Filing your taxes can be a never-ending hassle. From the filing procedure to all the minor details, it’s a tiring process to go through. Taxes are essential to a nation’s well-being and development. So, no matter how much you hate it, taxes are here to stay.
Following are some little-known facts about individual taxes that you may find interesting:
- Not everyone faces an IRS audit- The IRS audit is like a terror word for taxpayers. However, it is not feasible for the IRS to look into every single individual tax that is filed. Wealthy taxpayers have a greater chance of getting audited as compared to the average taxpayers. But, this does not mean that any fibbing related to tax returns will be cornered. The IRS efficiently tackles every single detail using specialized algorithms.
- Category of non-taxpayers- Taxation is at the core of the government revenue. However, do all individuals pay taxes? The answer is “No”. Only those individuals whose income falls below a minimum amount are exempted from income tax. Even older adults relying on social security benefits may be free from paying income tax. So, before fretting about your tax liabilities, check out the filing threshold. Tax deductions and credits can reduce your taxable income to zero.
- Patience is essential when reaching out to the IRS- The IRS has trained staff, and its sole task is to help the taxpayers. However, is the number sufficient to provide immediate help? Unfortunately, no. It receives millions of calls during the tax filing period, and with the insufficient availability of professional staff, people have no choice but to wait. Services are also limited due to the coronavirus pandemic, which calls for additional patience.
- Tax rates are lower as compared to other countries- Developed countries usually have a progressive tax system. However, what about the tax rates of countries other than the US? Countries like Denmark, France, and Belgium have huge tax rates compared to America. Tax liabilities in America are on the lower end of the scale in comparison to other developed countries.
- Fixing the tax system is not a piece of cake- Amends and changes in the tax system are an ever-going political talk. However, is it that easy to introduce the changes? While some proposals may look efficient on the surface, their consequences may be risky; similarly, while others may not be budget-friendly.
About the business
While the above facts will give you more insights into the tax filing and related benefits, hiring a professional accounting and consultancy company is always a recommended course of action. Florida Global Consultants is a company dealing in taxation, accounting, and consultancy services. Top-rated amongst its clients, we will make the tax-filing job much more accessible and convenient for you. We will help you ease the process and make you aware of taxation’s detailed and legal aspects. For more information about us, contact us at (786) 456-5140 or connect through e-mail at [email protected].