It has been said that ‘to err is human, to forgive, divine’. However, some people have found out the hard way that the IRS is less forgiving when that mistake involves a person’s tax return. Though the government might offer some kind of leniency to those who take the necessary steps to fix the mistake immediately, it can still invite an IRS Audit, especially if your total income is between $200,000 and $1 million. The IRS is even stricter with those who run their own business since there are some who wrongfully declare their business’s income and expense to claim exemptions.
Despite the fact that hiring a qualified tax preparer from a reputable CPA firm does not guarantee that your return will be 100% error-free, it can still greatly reduce the probability that you’ll be committing these tax filing mistakes. It will also help you avoid the possibility of seeing the IRS on your doorstep.
Preparing Your Tax in Tax Season
Even certified public accountants with years of experience under their belts don’t wait until the last minute to do their own taxes. When it comes to tax preparation, cramming is the last thing that you should do. While it’s important to file your taxes on time, it’s even more important to file them accurately. Cramming can only increase the chance of math calculation errors, which is the most cited reason for receiving a notice from the IRS.
Insisting That You Can “Do It Yourself”
You may be a math genius, but that doesn’t make you an expert in dealing with tax returns. You have to understand that filing taxes also requires that you actually understand the numerous laws and legislation behind it. A CPA with years of experience in tax preparation can help you identify and fill out the correct forms and check whether you are eligible for specific exemption claims.
Not Investing in a Qualified CPA Firm
Whether you’re a private individual or an organization, you will most likely need an expert to help prepare your tax returns. Don’t think that you are wasting your money by hiring an experienced CPA to get your tax returns right. Tax preparation can be downright complicated. It helps to know that you have a tax preparation expert who will keep the IRS from nosing into your business on your side.
When you prepare you taxes haphazardly, you tend to make simple mistakes that could lead to serious consequences, such as a dreaded IRS audit or hefty fines. If you cannot set some time aside to sit down and do your taxes properly, then it’s better to hire an expert to do it for you.
Inaccurate Tax Return, Now What?, Investopedia.com
10 common tax-filing mistakes to avoid, BankRate.com