Five Ways to Avoid Taxes

avoid taxes

If you are like the millions of people who owe taxes, it’s a good idea to learn five ways to avoid taxes altogether. While some of the methods mentioned here can be a little complex, if you have the right knowledge and tools, you will be able to quickly, easily, and correctly reduce or eliminate all of your financial obligations.

The first tip to remember is that when filing your tax return, always get a copy from each of the three major reporting agencies before you begin. The IRS is very strict about who is allowed to receive an automatic notice and what information you are required to provide when requesting a tax return. Therefore, the earlier you receive this notification the easier the process will be for you.

Next, do not pay the IRS. Most people think they must pay taxes on their own and simply ignore this responsibility. In reality, you are responsible for the tax that you owe regardless of whether you are paying it voluntarily or you have been forced into it by the Internal Revenue Service. Therefore, if you do not want to pay taxes, you should not pay them.

Finally, if you have not received a notice from the IRS that your return was due and you still have not received it, contact your local tax office. If you are not sure about the IRS being in your area, do a search on the internet or ask your local representative for any information that you may need. If the person is not familiar with the process, you may have to seek out an accountant or a tax attorney to help you.

These five tips are not only designed to help you avoid taxes but to ensure you pay your tax obligations in full every year. Although it’s impossible to avoid taxes completely, there are steps you can take to minimize your payments and the amount of money you owe.

First, be sure to read over the Internal Revenue Service’s website and learn about what the tax laws are and the specific penalties associated with a tax debt. Once you have fully understood the laws and what to expect in a notice from the IRS, make sure you don’t delay payment or pay without receiving a notice.

Second, do your best to keep track of your finances by keeping an accurate account of your income and expenses. Many taxpayers fail to take this step because they believe it would be too difficult to do. However, doing so will help the IRS determine whether you have done something to avoid taxes and will prevent you from becoming a victim of an audit.

Thirdly, do your best to pay as much of your debt as possible in full every month by paying as much in interest as possible on it as possible.

Fourthly, never pay more than you owe. When the IRS has collected more money from you than you actually owe, you will most likely receive a notice from the agency that your tax debt has been collected. Although you may feel guilty, this is not the best way to get out of paying taxes.

Fifthly, make sure you file all of your bills and pay as much of them as possible. Even if you believe the bill you just paid is the least bit late, it will end up adding up overtime.

Sixthly, do your best to stay organized and make sure that you pay all of your accounts at the end of each month so that you do not run into problems with paying your bill.

If you follow these tips, you will be well on your way to minimizing your tax obligations. You can even get some tax help by contacting your local representative or accountant to assist you with your tax problem.