Don’t mess with the IRS
According to the IRS, “The requirement to file an income tax return is not voluntary.”
And the agency's data indicates that very few Americans fail to file their tax returns every year. In the financial year 2023, the IRS launched only 979 criminal cases for legal-source tax crimes, one of which is failure to file tax returns. By not filing his taxes, Bernon risks becoming part of this small cohort.
This risk could be enhanced the longer he waits. Filing late might result in penalties and interest, but ignoring the tax man could result in criminal prosecution. In 2022, Houston-based businessman Arturo Alejandro Cruz was sentenced to one year in prison for failure to file tax returns with the IRS from 2011 through 2017.
This is why financial experts like Dave Ramsey and Suze Orman recommend everyone to file their tax returns as early as possible. If you struggle to file on time, deal with the complexity of calculating taxes or have a complicated financial situation, hiring a professional could be worth the investment.
Invest in real estate without the headache of being a landlord
Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.
The best part? You don’t have to be a millionaire and can start investing in minutes.
Learn MoreHiring tax professionals
According to a recent YouGov poll, 20% of U.S. adults hired a tax accountant or professional to assist with their recent filing. Another 9% relied on the assistance of a local or community-based tax preparation service.
Delegating the mundane task of tax preparation to these professionals can help you stay on top of your obligations, reduce the risk of penalties and potentially reduce your tax burden every year.
If you’re self-employed or own a business, like Bernon, hiring a professional could be even more crucial as you deal with more complexity and irregular income.
Professional help isn’t necessarily expensive. According to a National Society of Accountants study from 2021, the average flat fee for a tax filing could range from $78 if you’re unemployed to $323 for Form 1040 filing with Schedule A to itemize personal deductions, and a state income tax return.
The richest 1% use an advisor. Do you?
Wealthy people know that having money is not the same as being good with money. Advisor can help you shape your financial future and connect with expert guidance . A trusted advisor helps you make smart choices about investments, retirement savings, and tax planning. Try Advisor now.
