Taxes are a present day reality, though being creations of the past that have stubbornly enforced themselves on our current lives.
Because of the many consequences associated with tax-particularly tax evasion-it becomes very important to respect the IRS debt collection regulations concerning dates and monetary expectations.
It is for this reason that advice concerning taxes be sought after.
It makes a world of difference, so continue reading if you would like to find out more.
A number of documents are always required for the filing of income tax.
One thing for certain is that you will need to have a W-2 form, which you should expect to receive from your employer by the 31st of January.
Such a form will contain details about your earnings for the previous financial year, plus of course important information about any deductions that may have been made against your salary.
In the event of you having a checking or savings account that appreciates interest, such a financial institution should send you the 1099 form which will have details relating to such interest earned.
Both of these forms are very important because without them you might end up being accused of tax evasion even though you did not have such an intention.
Be certain of which filing method you opt for.
Under normal circumstances it is recommended that you file for tax electronically using an e-file instead of the paper method.
Doing this somewhat guarantees you of a quick refund, if at all you qualify for one.
Tax returns can be at your doorstep in about 10 days if you use an e-file.
When using the e-file and earning at least $55,000 per year, there is specific software you can easily use for free for the preparation of your documents.
After the necessary documents have been attached to your income tax file ensure you double check all entries and figures.
Simply imputing a digit or two off the correct mark can have dire consequences.
Delays on tax returns are somewhat of a distinct possibility for people who make mistakes during the entry of information.
In addition to experiencing delays on tax returns you might also receive an incorrect lump sum that has obviously been affected by incorrectly inputted figures.
So ensure your social security numbers are correct, as well as making sure all calculations are done using a calculator.
Several steep penalties are forever on standby for individuals who think they can get away with not filing for income tax.
Believe it or not, but the Internal Revenue Service keeps a watchful eye over tax evaders with such precise scrutiny that it will be impossible to evade the gaze of the government.
Possible penalties are fines, criminal prosecution that could lead to imprisonment and even civil remedies whereby you might have to make good your evasion by way of payment of money due.
Missing the 15th of April deadline without requesting for an extension of the deadline can lead to the failure-to-file penalty.
This means you will be expected to pay 5% every month of the money due and maybe even 25%, depending on the nature of the evasion.
Apart from this there are other harsh penalties to look out for, all of which must be respected and approached with caution.