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Options for paying the IRS

At the end of last tax season, it may have shocked you to learn that you owed the IRS money. Perhaps you still had not paid what you owed from the previous year. Putting off a debt to the IRS is not like avoiding any other debt. The government has powers for collecting unpaid taxes that few other creditors possess. This can include garnishing your wages and putting liens on your property without the bother of a lawsuit.

If you are unable to come up with the funds to pay what you owe to the IRS, there is no need to panic. As severe as the penalties are for unpaid taxes, the government also offers numerous options for repaying your debt. These are not always easy to obtain, so you would be wise to reach out for information and guidance from an experienced legal professional.

Ready to rent out vacation property? Don't forget the tax impacts

Having rental property can act as a useful way to earn an extra income. Some Oregon residents with multiple properties may even be able to utilize their real estate investments as their main source of income. Of course, you may not feel ready to leave your current job in order to rent out property, but you may feel ready to rent your vacation property out to others a few times a year.

Though you may look forward to putting your property up for rent through a service like Airbnb, VRBO or others, you may want to remember that you hold the responsibility of handling the taxes associated with the income earned from your rentals. If you do not keep this in mind, you could end up in a difficult spot come tax time.

Do you know the tax benefits of a Roth IRA?

When planning your retirement, you ought to consider planning your taxes as well. An employment retirement program uses pre-tax dollars, which means that you will pay taxes on distributions when you reach the appropriate age. You could also pay a hefty tax penalty if you remove funds from the account before that age.

Employment retirement plans are a good way to plan for retirement, but they may not provide you with the most bang for your buck. If you want to keep more of your money in your golden years, you may want to consider a Roth IRA. It may provide you with better tax planning. Only after you have the appropriate information can you make an informed decision.

Now is the time to prepare for next year's tax season

Like many people, once the April 15 tax filing deadline has passed, you sighed with relief. If you got your forms completed on time and sent your check to the IRS, you were ready to relax and return to your normal life. After all, you don't have to think about income taxes again until next spring, right?

If this is your way of thinking, you may be missing out on ways to save money and lower your tax bill next year. This may be especially important if, like many in Oregon, you have watched your tax bill climbing in recent years.

Divorce may complicate filing tax returns

Getting divorced affects all areas of your life, including your finances. Now that it is tax season, you may need to focus on ensuring that you file your taxes correctly. If you make mistakes, you could face serious consequences from the Internal Revenue Service.

You may already feel that filing your taxes is complicated enough, but your change in marital status could make things more difficult. Fortunately, with help and the right information, you can set yourself on the path of filing your taxes with the correct information in a timely manner, so that you avoid unnecessary penalties and mistakes.

It's almost tax time for partnerships and some LLCs

When you considered your options when it came to forming an entity structure for your business, you more than likely took the tax implications of each. Perhaps you either settled on a partnership or chose to have your limited liability company taxed as a partnership. You may have a rudimentary understanding of what that means, but as you approach your first income tax filing, you may need a reminder and/or further information about filing your company's taxes.

Numerous changes occurred regarding taxing partnerships with the passage of the Tax Cuts and Jobs Act of 2017. The first thing you need to know is that your filing date is March 15 or the following Monday if that date lands on a Saturday or Sunday. This is a full month prior to the April date most people see.

Taxes and your trusts

You may have joined other Oregon residents during 2018 and created an estate plan that included a trust. Depending on your needs, you created either a revocable or an irrevocable trust. A revocable trust allows you to make modifications and changes to it during your lifetime. For this reason, the IRS considers you the legal owner of the assets transferred into the trust.

If you created an irrevocable trust, you surrendered all ownership of the assets transferred into it. As an aside, your revocable trust may become irrevocable after your death. In any case, the tax treatment of each type of trust is different. Knowing the rules could help you stay out of trouble with the IRS.

Now is the time to start gathering tax-related information

Though the holiday season is a time of year many Oregon residents enjoy, it is quickly followed by a season that many people dread: tax season. Thinking about your taxes can understandably cause you to feel stressed, but you may also look forward to the possibility of obtaining a tax refund that could give you some extra cash for expenses or enjoyable activities.

Whether you are someone who likes to file your taxes early or who tends to wait until the last minute, it is wise to prepare ahead of time. Having several documents on hand in advance could help you have all the needed information to correctly file your taxes when you choose to do so.

Your retirement accounts are not protected from an IRS levy

No one wants to fall on hard financial times, but this type of situation affects a considerable number of individuals and can happen suddenly. You may find yourself having to contend with any number of financial difficulties that result in an inability to meet certain monetary obligations. In particular, you may not have the ability to pay your taxes.

In a last-ditch effort to avoid having to pay money to the Internal Revenue Service, you may not have filed your tax return at all, or you may have simply not made payments on any taxes that you owe. Unfortunately, ignoring such a problem will not make it go away. In fact, it could make matter worse as the IRS could seize money from your retirement account.

Avoiding mistakes that can cost you on Tax Day

Most people don't like to think about their taxes until April, and that can result in making many costly mistakes. Your taxes affect you every day, so being mindful of how the government claims its share of your money is a good way to ensure you are getting the most from your earnings.

With only a short time before the end of the 2018 tax year, you may want to take a closer look at some of the mistakes you may be falling into that could cost you dearly on your tax returns. In fact, you may decide that having a professional review your taxes helps you find more ways to minimize your tax ramifications.

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