Saturday, January 10, 2009

Don't Claim Exempt

I work in the tax resolution field and one problem I see is individuals who owe big money to the IRS and the culprit is the taxpayer claiming exempt on their W-4. Many times there is no reason at all why the taxpayer made this particular designation. Sometimes it was because they were ill advised and sometimes it was due to the fact that they knew if they filed exempt they would take home more money immediately and would worry about the taxes later.

For most of these people they never got around to addressing the concern. Then after a few years had accumulated the IRS finally sends them a nice hefty tax bill and WHAM, they are caught in the trap. The IRS then seeks to collect. Fortunately most of these types of problems can be worked out thru a professional tax resolution firm. So remember, don’t claim exempt!

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