How Do You Avoid An IRS Penalty?
Filling out tax forms is never a fun task, and most people would rather avoid the process altogether. However, it is extremely important you fill out your documents correctly, otherwise you can incur an IRS penalty. These penalties the IRS lays down can vary in severity, depending on the infraction. Regardless of how steep the penalty is, it is a headache you can avoid. Claim all of your income, including any investments you have cashed in within the past year. The IRS can look up your investment information, and if they find you didn’t claim everything they are going to slap you with a penalty and interest fee. Avoid over claiming deductibles that aren’t exactly deductibles. If you work at home a majority of the time, you can’t claim your vehicle as a business expense. The IRS is going to catch onto this. Tax deductions when you work at home are inspected thoroughly. File your taxes on time. If you compile your tax information throughout the year and file the taxes once you receive yo
