6 Common Mistakes That Result in IRS Problems
Not Educating Yourself
This is the number one mistake that creates the most tax problems for anyone! Not educating yourself can cost you time and money correcting what has been neglected. This is the kind of learning curve you want to avoid! Do not wait to educate yourself on basic tax laws before it’s too late. For, an annual filing that could’ve been a refund may very well turn into an amount owed.
Not Reporting Taxable Income
Many taxpayers believe that when filing their annual taxes that they don’t have to report income that’s not included on a W2. This is a myth! The whole purpose of annual tax filings is to report the entire amount of money each household earns and spends. The Internal Revenue Service (IRS) requires that all income must be reported as part of your gross income. If you haven’t received a W2, then businesses are required by law to provide a 1099. However, if the amount distributed is less than $500, the business does not have to provide a 1099. Nonetheless, you as the recipient taxpayer are still obligated to report that additional income.
Not Filing Annual Taxes
Not filing your annual taxes is a big mistake! Whether you owe or are entitled to a refund, it is required by law to file your annual taxes. The IRS takes this seriously as this makes the United States budget inaccurate.
Whether in the surplus or grossly in debt, the United States is diligent in making sure that their books are accurate. Since the US is in debt, they are especially earnest in making sure that they know exactly how much money is in their account so they can pay off their own debt! They don’t like it very much if citizens are indifferent about their taxpayer responsibilities. Neglecting to do so could result in paying additional penalties and interests.
a. Late Filings
Submitting a late filing is better than sending nothing at all. Nonetheless, it’s still a problem. The best way to avoid a late filing is to make sure that you file and submit your annual tax filings before the due date.
Entering Incorrect Information on Your Annual Taxes
The IRS processes thousands upon thousands of submitted tax filings—including the late ones! If there is any type of discrepancy, even a social security number that has been entered incorrectly, it will delay the entire verification process, including your refund, if you’re entitled to one. Before submitting your annual tax filing, verify that all of the information entered, names, address, social security numbers, etc. is correct.
Falsifying Information on Your Annual Taxes
Falsifying and mis-entering information tax information—there is a difference. The IRS is understanding when it comes to honest mistakes, but not so much when it comes to out right lying. The best way to avoid this kind of problem with the IRS is to enter your information honestly.
Neglecting to Pay Owed Taxes
Refusing to pay the IRS what you owe can turn into a big problem that could result in serving jail time. The best possible way to avoid this kind of tax problem—pay what you owe!
Success Tax Relief is located in Texas, 30 minutes from Houston, but we service clients from all over the United States. Our business is all about talking to the IRS on your behalf, resolving any issues you may have. If you want to learn more about what you can do to avoid any mistakes with the IRS, contact Success Tax Relief at 1-877-825-1179 or online to get the most out of your tax return.