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| increased its filing of levies, liens | | | | tax on the money withdrawn.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