| For example, in recent years the IRS has
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| | on the money withdrawn.
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| increased its filing of levies, liens and
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| | 3. Not paying enough taxes when
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| wage garnishments. In fact, in 2004
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| | self-employed. Many people who own their
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| alone, approximately 2.5 million levies
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| | own businesses don't know how much they
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| were filed.
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| | have to pay in taxes. The tax structure
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| The experts at JK Harris & Co., one of
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| | for a self-employed person - what to pay,
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| the nation's largest tax resolution
| |
| | how to pay and what can be deducted - is
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| firms, offer this list of common ways
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| | decidedly complex, so it's easy to become
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| people get into trouble with the IRS.
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| | confused.
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| 1. Filing too many exemptions. An
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| | 4. Not paying taxes on winnings. It is
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| exemption gives you a major tax
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| | necessary to report all gambling
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| deduction, and some taxpayers can't
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| | winnings, including winnings from
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| resist the temptation to report more
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| | lotteries, casinos and horse races, as
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| exemptions than they're entitled.
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| | income.
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| You can only claim exemptions for
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| | For people who are in trouble with the
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| yourself, a spouse and for all
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| | IRS, there are various programs available
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| "dependents." Dependents have to meet
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| | that can provide debt relief if a
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| specific criteria, however, so make sure
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| | taxpayer qualifies. JK Harris helps its
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| you follow the IRS guidelines so that you
| |
| | clients determine if they meet the
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| don't mistakenly file an extra exemption.
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| | requirements for one of these IRS
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| 2. Being unaware of taxes levied for
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| | programs. Its staff includes former IRS
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| early withdrawal from certain retirement
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| | agents, certified public accountants,
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| plans. If you withdraw from a retirement
| |
| | attorneys, enrolled agents and other
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| fund such as a 401(k) or IRA before
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| | experts that offer tax services,
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| you're 59 1/2, you may face a 10 percent
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| | financial planning, small business
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| federal penalty on your investments, as
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| | services and other assistance.
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| well as a state penalty and an income tax
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| |
|
