Red Flags On Your Taxes: Things That Make The Irs Jump

Submitted by: Seomul Evans

It isn’t rare to hear about someone who was unpleasantly surprised by a sudden IRS audit. They don’t know what issue with their taxes made the IRS investigate them, and are therefore confused and frustrated with the situation. Well, aside from the confusion and frustration, some tangible outcomes might result from such investigations, like confiscation of property and even imprisonment. Almost sardonically, all this can sprout from innocent mistakes that taxpayers don t even know they’re making. Sure, a Dallas tax attorney can enlighten you on what you did or didn’t do that was wrong in the eyes of the IRS, but by then you’d already be in trouble and getting out of the mess would entail effort, time, and money.

So why not learn about the unnoticeable red flags that you could be unknowingly putting up to tempt the IRS to call an audit on your taxes beforehand?

Evidently, one of the worst things you can do is to keep the IRS out of the loop concealing details and not stating them in your tax forms. Always, always keep the IRS in the know. A lesser version of intentional concealment is neglect. The simple mistake of not paying attention to the details of a tax form or not paying attention to when you’re supposed to file it can become red flags. And though we call them “lesser” versions, that doesn’t mean they won’t get you into trouble.

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Always fill out all appropriate parts of your tax forms. Tax problems are often caused by insufficient detail in tax forms which would then lead to IRS audits. The same can be said for late filing. Some people get IRS problems simply because they didn’t take the time to read or accordingly respond to IRS notices. And they didn’t even owe the taxman anything. Notices regarding late filing or other aspects of filing your tax forms that you usually neglect should be given due attention.

Another thing that can cause tax problems are the amounts of income you indicate in your tax files. Too many zeroes in your indicated amounts might cause the IRS people (and computers) to think that you’re rounding them up to leave some parts of your income unaccounted for. Now if you simply rounded them up because you don’t know the exact amount or you were estimating don t stick to that practice. Always know the amounts you earn. Keep invoices or receipts and keep them well documented or in file for reference.

Keeping track of everything might be a taxing task, no pun intended, but doing so could keep you from headaches regarding tax and the IRS. For instance, your income for this year is higher than last year and lower than the year before that, and you didn’t bother to provide supporting documents to show why well, then the IRS would find out on their own. Fluctuations in income entail corresponding fluctuations in income tax, and an IRS computer can easily pick it up and register it as an anomaly instead of an innocent fluctuation. So actual IRS personnel can label the fluctuations for what they are, provide the documents to support it.

IRS problems could easily be preempted given proper attention to detail and an earnest effort to file your taxes correctly. It isn’t that the IRS are hot on your tail trying to pin whatever dirt they can on you, it’s just that they need you to be exact, precise, and well-documented.

About the Author: Seomul Evans is

SEO

consultant specializing in Attorney Marketing. Visit the sites to learn more about

Dallas IRS Attorney

and

Dallas Tax Attorney

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Savings Account Wealth Building Strategies

By Simon Volkov

Opening a savings account can be rewarding and financially beneficial to those who commit to making savings a priority. Contributing to a savings account can be challenging for those on a tight budget. However, most people have more money than they realize. With a few simple adjustments to their budget, nearly everyone can squeeze a few more dollars out of their income.

Many savings account providers offer incentives to new customers such as higher interest rates and reduced maintenance fees. Some banks offer cash bonuses when a savings account is opened or once they have been in place for three to six months.

Establishing a savings routine allows individuals the opportunity to reach short- and long-term financial goals. Many people find it easier to contribute small amounts weekly, as opposed to making one larger contribution each month. In order to determine which method works best, individuals should take time to review personal finances and create a household budget.

Financial experts, Suze Orman and Dave Ramsey recommend contributing a minimum of 10-percent of income to a savings account. Ramsey suggests considering savings deposits as a monthly bill. Thinking of savings as a required expense helps consumers put forth an effort to pay their self.

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While many people perceive creating a budget as a chore, nothing could be further from the truth. Taking time to review expenses and developing financial goals is the only way to arrive at your financial destination. Saving money for the future provides financial security and peace of mind knowing funds are there if unexpected expenses arise or when investment opportunities are presented.

Not so long ago, most people were spending more than they earned. Millions of people lacked savings accounts and were living paycheck to paycheck. Many of those who lost their jobs also ended up losing their homes to foreclosure because they failed to have a financial safety net in place.

In order to prevent becoming a victim to economic changes, consumers must take control of personal finance. Learning how to be frugal and live within your financial means can allow you to have the things you want and need.

Numerous personal finance websites can easily be accessed from home and give individuals the opportunity to learn different wealth-building strategies. Once a household budget is created, individuals can determine how much they can afford to deposit into high interest savings account.

Consumers can maximize their savings by taking time to comparison shop savings account providers. Two good sources for comparing savings account are BankRate.com and Bankaholic.com. Both financial portals allow visitors to compare interest rates, transaction fees, monthly management fees, and opening deposit and minimum balance requirements.

When comparing savings accounts consumers should seek out providers which compound interest daily, as opposed to quarterly or annually. On average, high yield savings accounts earn about 1.4-percent interest, while traditional savings plans earn around .62-percent. Taking time to compare banks can allow consumers the chance to double earned interest.

Consumers should also review banking fees. Most banks charge fees for using ATM machines or obtaining paper bank statements. Others charge fees when consumers exceed monthly withdraw limits or when balances fall below minimum requirements. Banking fees can override earned interest and cost consumers more than they earn.

Most people can deposit five to ten dollars per week into a high interest savings account. Giving up morning lattes or fast food lunches can add up to substantial savings over the course of time. Making small changes to daily habits can eventually lead to financial freedom.

About the Author: Real estate investor, Simon Volkov provides a personal finance article library to provide visitors with wealth building information and resources. Topics include: tips for locating the best

savings account

, budgeting, and investing. Discover more money-saving strategies at

SimonVolkov.com

.

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