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Use Your Tax Refund for a Bankruptcy Attorney

Now that April 15 has come and gone, just about every American should have filed their taxes. People who are employed will usually get a tax refund. For those that are buried under a mountain of credit card debt, they should consider using their tax refund for filing bankruptcy. Many Americans are kicking the can down the road and paying minimum payments. Many use their tax refund to get caught up on back payments, only to end up upside down again in a few months. Some of these folk don’t file for bankruptcy because they believe they don’t have enough money to hire a bankruptcy attorney. They live month-to-month robbing Peter to pay Paul. This is no way to live and what better time to file bankruptcy is when you get a lump sum of cash returned from the government.

Recently, there was an article in USA Today stating that more than 200,000 households will use their tax refunds to pay for filing for bankruptcy. It’s no surprise because the economy is continuing to slide down a muddy slope. This time of the year is usually very busy for a bankruptcy attorney. Many people realize the financial difficulties they’re having after doing their taxes. Many tax preparers will even advise their clients on the idea of bankruptcy as a way to curb their debt. For someone that has a tax refund coming, usually it would be enough to cover the cost of a bankruptcy attorney and filing fees.

The other time of the year that is big for filing bankruptcy is right after New Year. Just as everyone knows, most people come up with some sort of New Year’s resolution to improve on their life. Lately, financial matters have become front and center for most Americans. Not only are the people suffering, but the government is also buried in debt. It’s no surprise that Americans have followed suit just as old saying goes, “When in Rome do as the Romans do.”As of the end of 2011, the average American has $15,799 in credit card debt. As salaries continue to decline and debt ratios continue to rise, it’s time to put a stop to it all.Visit http://www.taxreturn247.com.au Today!

tax refundPeople use every excuse in the book to not to file for bankruptcy. The bottom line is, it is usually pride. Some believe that if they just give it a little more time, something good will come into their lives that will allow them to get out of debt. That tax refund might just be the blessing in disguise so that person can hire a bankruptcy attorney, stop all the craziness and get out of debt.

When you ask a bankruptcy attorney if they ever get any comments after bankruptcy, they will usually say that the individual filing for bankruptcy only wished they had done it sooner.

There are so many reliable information sources on the Internet and if you can get a time to do a little research, it would be an advantage or else you can check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.

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All You Need to Know to Amend a Tax Return

Occasionally, mistakes are made as we file our tax returns each year. If there are simple mathematical errors, the IRS will usually correct them and send correspondence indicating the changes. However, in cases where income was left out or there are changes to your filing status or claimable credits, you should amend your return to avoid penalties.Check this latest post:http://www.billiesevents.com/use-tax-refund-bankruptcy-attorney/

FORMS AND DUE DATES

Amended tax refunds are filed with form 1040X, and can cover any previously filed 1040, 1040EZ, 1040A, or 1040NR. The 1040X includes columns to itemize changes to the original return, and allows for explanations of the changes if needed. If your changes affect any of the schedules attached to the original return, you will need to attach the schedules to the 1040X as well to better illustrate the alterations. If you’re amending multiple years, you’ll need to include a separate 1040X for each.

If You’re Due a Refund

Note that if you’re making changes that either enable you to receive a refund or increase the previous refund, you must file the 1040X within three years of filing the original return OR two years of paying the tax-whichever comes later. If you filed an original return that claimed a refund and plan to amend the return to increase the refund, you must wait until you’ve actually received the refund to send the amended tax return.

If You Have a Balance Due

And it’s before April 15th

In cases where amending your return will increase the owed tax, you must file the amended return with the additional payment by April 15th. This way you’ll stay current and avoid penalties. The big advantage to filing early is that you allow yourself the time to amend or deal with changes as needed and still meet the April 15th deadline.continue reading here!

And it’s after April 15th

Filing an amended return after that same tax season’s April 15 deadline will result in penalties and interest being assessed from the 15th to the date the additional tax is paid. Filing the amended return quickly after the deadline may avoid some of the accuracy-related penalties.

It is recommended that you use a tax professional to prepare all return – especially amended ones – to ensure quick turn around and accurate filing.

income-tax-returnsWhy would you want to file an amended return that increases your tax liability? Honesty is the best policy when income is omitted. Filing an amended tax return to indicate the proper changes can save time and penalties later, as failing to do so can inspire an IRS audit. If you are audited it can be many months before the matter is resolved – not to mention you’ll be assessed the additional liability along with penalties and interest.

FILING OPTIONS

Unfortunately, amended tax returns cannot be filed electronically, so you’ll need to mail the return to the service center used for your original return. You can expect processing of your 1040X in 12 weeks; sometimes quicker but occasionally up to 16 weeks.
For further reading on federal amended returns:

IRS Tax Penalties & Interest: Late Filing – Click Here.