Common Mistakes Taxpayers Make in Tax Preparation

Posted on February 21, 2024

Common Mistakes Taxpayers Make in Tax Preparation

Filing errors made by taxpayers can often lead to unfavorable IRS corrections. Claiming deductions and credits that a taxpayer does not qualify for can lead to a tax debt. If there is an understatement of income that the IRS believes might be intentional, then they may conduct an audit.

The most common errors taxpayers make come from miscalculations. When the IRS corrects these types of mistakes, a tax debt may be assessed. If the filing deadline expires before the balance is paid, the IRS will begin to charge penalties and interest each month. The IRS sends notices to inform taxpayers about any corrections on their returns, regardless of whether they lead to a tax liability.

Some other common errors in tax filing are forgetting to sign the return, including incorrect account numbers for direct deposit, misspelled names, incorrect or blank Social Security Number, filing status mistakes, and omissions of additional income.

Taxpayers are encouraged to thoroughly review the information on their returns before filing. This suggestion is extended to those who enlist professional preparers to handle their returns. Double-checking the smallest details can be critical in mitigating the likelihood of return errors.

 

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