How to Avoid Discrepancies on Your Tax Return
One of the very biggest red flags for the IRS are those pesky, but oh so common discrepancies on your annual tax return. It can happen very easily…inverted numbers, arithmetic errors and keying errors are some of the most common reasons for discrepancies. You do not want to put yourself at an increased risk for an IRS audit, so we have pulled together some of the easiest ways to avoid these types of discrepancies:
1. Double check your personal information:
It is both the simplest piece of advice and the most often ignored. After you have completed your annual return, leave it for a bit before submitting and come back to it with a fresh set of eyes. Spend a few extra minutes double checking your personal information, address, social security numbers, and be sure that your return matches your tax documentation (W-2s, 1099s, etc). When your social security number is incorrect or your income does not match your W-2, your tax return will be flagged and at best your refund will be delayed. These types of discrepancies may seem trivial to you, but they can make it look like you are not being truthful or forthcoming on your return.
2. Check your math:
It worked in school, it also works with your taxes. Double checking simple arithmetic is essential before you submit your taxes. You do not want to give the IRS the impression that you are trying to manipulate your numbers to look larger or smaller. A calculator or tax software can be particularly helpful with math errors, so take the extra time to be accurate.
3. Be honest:
It never pays to be less than 100% truthful on your tax return. There are simply too many ways that the IRS can sniff out a discrepancy and you can quickly find yourself in a mess. Be honest from year to year, return to return so that you keep it clean and can back up your return if questioned.
4. Get help when you need it:
Many taxpayers inadvertently include discrepancies in their tax returns because they simply do not understand what they are doing on that area of the return. There is no shame in this. Taxes are complicated and when you have major life changes from one year to the next, your taxes can get tough in a hurry. So, if you are completing your tax return this year and just do not feel comfortable or confident in your work, get help. Ultimately, it is much simpler and more cost effective to get help on the front end than risking an audit.
Success Tax Relief can eliminate discrepancies on your return
If you would like a second set of eyes to review your tax return this year before you submit, contact Success Tax Relief today. There is still plenty of time before the April 15th deadline, so rest easy, we can still help. Success Tax Relief has more than 30 years helping thousands of clients all over the country submit accurate tax returns in a timely manner. So, don’t risk minor discrepancies on this year’s return raising a red flag with the IRS. These errors are preventable – so do a little more on the front end, so you can breathe easy come April!