The IRS activates a number of punitive actions including wage garnishment or even jail. It is, therefore, crucial to resolving any unfiled tax returns in Houston to escape the wrath of the tax authority. This blog shares some important steps you can follow to avoid IRS tax problems in Houston.

1. File your Returns on Time
It is important to file your tax return immediately to avoid unfiled taxes in Houston. Delays in filing your tax returns can lead to late fees, hefty penalties, and even an audit. It is, therefore, important to keep the important dates in mind and revert to the notice issued by the IRS immediately to avoid legal consequences.

2. Be Honest
When filing a tax return, be honest about what exactly you are liable to pay to the IRS. Do not make wrong claims, such as stating wrong number of dependents. It is also important to avoid filing a return that your spouse already filed. Being honest is one of the proven ways to avoid IRS tax problems in Houston.

3. Pay Charity by a Cheque
IRS follows a statistical model for taxpayers from different income brackets to make charitable donations. For instance, if you have shown a donation in your return above the set criteria by the IRS, make the contribution by cheque to have legal proof of your contribution.

4. Choose Right Tax Form
To file unfiled tax returns in Houston, choose the right tax form to avoid IRS tax problems. There are three types of 1040 form i.e., 1040, 1040A, and 1040EZ. Choose a relevant form out of the three options as per your current tax situation. Apart from these forms, there are other forms also for non-resident in the Houston namely, 1040NR and 1040NR-EZ.  

5. Limit itemized Deductions
Avoid claiming half of your income in itemized deductions. If you go above your income listing, the IRS may mark a red flag to your tax return file and choose your file for an audit.

Final Words
If you have unfiled tax returns, consider the tips mentioned in this blog to avoid IRS tax problems or other related legal issues. To file your unfiled taxes in the Houston, it is always advisable to consult a professional and experienced income tax law attorney to avoid errors on your annual tax filings. Browse the web and find a professional income tax law attorney in Houston to get your tax issues resolved.