Tips on how to avoid getting behind with the IRS or State agencies.

Getting behind with the IRS or State is not a fun experience. All day long I talk to people that are being hounded by the IRS or the State for collections on unpaid taxes. Here are a few simple tips to help you avoid the headache that comes with being in collections for unpaid taxes.

Tips:

1. Always file your returns on time even if you cannot pay right away. This saves you a 25% failure to file penalty
2. If you are a W-2 employee make sure you are withholding properly. 
• The closer you get to zero withholding the more you will pay in taxes. This will save you from owing.
• If you are claiming 4 or more you may end up owing taxes at the end of the year.
3. If you get paid via cash or 1099 as a sub contractor make sure you report all income and do Estimated Tax Payments each quarter. A good rule of thumb is to take at least 25% of what you earn and pay it to the IRS. If you overpay you will get a refund. 
4. Read your tax return before you sign them. You are responsible for what you sign. 
5. Hire a good CPA or Tax Attorney to do you taxes every year. At Oxford Tax we have a service for $50 a month that provides our clients with tax prep, identity theft protection, and audit protection. Very valuable service. 

Share this article if you find it useful and thank you in advance for learning and reading. 

Visit www.wesolvetaxissues.com if you would like a free consultation. 

Cheers, 

Noah Burford

Senior Tax Adviser

949.220.0948

noah@oxfordtaxpartners.com

Click here for a free consultation