Tax season can be a stressful time for many individuals and businesses, but having the right guidance can make all the difference. In a recent episode of “The Key to Understanding Credit” hosted by JD Henry, tax professional Chester Crawford shared valuable insights into tax preparation, deadlines, record-keeping, and dealing with the IRS. Let’s delve into the key takeaways from their conversation.
Meet Chester Crawford
Chester Crawford, based in Huntsville, Texas, brings over four decades of experience to the table as a tax advisor. With a deep understanding of tax law and regulations, Chester has been assisting clients with their income tax preparations for years. His expertise spans personal returns, business returns, estate returns, and partnership returns, making him a go-to resource for individuals and businesses alike.
Important Tax Deadlines
One of the first topics discussed was tax deadlines. Chester emphasized the upcoming deadline of April 15th, 2024, for both personal and business tax returns, including Schedule C returns. He stressed the importance of having all income and expense streams organized before approaching a tax preparer. If unable to meet the deadline, individuals can file for an extension using Form 4868. However, it’s crucial to note that this extension applies only to filing, not to payment. Any owed taxes should be estimated and paid before the deadline to avoid penalties and interest.
Record-Keeping and Compliance
Maintaining accurate records is key to staying compliant with the IRS. Chester advised individuals and businesses to retain tax returns for 5 to 7 years, especially for significant transactions like property sales or business deals. Additionally, he clarified that inheriting property typically doesn’t trigger immediate tax obligations unless there’s a subsequent sale generating income.
Dealing with IRS Notifications
Chester emphasized the importance of responding promptly to IRS notifications. The IRS primarily communicates via certified mail and does not initiate contact through emails or phone calls. He cautioned against falling for scams and urged individuals to seek professional assistance if unsure about the legitimacy of any communication purportedly from the IRS.
Payment Options and Installment Agreements
For individuals facing tax liabilities, Chester recommended filing tax returns even if unable to pay immediately. Setting up installment agreements allows taxpayers to pay their dues over time. However, he advised against relying solely on installment payments, as the accrued interest and penalties may prolong the debt repayment period.
Beware of Scams
In today’s digital age, fraudsters are constantly devising new schemes to defraud unsuspecting individuals. Chester warned against responding to unsolicited calls or emails claiming to be from the IRS. The IRS does not demand immediate payments via prepaid cards or wire transfers. Any suspicious communication should be reported, and individuals should verify the authenticity of IRS notifications through official channels.
Connect with Chester Crawford
For those seeking expert tax guidance in Huntsville, Texas, Chester Crawford can be reached at his office at 100 Highway 190. Alternatively, individuals can visit his website, ChesterCrawford.com, for more information and to schedule a consultation.
In conclusion, navigating tax season requires careful planning, timely action, and adherence to IRS regulations. By leveraging the expertise of professionals like Chester Crawford, individuals and businesses can navigate the complexities of tax laws with confidence and ensure compliance while minimizing potential liabilities. Stay informed, stay compliant, and make tax season less daunting with the right support and guidance.