You are legally responsible for payment of your taxes. Understanding your financial responsibility and how tax law affects you can help you keep your financial house in order and possibly save you money each year. A federal tax return is required for all U.S. citizens and most states and some local governments also require that you file a return.
If you work for an employer or if you are self-employed, you will need to determine how much money you want to withhold from your paycheck or submit estimated taxes on a quarterly basis. You will need to maintain records to file and support your return. Planning for your taxes should begin long before your have to pay them.
For most individuals, the filing deadline is April 15th each year. If a request for an extension was filed, the deadline is October 15. Anyone wishing to make changes in their tax status or to establish an IRA must do so by December 31 in order to use this on that years annual return. Your marital status on December 31 is the status that you should use on a return.
During the history of El Paso’s continually changing real estate values many people like “house flipping”. This buying of a property and then re-selling that real estate at a higher value will have an impact on your tax. It will affect the preparation of your taxes. Whether you are buying or selling houses rest assured that you can consult with our firm for good real estate tax advice.
If you fail to file your tax return or if you fail to pay your tax, the IRS may impose penalties. The penalties are greater for the failure to file so you should always file and work with the IRS to make arrangements to pay any taxes that you owe. The penalty will not exceed 25% of the total amount of taxes that you owe.
If you are owed money, the IRS will issue a refund check. You can collect a refund up to three years after the return should have been filed. After that, the IRS will not issue a refund. However, if you owe the IRS taxes or penalties, you will always be responsible for paying and the IRS may come after you at any time.
More than one half of all returns are prepared by professionals. The tax law is constantly changing and it can be difficult to understand. Itemized returns on average contain deductions more than four times higher than unitemized returns. Tax preparation service specialists can help you prepare an itemized return and reduce your overall tax.