In 2017, Congress promised a simplified tax-filing process. Instead of multiple pages to fill out, the average person -- whether he or she lives in Connecticut or elsewhere -- would have one small form to complete and send to the Internal Revenue Service. Well, the new income tax forms do not appear to be any easier than the previous ones.
Tax debt is unlike any other. Owing money to the federal government can be an overwhelming burden that follows you wherever you go. It may keep you awake at night, damage your relationships and interfere with your enjoyment of life.
Connecticut residents who owe a substantial amount in taxes for either the current tax year or as a result of owning back taxes may feel overwhelmed at the thought of trying pay the IRS. If one lacks the funds to pay everything off all at once, it is easy to feel somewhat trapped and defeated. Thankfully, there are options out there to help individuals in just this kind of income tax situation. One great example is an offer in compromise.
Planning for retirement is not always easy. How does one know if he or she really ever has enough money put aside? It is hard to know for sure, especially if one fails to consider income tax requirements. There are hidden tax burdens in retirement that numerous Connecticut residents may not know about, and it could be their undoing.
A woman in another state is going to prison after being found guilty of preparing and filing false tax returns. The moral of this story is simply this: tax crimes do not pay. Connecticut residents who find themselves facing or potentially facing criminal charges over tax filings could help themselves by seeking legal counsel as soon as possible.
Connecticut residents who receive word that they are being audited by the Internal Revenue Service may have a lot of questions and concerns. This is completely understandable, as it can be a frightening thing if one has never been through it before. This week's column will address some common questions people may have about tax audits.
One of the best things about building a retirement or pension plan is that you don't incur any tax liability as it grows. Of course, you will have to pay taxes once you start drawing on it when you reach retirement age, but in the meantime, you can accumulate as much money as possible for the days when you stop working.