Five Common Tax Problems To Address At The Beginning Of A New Year

The beginning of a new year offers the chance for a fresh start. It is also the perfect time to organize your financial and tax matters. For many, unresolved tax problems create unnecessary stress and lead to costly penalties.

Addressing issues early in the year sets you up for a less stressful tax season. Florida tax-IRS attorney Ronald Cutler has over 50 years of experience protecting the rights of clients and explains five common tax problems and actionable steps you can take to resolve them in 2025.

Common Types of IRS Problems

Tax problems can feel overwhelming, but conflicts with the IRS are common. According to Internal Revenue Service data, over 10 million people owe taxes on their yearly returns, and the agency collects more than $60 billion in penalties annually. The following are five common tax problems:

1. Unfiled tax returns, leading to penalties, interest, and IRS enforcement actions;
2. Incorrect or incomplete filings, such as missing income or incorrect deductions;
3. Misclassification of income, especially for self-employed individuals or gig workers;
4. Failure to plan for estimated taxes;
5. Past due tax debts due to unpaid taxes, missed deadlines, or errors in their returns.

While you may be tempted to avoid or downplay the situation, make it a point to face tax problems in the new year.

Fix Tax Problems at the Start of the New Year

Tax problems often have serious consequences, including heavy penalties and potential criminal charges. Rather than avoiding the situation, which can result in increased stress and sleepless nights, taking proactive steps at the beginning of the year can help you get on track for the future. Our Florida tax attorney recommends the following:

• Organize your financial records and start gathering receipts, income statements, and other tax documents early in the year.
• Review prior year returns and correct past mistakes via an amended return. This prevents further problems with the IRS and could potentially result in a tax refund.
• File any unfiled returns, which can help avoid additional penalties and show the IRS that you are acting in good faith.
• Set up a payment plan if you owe back taxes. Be proactive and explore the various options available for repayment, such as installment agreements or an Offer in Compromise.
• Consult our experienced Florida tax attorney. Our extensive knowledge of the tax code and standard IRS practices makes us a strong ally in resolving even the most complex tax problems.

Schedule A Consultation Today With Our Florida Tax-IRS Attorney

Whether you’re dealing with unfiled returns, mounting tax debt, or other IRS challenges, not dealing with the problem only makes matters worse. With over 50 years of experience, Florida tax attorney Ronald Cutler provides the trusted legal guidance needed to successfully navigate complex tax issues and find lasting solutions. As a CPA and a former FBI special agent in tax cases, we help you start the new year on the right financial footing. To schedule a consultation, contact our office today.

Sources:

irs.gov/statistics/soi-tax-stats-irs-data-book

irs.gov/filing/file-an-amended-return