return!
A person who was eligible for the Earned Income Credit (EIC) last year but didn’t claim it, then an amendment will allow them to ensure they get it this year.
If someone is eligible for a tax credit such as the Child Tax Credit or American Opportunity Credit but didn’t claim it, they can file an amendment to get their money back! They just need to itemize deductions and then report all of them on that tax form, including the credits.
Amendments are a great way to take care of any tax problems that have come up. They’re easy, it’s never too late to file an amendment, and you can get money back on previous years’ taxes!