Dealing with your past year taxes could turn out to be a difficult proposition as the necessary information may not be available for filing, the high fees and penalties could be a cause for worry, and the work required could seem to be overwhelming. However, it is quite a better plan to completely deal with the previous year taxes instead of seeing the problem getting worse. And the wide selection of audit firms in Dubai has made it easy to find qualified professionals who could effectively deal with the past year taxes.
If you are in a quandary to pay your past year taxes, there are some important information for you. First, the good news is that in 2016, filings to the tune of forty million that were from ninety million people turned out to be negative or zero tax liability. Hence, there are good chances of you not to owe a huge sum in taxes, or you will likely owe only interest and fees, and which could be nominal.
On the contrary, the fees and interest that the IRS charges could together, add up quickly. The fees could be considerable, but the interest rates are quite bad, as they could be around 1% every month (or double of the sum paid on a mortgage). However, if a settlement is made with them, the rates drop quickly. Once a repayment is decided, the interest rate could be as low as 0.25% per month on the debt that you owe, or you may have to pay a little more in comparison to the payment made on treasury bonds by the governments.
Hence, the sooner you deal with your past year taxes, the better it is for you. You could owe less than you might think, and it makes sense to act faster, in which case, you will owe less. Once you decide that the taxes you own in the previous year is a problem, and you are considering solving it, it is time for you to be ready to solve it. To go about it, you need the required information and select a guide who is an expert in tax advisory services all through the process.
It would come handy to have too much information instead of too little. Make sure to get copies of your tax returns for the previous years as well as after the years when no tax filing was done. In addition, collect all the financial information for the many years for which you are filing the tax returns, including your pay stubs, brokerage statements, bank statements, and receipts for the different big purchases. All these information together will make the whole process of filing easy for your past year taxes.
Up next comes the right selection of tax adviser. Although the many large, medium and small sized audit firms in Dubai are competent enough to provide help in filing normally, preparing for past year taxes is a comparatively unusual situation that requires something else.
A savvy tax advisory service company has tax experts with enough experience and knowledge of everything you need to help you pay your past year taxes quickly and charge more competitive rates. Once the documents are in order, paying your taxes to become easy, as you pay off your taxes in a short time, or make a scheduled arrangement to pay them in time. It always feels intimidating when it comes to taxes, and past year taxes are seen more threatening. But with proper foresight, a little effort, and the availability of smart tax advisers, resolving your taxes becomes smooth sailing.