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Tax Preparation Overview
The IRS estimated time just to prepare a Form 1040 is 6 hours and 17 minutes. If you added time spent on recordkeeping, copying, assembling, mailing and learning about the tax law, the total time spent skyrockets to 13 hours and 35 minutes.
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So, why do we suffer through this process every year? Well, according to page 75 of the 2004 IRS Form 1040 Instructions, Internal Revenue Code sections 6001, 6011 and 6012(a) state that; "you must file a return or statement with us for any tax you are liable for. Your response is mandatory under these sections...You must fill in all parts of the tax form that apply to you."
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Furthermore, the IRS asks for tax return information to "carry out the tax laws of the United States. We need it to figure and collect the right amount of tax." "If you do not fie a return "you may be charged penalties and be subject to criminal prosecution."
OK, here’s the bottom line. File a tax return or risk going to jail! Sounds
downright official, non-voluntary and intimidating doesn’t it? If you meet the
filing requirements, discussed later, and don’t file, you could face criminal
prosecution. If you file and don’t pay, you face only civil penalties, interest
and the IRS’s aggressive collection division. So, be advised and choose your own
medicine, so to speak.
And, by the way since personal income taxes
contribute 37% of total Federal income, the government needs every eligible
person to file and pay their taxes. Perhaps this is why there are such stiff
criminal and civil penalties for not filing.
Have you ever heard the
expression; "Ignorance of the law is no excuse?" Unfortunately while our tax
laws are not getting simpler of fairer we are still required to file annual tax
returns. There’s no doubt that preparing a tax return can be a daunting
experience. With over 30 years of income tax experience as an IRS Revenue Agent,
Corporate Tax Director and sole practitioner CPA, I have acquired a lifetime of
valuable income tax preparation experience.
If you live in Atlanta, Peachtree City, Newnan, Tyrone, Union City, Fairburn, Fayetteville, College Park, Palmetto or Sharpsburg and would like help with tax preparation, please call me at 770-969-9850.
Tax Preparation
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| ©2007 Michael Johnston, CPA. All Rights Reserved. |
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