Tax Preparation

Before you know it, April 15th will be just around the corner, meaning that it’s officially time to file your taxes. At Victory Tax Lawyers, we advise you to prepare for the process as much in advance as possible to avoid any unnecessary stress. Our tax relief services are here to ensure quick and responsive help for your tax return preparation.

Tax preparation is the process of preparing tax returns. It is the actual process done before you or performed by a tax preparation service, which will file your owed taxes. There are several ways you can go about tax preparation, a few of which we will cover below.

Before jumping into the process, it is important to identify whether you actually need to file or not. Factors such as marital status, age, filing method, and income all help determine whether you need to file taxes or not. To find this out, check the IRS website for info. It is also important to confirm whether you are dependent and if you have to file. During this initial step, it is also important to identify which status you are filing under, such as single, married (separately or jointly), unmarried, or as a widow/widower.

At this point, it is time to gather all of your necessary documents (W-2, 1099, school taxes, property taxes, etc). Filing will be much easier if all documents are organized beforehand. Next, you must determine which form you use in order to file. There are three forms used to file taxes:

Form 1040EZ is the easiest to complete but only works for some taxpayers. Check the stipulations on the IRS website to ensure you are using the right form for you and your income status / financial situation. Make sure to deduct whatever is necessary as well. Once completed, you can either submit online or mail a paper return to the IRS. If you are unable to pay the full amount of your current tax liability, the IRS Installment Agreement will allow you to pay a portion of that tax issue. There are different types of installment plans based on your financial situation. These payment plans can be paid by payroll deduction, direct debit, credit card, and more.

Tax preparation can be overwhelming and stressful. We get it. Since there are so many factors to consider and different stipulations for everyone, Victory Tax Lawyers want to help turn your tax worries into tax relief. We understand it can be a challenge to keep all of your tax documents organized and clear. The good news is that today there are a plethora of resources and services that can do your taxes for you, making filing your own taxes all the easier.

When filing taxes, you are faced with two options to lower your taxable income: the standard deduction or itemized deduction. The standard deduction will lower your income by a single fixed amount, while itemized deductions consist of various expenses for which you may or may not qualify. Whichever deduction lowers your tax liability the most is the right choice for you.

If visiting an actual tax preparation company is something you’d like to avoid, there are several companies that offer online services at affordable prices. This makes it easy for you to file taxes yourself with the support of a website guiding you through the entire process. Services vary as well, making it customizable to your financial situation and personal needs. These online filing services are great if you have some idea about taxes but would rather not do it all yourself. Some of these online companies include TurboTax and H&R Block. Feel free to read reviews to determine which service is best for you.

The tax deadline is the date by which your federal income tax return should be filed with the Internal Revenue Service (IRS). Normally, for U.S. federal income tax returns, the deadline is April 15th. However, if this date falls on a weekend or holiday, the deadline may be extended to the next business day.

Ensuring your tax return is filed by the deadline is critical to:

Financial Implications

Owing to the legal obligation of filing taxes, failing to do so timely can bring about legal consequences, especially in cases of significant tax evasion.

Your credit score might be impacted if the IRS files a tax lien against you due to unpaid taxes.

Gather all necessary documents, such as your W-2s, 1099s, and receipts, well ahead of the tax season. This ensures that you are not scrambling for information at the last minute.

Consider using tax preparation software or hiring a professional. Technology can provide reminders, guides, and tools to ensure accurate and timely filing.

If you’re unable to pay the taxes you owe, it’s still pivotal to file your tax return or at least file for an extension by the deadline to minimize penalties.

You may file Form 4868 to request an automatic extension, which gives you until October 15th to file your tax return. However, any tax owed is still due by April 15th.

If you can’t pay your tax bill, options are available, such as payment plans and Offer in Compromise, which can facilitate reduced burden while remaining compliant. Navigating through these alternatives, it’s crucial to consult a tax professional to ensure that the chosen path aligns with your financial situation and adheres to regulatory guidelines, protecting you from potential penalties and further financial strain.

Legal and Ethical Obligations

As a resident and income-earner in a country, there’s a legal obligation to report all forms of income to the relevant tax authorities, like the Internal Revenue Service (IRS) in the United States. This includes income from side gigs and freelancing.

Beyond legality, ensuring accurate and comprehensive reporting of all income fosters a culture of transparency and ethical financial management. It supports societal structures through tax-derived funding and mitigates risks associated with audit complications.

Omitting income reporting can result in considerable penalties, accumulated interest on unpaid tax liabilities, and, potentially, legal interventions.

Neglecting to declare any form of income increases the risk of audits, during which unreported income could be unearthed, exacerbating penalties and undermining your financial credibility.

Employ systematic bookkeeping practices to manage receipts, invoices, and payment records, thereby streamlining your tax reporting process.

A tax professional or CPA can provide expert guidance tailored to your unique financial scenario, optimizing your tax strategy and ensuring compliance.

Consider making estimated tax payments quarterly to avoid year-end tax burdens, especially if your side gig or freelance work constitutes a significant portion of your income.

Marriage typically alters tax filing status. Couples can choose between “Married Filing Jointly” and “Married Filing Separately”. Each status carries its own implications, affecting tax brackets, deductions, and potential credits.

Aligning tax strategies to efficiently manage dual incomes ensuring that deductions and credits are optimized, is pivotal to circumvent unnecessary tax burdens.

Being a parent can unlock various tax credits:

If you have a lot of questions and are totally overwhelmed by taxes, then meeting with qualified individuals may be your best option to answer your questions and guide you through the process with IRS tax expertise. There are several different tax preparation agencies that take care of the process for you and are easily accessible in most areas — especially relief services in Los Angeles. There are plenty of outlets available for your services, including electronic filing, though one-on-one consulting is always an option.

If you have not filed for many years, be sure to check with the IRS to confirm which years they are looking for. Sometimes, the IRS is not always looking for all returns to be filed. Would you like to find out how many years of tax returns you need to file? Contact us at 866.640.0640 to make sure you are owing the least amount possible. At Victory Tax Lawyers, our tax experts will help you establish a payment plan that most efficiently satisfies any tax issues you might have regarding federal refunds or state returns, standard deductions, tax liens, tax forms, or anything else related to tax preparation and filing.