Taxes Don’t Have to Be Terrifying 

Taxes can be overwhelming — even for the most organized people. Life gets busy, paperwork piles up, and one missed form can snowball into a big problem. But here’s the good news: most tax issues can be prevented or fixed with the right strategy and support. 

At KARME Financial & Business Services, we specialize in helping taxpayers take back control. Let’s look at the most common tax problems, why they happen, and what you can do to fix them. 

Failing to File on Time 

If you miss the April 15 deadline, the IRS charges a failure-to-file penalty of up to 5 percent per month on any balance due. 

What to do: File as soon as possible — even if you can’t pay. Extensions delay filing, not payment. 

Pro tip: Behind on past returns? Get caught up fast at KARME

Owing More Than You Can Pay 

Unpaid taxes gather interest daily. The longer you wait, the higher the bill grows. 

What to do: Explore an Installment Agreement or Offer in Compromise. KARME can help you negotiate affordable options and protect your assets. 

Underpaying Estimated Taxes 

Freelancers and small-business owners often forget quarterly estimated payments — leading to surprise balances. 

What to do: Use our Self-Employment Tax Estimator at Karme to calculate your quarterly payments accurately. 

Errors on Your Tax Return 

One wrong number or filing status can delay refunds or cause an IRS correction. 

What to do: Double-check your entries before submitting, or have KARME review your return for 100 percent accuracy. 

Ignoring IRS Letters and Notices 

Avoiding IRS mail only makes things worse. Every notice includes a response deadline and a code that tells you what’s wrong. 

What to do: Don’t panic — open it and reach out for help. Upload your notice at Karme for a secure professional review. 

Unreported or Misreported Income 

The IRS already receives your W-2s and 1099s. If your return doesn’t match, expect a notice. 

What to do: Track all income — including gig work, digital payments, or rental apps and report everything accurately. 

Claiming the Wrong Credits or Deductions 

Over-claiming or missing credits can both cost you. 

What to do: Keep documentation for every deduction. A KARME preparer can confirm eligibility and find additional savings you might have missed. 

Identity Theft & Fraudulent Returns 

Tax identity theft happens when someone files using your SSN. 

What to do: File early, protect your data, and request an IRS IP PIN. If you’re a victim, KARME can guide you through recovery. 

Poor Recordkeeping 

Missing receipts or disorganized records make audits and deductions harder. 

What to do: Go digital — scan and store receipts monthly. Reliable bookkeeping saves you time and money. 

Major Life Changes Without Planning 

Marriage, divorce, or starting a business all change your tax picture. 

What to do: Schedule an annual Tax Check-Up at KARME to adjust your strategy as your life evolves. 

The Bottom Line 

Tax problems happen — but they don’t have to define your financial future. The difference between stress and success often comes down to awareness, organization, and expert help. 

At KARME Financial & Business Services, we help taxpayers resolve IRS issues, prevent penalties, and regain peace of mind. 

Don’t wait for the IRS to make the first move — make yours. 
Take the stress out of tax season and regain control of your finances today.