If you are at risk of being audited and examined, the first thing you should do is seek professional tax advice. Similarly, if you receive collection letters threatening your wages or the tax levy letter for your bank account, you should seek professional tax advice. Thus, this blog is going to outline which tax issues can arise as a result of failed payments and how you can rectify them.
Some tax issues you may face are:
- Penalties – are usually a result of late payments and filing inaccurate tax forms/returns.
- Unpaid taxes – when you owe money but cannot fulfil payments due to various reasons.
- Non-filers – incomplete tax forms that have not been returned which are required or filled out.
- Tax avoidance- this is when businesses or individuals ignore their social obligation altogether. This is usually associated with greed and selfishness, and can damage the reputation of the company. It is considered very unethical and will most likely bring about the attention of tax fraud investigators.
Creating a good payment plan:
- Make a list of all your debts – Your list should include the minimum payment amount, the interest rate and how much you owe in total.
- Rank your debts – You should enlist your debts from the highest to the lowest interest rate since this will help save you the most money.
- Build up your savings – An emergency fund is one of the best tools that you can use to take control of your finances and avoid going into debt.
- Review your banks or credit card policies – This will help you get the most out of your extra payments each month.
There is usually more than one viable option to resolve your tax problems. Therefore, it is essential that the taxpayer complies with the tax law going forward.
How we can help
Let us handle all your taxes so that you do not have to worry about the aforementioned issues arising. Here at Carrington Blake Accountancy, we pride ourselves in having an expert team of accountants who are genuinely passionate about what they do. This passion compels us to provide you with impeccable service, with a strong focus on presenting each client with stress-free and transparent account and tax return handling.
Contact us today to learn more about the vast services we offer and if you have any questions.