By Sheryl Rowling
SAN DIEGO — It’s Passover and tax season – not a rare occurrence, yet I’m surprised by the intensity each year nonetheless. With the brain of a CPA inundated with tax returns, I’ve come up with some holiday financial ideas. Let’s look at some typical financial stresses this time of year:
Help! It’s almost April 15th and I don’t have my tax return done! Our ancestors didn’t wait around – even if it meant having to eat unleavened bread. But, if eating matzo eight days in a row is making you sluggish, you can always go for an extension. If you don’t owe money, you don’t even have to file anything. Uncle Sam will let you put it off until October 15th.
I owe money with my tax return. You could beat the kids to finding the afikoman. Maybe the ransom money will be enough to cover the shortfall. If that won’t work, you can always go for an installment payment plan. The IRS will charge interest, but the option is automatically approved if you owe less than $10,000 and can pay it off with monthly payments within three years.
I don’t understand the tax laws. It doesn’t matter if you’re wise, wicked, simple or afraid to ask questions, nobody understands the tax laws! They just don’t make sense. Even without trying to make sense of the rules, a CPA knows them and how to apply them. You will likely get more than your money’s worth by using a professional.
I’m afraid of being audited. You should drink four cups of wine and relax. In reality, your chances of being audited are less than 0.10%. As long as you are not claiming 20 exemptions or neglecting to report your wages, most audits are random – and straightforward.
As we celebrate freedom during this holiday of Passover, “tax freedom day” falls on May 3rd for Californians this year. Chag Sameach!
*
Sheryl Rowling is a certified public accountant, personal finance specialist, and principal of Rowling & Associates. She may be contacted via sheryl.rowling@sdjewishworld.com