Few things can strike more fear in the heart of the average American than having a tax problem. The Internal Revenue Service (IRS) doesn’t exactly have a reputation for being kind or understanding. In fact, they are better known for imposing excessive penalties and high interest rates on taxpayers with overdue tax debts. Given a choice, most people would prefer root canal or a tooth extraction over an appointment with an IRS auditor.
One of the leading causes for problems with the IRS is improperly filling out tax forms. These forms can be confusing and confounding to the average person. And when you throw in the tax issues associated with a blended family, you can have an absolute tax nightmare.
Under different guidance of child support, divorce decrees, and financial obligations, parents can claim certain children as dependents and not others. Paying child support, receiving child support, or calculating alimony? Complicated! Throw in the tax obligations of a new blended family? Convoluted disaster!
The Census Bureau reported that in 2010, over 46 percent of all family units in the United States are blended families. Imagine it–nearly 50 percent of all American families entangled in tax problems.
Avoiding Tax Problems
For a bit of tax relief, blended families should follow these important tips:
1. Keep All Documentation
Make sure everything you claim can be proven or justified to the IRS if you are audited. Keep all your receipts, stubs, and other records about alimony and child support; all paycheck stubs and other employment-related forms; and any court orders or divorce decrees. You will need these items if you are audited.
2. Hire A Tax Preparer
If you are even the slightest bit confused about how to prepare your tax return, look for a company that offers this service. You don’t have to hire a CPA, but you do need a reputable firm with a solid track record. Make sure they are clear about your financial circumstances and that they are prepared to give you the time and attention you need.
3. Find A Tax Specialist
If you have had serious issues with your tax returns in the past, or if you are currently facing an audit, hire a tax specialist who can effectively and aggressively represent you as you face the auditor. You will need a service that can carefully scrutinize all the documents being challenged or questioned by the IRS and who will work directly with the IRS to resolve the issue.
By doing so, you can cut many of the financial problems you might incur if you face the IRS alone. The added benefit of using this type of service is that the burden of proof lies with them, should your return be audited by the IRS.
Preparing your taxes or facing an audit does not have to be a nightmare. There are tax services that can help you with both situations. By utilizing these services you can save yourself thousands of dollars in penalties and fees. Remember, the IRS will not go away, and a tax problem can be a life-long burden unless it is resolved quickly. Take the bull by the horns and accept the help you need before disaster strikes.
Writer LaGeris Underwood Bell knows personally the tax challenges a blended family can face. She encourages these families to seek tax relief from a company like Instant Tax Solutions to help them deal with the IRS.
Photo credit #1: http://www.flickr.com/photos/icanchangethisright/6945640237/
Photo credit #2: http://www.flickr.com/photos/donkeyhotey/6263542143/
