Posted by: Garcia & Cuadra, PA | October 30, 2017

Personal Tax Advisors: Avoid These 3 IRS Penalties

Personal Tax Advisors | Tampa | Garcia & Cuadra, P.A.

Every year, millions of Americans face extra fines and penalty fees from the IRS due to simple mistakes. With the help of personal tax advisors in the Tampa Bay area, you can avoid making these same mistakes.

1. Underestimated Income Penalties

Underreporting your income can come with serious financial penalties and often people don’t realize they are doing it.  Simple miscalculations or misunderstanding that tips and part-time work, apart from your full-time job, are considered part of your income can cause you to underreport your income. The IRS performs audits regularly to ensure that no income goes unaccounted. If they notice any incorrect information on your return, they can call for a full audit of your finances.

Should they have reason to believe that incorrect numbers were reported intentionally, they can prosecute for tax evasion. A personal tax advisor in Tampa can help you determine what counts as income and help you avoid underreporting penalties. If the IRS discovers that you had unreported income, you will owe interest and penalties not only on the income you did report, but also the income you didn’t.

2. Penalty for Not Having Health Insurance

When the Affordable Care Act debuted, it gave millions of Americans access to healthcare. The government mandated that everyone have health insurance or pay a penalty each year on their taxes. This move was to ensure that enough healthy individuals contribute to the system to make up for the ailing individuals who need to use the insurance money. While not everyone agrees on the efficacy of the program, the government still requires taxpayers to pay a fee if they chose not to enroll in health insurance, ACA or otherwise.

While there is no way to avoid this penalty if you do not have healthcare, working with personal tax advisors in Tampa can ensure that your finances are in order. This way, you can either decide if it is worth it to pass on health insurance and pay a fine or enroll in coverage and have the insurance should something happen.

3. Penalty for Not Filing

If you do not file your taxes, you face serious penalties from the IRS. A failure-to-file penalty may cost you 25% of your unpaid taxes on top of interest for filing late. Tax fraud and evasion are considered to be crimes and can land you in jail if convicted. If you make enough money to warrant filing a return, legally, you must file your taxes with the IRS. In the year 2017, the minimum gross income requirements for filing are $10,350 for singles and $20,700 for both spouses. However, if you didn’t file, a professional can help you file late. Should this happen, trust personal tax advisors to help you stay on track with your payments. For Tampa residents who need assistance with filing a return, Garcia and Cuadra can make the process simple.

To meet with personal tax advisors in Tampa Bay, give Garcia and Cuadra a call today at 813-415-2431 or contact us online.

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