The Ten Commandments To Financial HealingНамуна

Commandment #9 - Don't Cheat On Your Taxes

Read Matthew 22:21, Jesus warns to pay unto Caesar what is due unto him. Yes, it may be easy to bump up your deductions a couple of dollars here or there, but the reality is – it really does not pay to cheat on your taxes.

PAY NOW OR LATER…
While receiving a large tax refund is great, having to repay this amount later is simply no fun. Often times, when we are required to repay tax refunds, the amount has already been spent. As a result, we are required to repay not only the amount due, but this may leave us vulnerable to various penalties and interest for failure to report tax information correctly. Also, keep in mind, if the return is deemed fraudulent, hefty penalties may apply and the taxpayer could face a criminal investigation.

EASE YOUR TAX BURDEN NOW
Consider reviewing your tax situation three to four times a year. During these times, determine whether it is necessary to make estimated tax payments to reduce or eliminate your tax liability at tax time. If you are a self employed individual, you may be required to make estimated payments depending on the amount of income you earned.

Also, take time to review your tax withholdings to determine whether you are withholding a sufficient amount of taxes from your paycheck. If you are unsure regarding how much you should withhold from your pay, consider using a withholding calculator available on the Internet to estimate the number of withholdings. Taking time to review your withholdings can ensure you are not bombarded with an unwanted tax bill at tax time.

EXPLORE PAYMENT OPTIONS
If you owe taxes, do not be afraid. Contact the taxing authority to explore payment options. If you do not have the ability to pay your taxes in full, consider setting up an installment agreement. An installment agreement allows you to make payments over a period of time, but keep in mind there is usually a start-up fee and interest may still accrue over your payment period.