A shocking estimate within the IRS data book reveals that more than ten million working citizens living in America face tax penalties every year. It is agreeable to everyone that tax time will be treated as a rough patch in an employed person’s life, especially if he or she has not ventured out to file the tax returns yet.
This problem is prevalent not only in the US but in several parts of the world. Greater care has to be taken considering the complexity of tax filing. A flawed addition or subtraction can cause unbridled issues like extra payment. From tax penalties to unpaid taxes, here are the three most common tax problems Americans encounter in their day-to-day lives.
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Tax penalties in the US can occur for several reasons, such as an incorrect tax return sum, a lag in tax filing, or a late tax payment. Penalties top the list of tax-related mishaps witnessed by fellow taxpayers across Europe. Every year, an assorted mob of 29.5 million citizens encounters the issue of punishment. Sadly, out of them, only close to 11% are relieved of payment. Have a look at this article to learn more.
Unpaid tax money
This second category comprises individuals who owe but do not have the resources to pay. They are the tax defaulters who fail to pay the amount on time in conformity with the laws of the Internal Revenue Service. A huge section of this crowd belongs to the individual taxpayer sector.
Calculation error (Addition, Subtraction, Multiplication & Division)
This is a fairly common mistake that can occur in any domain of the financial world. Attributing this to human negligence in all situations is not a good way to put the blame. However, humans completely relying on machines to do the task is another problem to be discussed. In most cases, mathematical errors can be avoided if companies use tax preparation software or seek the assistance of a tax professional.
In conclusion, tax problems can vary depending on the situation of the taxpayer and his socio-economic background. So, to avoid future problems concerning taxes, it is always better to be on your toes and make timely tax return filings.