Avoid Common Mistakes That Can Get You into Tax Trouble
No matter your filing status – personal or business errors on tax forms can lead to tax issues.
Something as innocent as a math error or missing signature can invite extra unwanted attention from the IRS. The IRS looks for mistakes as an excuse to dig deeper and institute an audit. Always double-check your entire form before mailing or hitting send.
Never Assume That Your Tax Professional Prepared Your Taxes Properly
We pay tax professionals to do their job and do it well, but you should still never blindly trust any accountant or tax preparer. You are the one signing off on it. You are the one who will suffer consequences if it is inaccurate and triggers red flags.
Never Wait Until the Last Minute
Tax time is stressful. You do not need to make it worse by procrastinating until midnight on April 15 to get your return in the mail. Give yourself ample time to gather all documents and complete your return.
Filing Late
If you cannot file on time, make sure you get an extension. Filing an extension gives you six more months to get everything in order and complete your return.
Most people do not realize that you will still need to estimate the tax you owe and make your payment, even if you file an extension. Filing an Extension extends the amount of time you must get your return to the IRS, but it does not provide a reprieve from your tax debt. If you wait to make your tax payment, you will accrue penalties and interest.
Keep Good Records and Create a Backup
Making a copy of your tax returns, income documents and schedules is an essential part of tax preparation. Set up a file box and use it to store your documents as they come in. Then scan each one before you file it.
Once you have completed your return, be sure to make copies of that as well. Include your W-2 form and tax schedules before sending the return to the IRS. If you file electronically, be sure to save a PDF copy of your return before completing the final step. Save all those electronic tax documents on your computer or cloud storage device. Ordering a lost copy of a past year’s return from the IRS is time-consuming and expensive. You can save time and money by making your backup copies. If the IRS audits you or requests more information from you, all your records will be helpful in the process.
Ignoring Letters from The IRS After You File Your Taxes.
Often the IRS will send follow-up letters if you owe them money. It can be easy to ignore the first few envelopes. Even if you have the intention of paying soon you should still initiate an installment agreement or reach out to a tax relief firm.
OWE BACK TAXES?
Our firm specializes in tax problem resolution. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm. We will schedule a free no-obligation confidential consultation to explain your options that can permanently resolve your tax problem. Call us today at 239-300-9492 or visit our website at www.babbitttaxlaw.com.