Fun Facts About Tax Preparation

When it comes to thinking of fun things, tax returns are probably at the bottom of most people’s list. However, there are some exciting and fun facts about taxes in the United States, of which most people are probably not aware. Here is just a small sampling of them.

1. Most people do not know that the Internal Revenue Service can file your taxes for you. They do not make a habit of this, and they do this as a last resort. If you fail to respond to their many notices and directly do not file, they will do it for you. You will generally be categorized as being single with no deductions. This will usually result in you owing far more than you may typically would. It is in your best interests to file taxes on time, every single year.

2. If you are due a refund from the IRS, you will not be penalized for filing late. Except in the cases of fraud or tax obstructions, any penalties the IRS levies are based solely on what you owe them. As long as it is the other way around, you will not be penalized for filing past the usual date of April 15. The IRS gives you three years to get your tax return filed. After that period is up, you are no longer eligible to receive a refund.

3. If you find out after you have filed your tax return that you made an error, you are free to file an amended return. There are no penalties for doing so. Of course, the best way to avoid having to file an amended return is to hire any tax preparation consulting scottsdale az before you submit the taxes in the first place.

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4. Filing a tax return that is full of frivolous statements such as “the Internal Revenue Service” has no legal bearing to collect taxes will result in paying fines to them instead. The fines levied could range from $500 to $5000. That is a steep penalty for trying to make an invalid point.

5. Evading taxes is a crime punishable by very real prison time. You may receive up to 5 years in prison as well as receive a fine of up to $100,000. Even if you have forgotten to file a return you will be penalized. The penalty will be more severe, though, if they prove you were trying to evade them on purpose.

As you can see, there are some interesting and fun facts about taxes that you were previously probably not aware of. By learning more about them, you can begin to realize just how important taxes are and also how important it is to file them correctly and on time. Remember, never attempt to avoid taxes when it comes to the Internal Revenue Service. Such actions never end well at all. Keep on the right side of the law and always hire a tax firm to do them.