Who the Bleep needs to know about taxes? Everyone! Here on The Tax Bleep, I’ll be discussing various tax issues that affect the common taxpayer. Are you required to pay self-employment tax? How is the Affordable Health Care Act affecting people around the country? What credits are available to people enrolled in secondary education? These are just a few of the endless topics that affect a large number of citizens. Understanding the various aspects that effect your tax return and how to utilize all avenues of tax savings can help you maximize your return and keep more money in your pocket. That is where I come in! I’ll be like Superwoman, but for your taxes! (Too cheesy?)
Okay, so who likes doing, thinking about, talking about, or having anything to do with taxes? Everyone, right?! Probably not. Most people just want to pay what they owe and cringe as they throw their hard earned money at the IRS. Everyone knows or should know what the Internal Revenue Service (IRS) is. They are the organization that is responsible for collecting approximately 90% of revenue for the ENTIRE government. When you think about how many things are provided to citizens by taxpayer dollars, such as roads, K-12 education, police and fire departments, and a vast number of other things, it is pretty amazing that one organization is responsible for generating a majority of that funding.
The IRS also instills a lot of fear in people, which is why they have begun implementing greater transparency between the organization and U.S. citizens. People absolutely dread getting that scolding letter saying “YOU OWE US MORE MONEY!” Now, before you panic, there are a few things you should know. The first may come as a huge shock, but the IRS is not the most efficient organization in the world. *GASP!* Shhhh, don’t tell anyone I told you. However, this is expected when you realize that the number of individual and business returns filed has increased by over 20% since 1998. Yet, while the number of returns being filed is increasing, funding has been drastically reduced by as much as $1.2 billion in the past five years. When taking into account inflation and price hikes, the IRS budget is roughly equivalent to the budget in 1998! Now you can see why sometimes dealing with the IRS can seem like a slow process.
If you do have to deal with the IRS aside from simply filing your return, have no fear! If you have a CPA, simply take your notice in to them, and he or she will help you handle it. Nine times out of ten there is a fairly simple solution to dealing with your issue. If you do not have a CPA, then you should get one! However, if you are not interested in having a CPA, and you would rather handle your taxes on your own, there are plenty of resources on the IRS website to guide you through many issues you may be having. Be sure to stay tuned to The Tax Bleep: where we make tax information fun (or as fun as it can be)!
Email me at firstname.lastname@example.org, and I will hook you up with a CPA to help!