It is never a good
idea to guess when filling out a tax return. Instead, you should find
a tax advisor in your area who is qualified to help you determine if
you’re eligible for a credit or deduction. Let’s look at some of the
potential consequences of submitting an inaccurate state or federal
You Could Be
Subject to Financial Penalties
If the IRS rules
that you aren’t eligible for a tax credit, it could add hundreds or
thousands of dollars to your outstanding tax bill for the year. The
same might be true if you underreport your income or try to claim
that a personal asset was used for business purposes.
Additionally, the government will likely add a late fee and charge interest on the past due balance. Finally, you could be subject to fines or other punitive damages in the event that you willfully violated the tax code. In such a scenario, it may be a good idea to find a tax advisor who can help you in your battle against the government.
Might Pursue Criminal Charges
As a general rule,
the government doesn’t press criminal charges against those who make
honest mistakes. However, if you willfully attempt to defraud the
federal government, there is a good chance that you could face jail
time or other significant penalties.
Working with a company such as Financial Advisors can make tax time less stressful. Learn more about the services that this organization provides by visiting.
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