From the hundreds of cases I’ve worked on, the number one reason get behind on their taxes is because they do not withhold enough or withhold at all. Some people even have their W4 filled out with 0 (which tells the IRS to take the most amount of tax possible) and they still owe at the end of the year. So for those that are W2 wage earners and still owe every year, you have to go to your employer and tell them to withhold additional taxes on your W4. This way, you don’t have a big amount that you owe when you file your taxes. For those that are Self-Employed and submit 1099’s, know your tax brackets and make sure you withhold the correct amount. A good rule of thumb is to save 20-25% for taxes.

If you withheld the correct amount of taxes, you would not be in a situation that you owe taxes to the IRS and/or the state. Whether it’s withholding taxes at your job, your business, your 401k you pulled money from, etc… You have to withhold the correct amount of taxes. After you work with us, we will tell you how much taxes you should withhold so you’re never behind on your taxes again. We like you, but we don’t want you coming in again to get a tax resolution. With the accruing interests and penalties, it’s really not worth owing the IRS. Just pay what you’re supposed to pay and when you’re supposed to pay your taxes, and it should be smooth sailings.