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Steps to reduce your bill with last minute year end deductions

Muzahed I.
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Steps to reduce your bill with last minute year end deductions

Although the year is over almost, it is not so late to use the tax breaks for the present tax year. You have to do the actions fast. Certain breaks are contingent based on you finish the transactions prior the end of the year. The easiest tax breaks to receive, when you list the deductions on schedule A. It is the deductions for charitable donations. Anyone can use these deductions for cash donations which they make and for products which they donate to get tax exemption. Now is a best time to do additional donations to assist others when getting tax benefit. It does not matter about the things how you do your donations. You must receive a receipt from the company. You should receive it even if it is a church congregation donation.

If you donate cash it is easy but at the same time if you donate products, you want to evaluate the market value and ensure that the products are in proper condition. Get a receipt from the charity if you donate items and if you donate cash. If you spend money out of your pocket for your business expenses, you can minus many of those expenses even if you a worker for one company instead of containing your own business. If you spend money from your pocket for office related expenses like traveling, company cell phone, you can minus some of the amount to the level that they cross the limit of two percent of the adjusted gross income. If the expenses are related with home business, you can have the right to deduct these expenses also.

Therefore when you are planning to purchase a computer, immediately purchase the one prior the end of the year to receive the deduction. You can also improve your retirement account contributions when you have not put in the maximum already. The 401(k) contributions are tax deductible hence including to the account assists the nest egg and can reduce the tax bill. You can make contributions which lowers the taxable income till the end of the year. If you contain an IRA, you really have till April 15 to do contributions. When you are clear that you are doing a last year contribution, you get a additional time. This can be useful when you want an additional deduction in the future year. You can also sell the losing stocks and minus the losses on the capital profits.

After you have offset the capital profits, you can look any additional for about 3000 dollars on lowering other income. You want to be cautious, ensure that you need to sell the investments seriously. If you contain a deductible expense coming up in advance in the new-year, you can pay it now in advance; prior the year ends and uses the benefit of deduction. You can prepay the itemized expenses; the common costs are investment expenses, medical costs and job hunt cases. You should keep in mind that there are some state tax credits for the thing you may be qualified. hmrc tax credits also known as HM revenue and customs tax credits. You can contact it for the changes which may affect the tax credits, when, why and how you want to report a modification.

Image courtesy of nuttakit /FreeDigitalPhotos.net

Choosing an Investment Strategy for Your Super

Muzahed I.
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Choosing an Investment Strategy for Your Super

Australia’s retirement plan, called a super fund, is one of the best plans in the world. It might be a good idea to take a few pointers from them. Involving yourself as a trustee in a Self Managed Super Fund is a great way of planning for your retirement. The fund is easy to manage due to the limited number of people involved directly in its operations. This type of superannuation entities has become popular and brings with it an array of advantages to trustees.

Members have numerous options of investments in order to grow their capital. The group can agree to put some of their money in listed companies on the Stock Exchange for long term gains. Investments can be in real estate or other commercial activities that are sure to bring you some revenue. Engaging in profitable activities usually translates to immediate benefits. This may mislead the trustees to start enjoying then instead of keeping them for the future.

When you run a business, and at the same time you have registered the enterprise with an super fund, you are given an opportunity to buy property from within the fund. Properties acquired in this way come with an advantage of reduced taxes. You can also borrow money from outside and use it to buy the property, and then direct the profits to your retirement plan. You can start a self managed super fund, in which you control your fund with the guidance of reputable institution.

A member may decide to give a certain amount of property to the fund as contribution. This increases the capital base and profitability of an SMSF thus a direct gain to other trustees. However, like any other business, the more profits a company makes the more taxes it pays. Thus, you group might be required to pay higher tax depending with the value of acquired assets. To make wise decisions when accepting contributions from a trustee, it is important to seek counsel from a tax professional.

To safe guard against risks and loses, whatever a member invests remains under the fund and cannot be used to grant a loan back to him. Neither can a close relation borrow from the fund on the name of a member. This allows risk reduction. Clearly drawn strategies should be followed to the latter if the fund is to succeed. There should be more investment than loaning out.

Since your assets and those of the SMSF are separated, you become secure in case of financial difficulties on your side. The property attached to the group cannot be counted as personal property and can only be disposed when they are due. Losing a job towards retirement should, therefore, not be a worry to you.

The group trustees do not receive a stipend for the services they offer to the Self Managed Super Fund. This makes it possible for the shareholders to increase revenue while eliminating any overheads that may arise. You, as a member, should therefore be at ease in carrying out tasks related to raising the profile of your superfund. In the long run, it is you who will be safe financially after retirement.

In case of death, there is a law provision that requires immediate payment of benefits be done to the next of kin by the trustees. Though death is an unfortunate occurrence, you will have in place a mechanism that protects your children and other member of the family who may be dependent on you. Joining an SMSF should, therefore, become a priority you. The earlier you form one, the better. It is prudent to seek legal advice on the establishment and running of such an entity.

What Can Print Management do For Your Business

Muzahed I.
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What Can Print Management do For Your Business

Nowadays, small and big companies alike take advantage of computers in their daily business operations. Computers are used for many things like creating documents, presentations and keeping data rich databases to name a few.

The documents stored in a computer oftentimes need to be printed. An average company prints around a hundred documents in just one day. Printing takes a major cut of the day to day expenses of running a company. Therefore, focus should be given on saving as much money and recourses from printing as possible by making rational choices. This is where print management comes in.

Let’s take a look at the advantages print management can offer your business:

Reduces printing costs

By incorporating the use of print management software, companies are able to lower down their expenses on printing materials and reduce copying costs. The main objective of acquiring this software is to combine different tasks under the control of single command software. Thus, there is no need to invest a huge amount of money on printers, papers and ink. The number of printers used, the amount of paper and ink used are evenly distributed for daily use. Money saved on printing can have a big impact on the overall operational costs of a company.

Assured security

Print management assures data security. In certain cases, individuals are given a pin or a special user name in order to print their documents. This is applicable to printing confidential documents, as proper authentication is needed before confidential documents are printed.

Overall control

Print management software allows for monitoring and control of the number of documents printed every day. Companies are able to manage printing tasks, logs, as well as quotes. An audit that aims to rationale the use of ink, paper and number of printed copies is also provided after a certain period of time. This aspect creates a problem-free environment, as well as one which promotes efficient productivity.

There are also some hidden costs associated with maintaining the printing process in a company. These costs are cut down with the use of print management software. All the materials and expenses are managed effectively with the use of single software, thus you have the ability to really track down expenses well.

Improves employee productivity

Manual printing process may sometimes use up a huge amount of time otherwise spent on more productive activities like focusing on the core tasks of a company. With the help of a print management system, employees can focus on their work well, not only increasing the overall productivity, but also enhancing the quality of their work.

Features

Job Accounting

This feature is also called tracking and reporting. This is the main option that allows registration for all copy, print and scans tasks. This serves as the basis for setting up limitations and rules, including the direct payment options and a billing feature.

Push Printing

In this feature, the PC of the user sends the job to the main server, and there it is registered and directed to the relevant printer.

Pull Printing

This is the common method where the user presses the ‘print’ option and the task will go to the printer and authenticates the process before printing.

The above mentioned advantages and features show that print management is relevant in making sure that your business operates the way it should, while at the same time rationalizing the amount of resources used.

 Image courtesy of Stuart /FreeDigitalPhotos.net

Tips for buying a house in Pakistan at cheaper rates

Muzahed I.
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Tips for buying a house in Pakistan at cheaper rates

Finding a house on cheaper rates is a rare catch and only few investors can imagine missing it. For regular buyers, a little effort is required for coming across such a proposition. The elevating status of property in Pakistan has made many people drawn to investing in this sector while only a few afford to actually do it. For those with enough money to buy a house of their own or invest that amount to generate a sound source of income, this post discusses few tips on buying a house in Pakistan at cheaper rates.

Urgent sellers

Out of need for cash or the relocation of the owner to another city or country, many sellers end up urgently selling their assets including houses. You can find such advertisements in newspaper, mostly in Sunday editions.  Most of such deals are cashed by those who contact the sellers first. It is the reason why many of us find such property or items sold out earlier in the day. The urgent sellers mostly have a rough idea of market price and they are after any amount that appears decent enough to them. This is the reason why many buyers and investors have enjoyed buying decent houses and even the expensive DHA Lahore property at unbelievably cheaper rates.

Look for the loopholes

It is generally seen that value of houses in Pakistan drops dramatically if their construction style has loopholes, such as poor ventilation, unimpressive entrance, or ragged interior. Looking for such a house for sale can actually save you more amount than that required on fixing the loopholes. Same is true for the houses that lack in offering enough woodwork, decent wiring and newly styled windowpanes. It is a common observation that if not sold on the supposedly low market-price, the owners of such homes in Pakistan are made to wait for tiring long months to find a decent deal.

Consult different sources

There are agents who know the houses and property that apparently fail to attract buyers. The buyers and investors who are aware of the fact that, in the longer run, any investment in real estate is a deal worth it, presumably make reasonable gains. By consulting different sources, including online and offline mediums, you can be sure of coming across some very viable options. For initial research or in some cases more detailed one, many online real estate portals including Zameen.com that deal specifically in Pakistan property can be consulted. Such portals also maintain listings of authentic and active estate agents and thus save you from a lot of hassle.

Depending on their individual capacity, a lot of Pakistanis despite of their geographical locations are much interested in buying property in different cities of Pakistan including Lahore. In Lahore real estate, DHA Lahore is doing particularly good. However, for buying a house at cheaper rates, hunting the DHA’s adjoining localities could be a good option. Also, the old structures and houses have low asking price since most of the price mainly includes the amount of the land. By following the mentioned points and consulting the estate agents and property experts, you can certainly find a house in Pakistan at cheaper rates.

 

Image courtesy of David Castillo Dominici /FreeDigitalPhotos.net

Which features of Bridging Finance makes it advance

Muzahed I.
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Which features of Bridging Finance makes it advance

Thinking about buying a new house but your already existing one is on the mortgage and the finances needed to pay for the new house are not being arranged? Then you have a perfect solution with bridging finance. This term bridging finance involves the short term loan solutions with minimal amount of paperwork and referencing. It is a type of short term loan which is taken out for a period of 2 weeks to 6 months for arranging any pending loans and paying it off later after the arrangement of capital has been made. At times it is also called as “caveat loan” or “swing loan”.

This type of loan is made either on an individual basis or for business needs. Once the payment is done for the immediate need, it is returned later when funds are arranged. The only difference in this type of loan and long term loans from the banks is that long term loans demand more referrals and documentations while this short term bridging loan needs no such thing.

There are two schools of thought,one which says that bridging loans require greater interest rates hence are not worthy and the other school arguing that even if the rate of interest is greater, it is effective for shorter term hence the total interest rate comes down to the same value as in long term loans. Also they debate that the paperwork required is very less in bridging loans and hence they easily cater to the immediate needs of the client. Being a helping hand in real estate, this bridging loan proves to be beneficial for the individual who is into this business. Various brokers and banks are offering this kind of bridging loans these days. No matter what kind of situation you are into, do consult a broker or bank to fulfil your needs.

Bridging loans are also used for commercial purposes. These are seen to be most beneficial historically when you have to move on by selling your old home and can’t arrange the buyer. But buying a new home instead is very necessary. So the coinciding point of the two i.e. selling old one and buying a new one is not possible many times and this financial gap is being bridged by the birding loans. They offer you 6 months of loan, makes you buy the new home and later when you get good payment for your old home, you can sell that one and repay your bridging loan. See how effectively it controlled themismanaged situation of finances!

The need of this bridging loan is not limited to the real estate business only but has extended its areas to other kinds of business too. No matter what business you are into, this bridging loan can be your life saver. Sometimes we expect funds to generate through our business at some specific time but due to various reasons, they are delayed. Now further money is required to run the vicious circle of business i.e. to buy the new machinery, the raw material etc. this gap in the finance is covered up by the bridging loan. You just take this loan and then repay later when the funds are generated in your business.

Hence, there is no denial in the fact that bridging loans are of great necessity in today’s competitive world. To meet the demands of growing finance, one or other form of loan is always taken then why not this bridging loan which can take us to new heights of achievements and success. Don’t hesitate and grab the opportunity!

Moving house? Downsizing could be the perfect solution

Muzahed I.
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0
Moving house? Downsizing could be the perfect solution

Many homeowners are still feeling the pinch of the recent recession and are seeking out ways to free up some equity and improve cash flow. One of the simplest ways that a homeowner can reverse their financial situation is by downsizing, i.e. selling their larger home and buying a smaller, less expensive home instead. Of course as with anything in life, downsizing comes with its own pros and cons:

The Pros of Downsizing:

  • Increased cash flow – Your monthly mortgage repayments would be lower on a smaller property, meaning more disposable income available to you. It may even be possible to purchase your new, smaller home outright with the profit from the sale of your larger house. You could use your new-found disposable income to employ a high end interior design service, they can make your new home look fantastic and help you to maximize your new, smaller space in terms of storage.
  • Reduced utility bills – It goes without saying that a smaller home will be much cheaper to run. With smaller rooms and less of them to heat you’ll find your energy bills are significantly reduced, and your home will be much kinder to the environment too.
  • Increased free time – With fewer rooms in your house that need cleaning you’ll find that housework doesn’t take quite as long, leaving you with more time to do the things that you actually want to do.
  • Fewer purchases – You may find yourself cutting down on the things that you buy if there is less room to store them. Yes that lamp is nice, but where would you actually put it? A smaller home should make you think twice before buying things that you don’t need.
  • Reduced stress – Many homeowners who have chosen to downsize find that the increased cash flow, reduction in housework and increase in free time make them feel much less stressed. The demands of running a large house can take their toll on homeowners, so switching to a smaller house is often a lifestyle choice as well.

The Cons of Downsizing:

  • Restricted space – Going from a large home with spacious rooms to a smaller home with smaller rooms can be a shock to the system at first. It will take some time to adjust to having less space in which to manoeuvre. You may also find that you have less option for escaping from annoying family members as there are fewer rooms to hide in.
  • No room for guests – Moving to a smaller home usually means that you’ve had to reduce the number of bedrooms and lose the spare room. Throwing family parties now means that guests from out of town will have to stay at a nearby hotel instead.
  • Fewer possessions – Homeowners with larger homes tend to fill them with more belongings and can be reluctant to part with things when they still have the room for them. However, downsizing your property also means downsizing your possessions. Most of us form emotional attachments to objects so it can be difficult to part with them; but now is the time to be ruthless and downsize your life as well as your property.
  • Damage to social standing – For some people, a large home is a sign to others that they’re in a great financial position and doing well for themselves. Moving to a smaller home might lead people to think that you’re struggling financially rather than reducing your own stress!

Image courtesy of ddpavumba /FreeDigitalPhotos.net

Income Protection Insurance – ‘Yes, please!’ or ‘No, thanks!’ ?

Muzahed I.
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Income Protection Insurance – ‘Yes, please!’ or ‘No, thanks!’ ?

We all grow up thinking that as soon as we finish our studies, we will get a job. The job will make it possible to buy a home and pay for the mortgage in the years to come. However, life is not always a bed of roses. Often will it happen that people who have the responsibility of a family on their shoulder worry about a situation in which they could not do any work due to an illness or some other predicament. They keep on thinking whether their family would be able to survive without them working. For many, if this hypothetical situation becomes a reality, it turns their life into a true nightmare and they find themselves completely helpless.

So, is there anything one can do, should this happen?

One possible solution for this kind of situation is to take an income protection insurance plan. With income protection insurance you can make sure that you will get a minimum amount every month as long as you are not able to work or until the contract period of your insurance ends. This amount can be something from 65% to 75% of your current salary and you will get it as per contract of your insurance plan.

The best thing about income protection insurance plan is that it covers you in those situations which your worker’s compensation policy from your employer will not cover. For example, if you get disabled due to an accident on road or any illness that is not related to your work, your worker’s compensation policy will not cover it. However, if you choose the right income protection insurance plan, it will cover you and it will give you a stable and regular monthly income till you recuperate and are able to work again.

Another benefit of your income protection insurance plan is that you can choose your benefit period, while this is not possible in worker’s compensation policy. With the right income protection insurance plan, you can extend your benefit period until you reach the age of 70. In case you are permanently disabled, you will keep getting up to 75% amount of your salary until you are 70 year old, and this is somethingyou do not get from any other insurance plan. In case you are self-employed, it will work as a great safeguard for you, since you will not have a worker’s compensation policy.

If we talk about Income Protection Insurance pros and cons, it is necessary to mention the following:

A few major benefits of income protection insurance include:

1) regular monthly income up to your recovery or contract period
2) it will cover almost any medical condition that can prevent you from working ( pre-existing diseases are excluded)
3) great safeguard for self-employed person
4) Income is tax free

Some possible downsides would be:
1) the benefit amount is always fixed with portion of your current income; inflation doesn’t make any increment in it
2) definition of disability may bind the coverage

Taking the possible downsides into consideration, you never know what the future holds.  In case it ever happens that you are unable to work due to bad health and you are to pay off the mortgage, it will not be long that after a few EMI bounces, your home might be seized with a court notice. Therefore, if you are taking home loan, think again and seriously consider the plan for income protection insurance also.

Image © Perofeev | Dreamstime Stock Photos & Stock Free Images

How to Successfully Offer Trade Credit

Muzahed I.
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How to Successfully Offer Trade Credit

Nothing could beat the feeling of having the ability to buy an item and paying for it at a later date. This is why credit cards and online shopping sites’ pay later purchase schemes are extremely popular these days. Consumers almost always like the idea of making a purchase and not being required to pay for it outright. It is like extending credit to them. This is what trade credit is all about.

Your business could boost sales by offering trade credit. You would strategically allow your customers to pay for the products or services they bought from you at some time in the future. For sure, more customers would be further enticed if they learn that your business may not require upfront payment upon purchase or delivery.

Understand that granting trade credit is now an expected and widely used practice in most industries. But you should try to protect your company from possible bad debts and greater risks from providing the credit. If implemented effectively, the practice could serve as an important key that may lead to your business’ success. Otherwise, it could jeopardise not just your profitability but even your venture’s survival. Here are ways on how to implement it.

Put everything in writing.

Draft your credit policy in a way that you clearly specify your business’ credit evaluation criteria, the credit limit you set, and your proposed payment terms. The document should also state your penalties and the interest rates you would accrue especially on possible late payments. This policy would serve as a document that states your terms and conditions for extending the credit to customers.

Require credit references.

The written credit policy must include a formal credit application form that should be completed by your customers before they are allowed to obtain trade credit. Include a portion where your customers could enumerate/name his credit references, possibly their banks and some other creditors. Before providing the trade credit, be sure to contact those references for verification of information about the customer. Checking his credit record may also help.

Set limits and terms.

Your credit and reference checks should be used for setting appropriate credit limits as well as payment terms. Those limits and terms should differ from a customer to another. Thus, the trade credit you offer and provide to every customer should vary depending on his credit worthiness.

Strive for balance.

Don’t be too strict or too lenient. If you have stringent credit criteria, you may turn off good customers and possibly lose sales. On the other hand, if your criteria are too lenient, your business may end up piling bad debts and uncollected receivables. Set your goals in the middle ground to have a balance.

Determine your business cash flow requirements.

Lastly, set your credit policy in a way that it would meet your business’ monthly cash flow requirements. How much would your business need to be able to meet your daily operational expenses? How much cash would you need to cater to your working capital needs?

 Image courtesy of Grant Cochrane /FreeDigitalPhotos.net

How To Find The Perfect Retirement Home For You

Muzahed I.
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How To Find The Perfect Retirement Home For You

Once you’ve made the decision to retire, you need to make other decisions about how you’re going to enjoy your retirement, what type of budget you will have, and where you will want to spend your retirement.

Many retirees realize that their home is too large, requires too much maintenance or is simply located in an area they no longer want to enjoy. Because of this, many retirees decide to move into a retirement home.

Choosing a retirement home is somewhat like choosing a regular home. There are plenty of factors to consider, and the following tips will help you find the perfect retirement home for you.

Know what you can afford.

Retirement homes cost money, so it’s important that you know your retirement budget before you start looking. You may want to buy a retirement home in that beautiful retirement community, but it may just be too much over your budget. Knowing exactly what you can afford will help you narrow down your list of choices, making the process easier.

Know where you want to live.

Make a decision on where you want to live. For example, do you want to stay in the same area you’re currently living in, or do you want to move across the country to somewhere sunny and warm? Chances are that you will spend the rest of your life in this area, so you want to make sure that you’re moving somewhere that will make you happy.

Know what you need.

Not every retirement home provides the same benefits and amenities, so it’s important for you to know what exactly you need. For example, do you want to live in a retirement community that offers lawn maintenance service? Do you want to live in a one-bedroom condo? Do you want a nearby golf course or fitness center? These are factors that will help determine where you want to live.

Know your long-term needs.

Even though you may be healthy right now doesn’t mean that you always will be. This is why you also need to focus on any long-term needs you may need, such as an assisted living program if living on your own becomes too difficult. Many retirement communities have living spaces for the healthy and another living space for those that need more attention and care. You may want to consider moving to a retirement community that offers these varying options.

Schedule a visit.

Everything looks great on paper, which is why it’s important that you actually visit the retirement home before making a deposit and signing a contract. It’s possible that the community has a great marketing department that hyped up the atmosphere and amenities. Make sure that you take the time to visit every retirement home that interests you to ensure that it’s somewhere you could live and that it contains everything you need.

Choosing the right retirement home is important. You want to make sure that you are choosing an area that you enjoy as well as a community that provides you with all the amenities and necessities that you want and need. Use these tips to help you make a more informed decision.

© Pixelthat | Dreamstime Stock Photos & Stock Free Images

IRS Interest & Penalties

Muzahed I.
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0
IRS Interest & Penalties

There are many reasons why a person might owe interest or penalties to the Internal Revenue Service. Many of them involve paying too little in taxes or paying them too late. Others relate to providing the IRS with inadequate documentation. It’s important to avoid these mistakes when making payments and filing annual tax returns.

Insufficient Payments

Paying Too Little

Taxpayers can be fined for paying too little. This often happens by mistake when people make math errors on their tax returns. The IRS might only charge interest if the underpayment was caused by a minor mistake. However, it can add penalties if a person makes major errors or appears to deliberately pay too little.

Wrong Withheld Amount
The IRS also charges interest and penalties if a taxpayer has too little money withheld from his or her weekly paycheck. This can also happen if a self-employed person’s quarterly estimated payments are too low. To avoid fines, American taxpayers should owe no more than $1,000 when filing tax returns in April.

Paying Late
The government can penalize a taxpayer for paying late as well. This will happen if a tax return that includes a payment is postmarked after April 15th. There is also a penalty if the IRS receives payment on time but the taxpayer’s bank account has insufficient funds. In this situation, the person will be subject to an overdraft fee as well.

Inadequate Reporting

The IRS will charge penalties and interest when an individual does not file a yearly tax return. Although the fines will not be as harsh, the same holds true if it is submitted after April 15th. Some college students, retirees and unemployed people have little enough income that they are not required to file returns.

Unreported Income

Americans also face IRS penalties when they don’t report part of their income. Some people hide money in foreign accounts, don’t pay taxes on tips or get paid “under the table.” Firms that fail to report payments to employees can also get in trouble. It’s particularly important to report large prizes and gifts from foreigners.

Fraud
The IRS reserves its harshest penalties for individuals who commit fraud. These taxpayers deliberately conceal income or exaggerate expenses. The IRS might consider it fraud if a person tries to misuse credits or deductions, such as the earned income and fuel tax credits. The taxpayer may also be barred from using these credits.

There are various other reasons why the IRS might demand interest and/or penalties. This can occur even if there is no underpayment or lateness. Tax preparers may be penalized for making mistakes or helping taxpayers commit fraud. Also, there are fines for taxpayers who fail to send various reports and documents to the government.

To avoid penalties and interest fees, it is vital to carefully follow all instructions and leave extra time to finish tax returns. Keep in mind that it’s better to file a return with no check or a partial payment than to not file at all. Additionally, the IRS may cancel penalties if an unexpected event prompted the lateness.

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