Tax season is upon us once again and many individuals and businesses are struggling to make sure that all of their obligations to the Internal Revenue Service are fulfilled. You not only need to be accurate and timely when filing tax returns, but you also cannot afford to make errors that could trigger an IRS audit. A mistake can lead to you owing back taxes, interest and penalties. Avoiding mistakes is essential, however, if you do end up making errors, you should get Boca Raton IRS tax audit help from the experienced professionals at East Coast Tax Consulting.
Avoid Making These Mistakes With Your 2015 Tax Filing
The tax code is quite complicated and there are hundreds of mistakes a tax filer could potentially make. Some of the most common mistakes include:
- Math errors. Although tax preparation software has helped, math mistakes are still common on tax returns. You must still enter the correct numbers. For example, entering $2,500 when the amount is really $5,200 creates a significant tax difference. If your math mistake results in you paying more taxes than you should, it is unlikely it will be caught and you will probably never get that money back. If the math mistake means you shortchange the IRS, then if the error is caught, you could end up owing additional taxes along with interest and penalties
- Automatically taking the standard deduction. It takes more effort to itemize your deductions on your return, but depending upon your financial situation, you could end up getting a much bigger write-off if you itemize. If you do itemize, you’ll need to keep receipts and proof of the deductions you took.
- Failing to enter all information accurately and inputting info on the wrong line. When you get a 1099, W-2, K-1 or other information return, you need to ensure that you enter the information from those forms accurately on your tax return. The IRS is looking for discrepancies on what you report based on what employers, banks and others have reported they paid you. A mistake in inputting information, or even entering information on the wrong line, could be a red flag that brings your return to the attention of the IRS and triggers an audit.
- Filing status. Choosing the right filing status for your family situation can make a difference in your tax bill. Perhaps you qualify for head of household status with its beneficial tax rates rather than single filing status. Married taxpayers normally file joint returns, but what if you belief your spouse is not reporting all of his or her income? You may want to consider filing separately to avoid any possible problems with the IRS. Whatever status you select, make sure you fully understand the consequences.
- Filing late. Don’t file late, otherwise you will incur hefty late filing penalties on any tax due. You can get an extension to file your return if you are not ready to submit it by this year’s deadline of April 18th. However, even if you do not submit your tax forms, you need to pay by the 18th to avoid late payment penalties and interest.
You do not want to make mistakes on your tax returns that end up costing you money. While you should do everything possible to avoid errors on your 2015 returns, you also need to be prepared to respond aggressively and assertively if the IRS claims you did something wrong. Contact East Coast Tax Consulting if the IRS is questioning your return.