Taxes can be a very complicated situation.
One area in particular where many people find themselves confused is in the amount that they should pay.
It is very common for many people to make over payments throughout the year, only to find that they have additional money left at the end of the year.
If you have overpaid or have been issued a refund by the IRS, you may want to speak with an experienced tax attorney or CPA and decide if you should apply the overpayment to your next year’s estimated taxes.
Working with experienced attorneys and CPAs is the best way to ensure that you are taking care of your taxes properly and are avoiding the chances of encountering tax problems in the future.
Underpayments, on the other hand, are not as easy to dismiss.
If your underpayments are in excess of $1,000 you may be faced with additional fines and penalties.
If you are facing penalties due to underpayments then you should speak with an experienced tax attorney. Your attorney will be able to assess your case and determine the best strategy.
In fact, the attorney will negotiate on your behalf and may be able to work with the IRS and have the penalty waived. Often, penalties can be waived if there were extenuating circumstances, such as natural disasters or catastrophes that were the result of your failure to pay as well as if you were disabled and failed to make the required payments.
You may be able to work out an arrangement where you pay your penalty fess and fines with your overpayment or refund which would be applied to your next year’s taxes. I