Common Myths about Taxes
Every year, residents of the United States are required to pay taxes to the federal government in order to fulfill their obligations as American citizens. Unfortunately, however, a number of common myths about taxes and tax filing may cause some people to draw false conclusions regarding this issue. This article is meant to highlight some of these myths and provide the truths behind them.
Myth: Filing an extension is likely to lead to an audit.
Fact: Because of the significant financial burden that taxes can place on individuals, some people may not be able to pay the necessary amounts by April 15th. In this case, individuals may choose to file an extension in order to resolve their financial issues. While some claim that this increases the chances of an audit happening, most experts agree that there is no correlation between filing an extension and being audited.
Myth: Social Security benefits cannot be taxed.
Fact: While it may seem unfair, Social Security benefits may, in some instances, be taxable, particularly if the individual receives other forms of income, such as a pension plan.
Myth: Paying taxes is voluntary.
Fact: In recent years, a number of different individuals have advocated the view that payment of taxes is purely voluntary, a matter of personal choice. Unfortunately, this simply isn’t true: if you fail to pay your taxes, you will likely be subject to criminal prosecution.
While taxes fill a necessary public service, for some people, taxes can pose serious financial issues. If you or someone you know has significant tax issues, an experienced legal professional can help you resolve the situation. Contact the tax relief lawyers of the Tax Relief Law Center today by filling out our contact form, and we will get back to you as soon as possible.