Most of us begin to get anxious this time of year as tax season approaches quickly after the New Year. Tax debts and payments can be a stressful matter for anyone, especially if you already hold thousands in unpaid taxes. Whether you are looking to reduce your 2011tax debt liability or maximize your refund, there are a few steps to help you get the most out of this tax season.
Many people never bother to check old tax returns for inaccuracies or miscalculations. There are a fair number of cases each year in which a taxpayer ends up owing the IRS money over mistakes on their tax return. Even if the IRS hasn’t caught the mistake yet, you still have time to review old returns for accuracy. Further, be sure to double check your current tax return before filing it with the IRS.
Have you reviewed all of the deductions available to you? It is estimated that every taxpayer misses at least one applicable tax deduction per year, which could add up to significant savings. Tax deductions are your key to lowering your tax liability and reduce your chances of owing the IRS money. However, remember that the more itemized deductions you have, the more open you are to an IRS audit. Be sure to have documentation to prove all of your valid deductions when you file your return.