Making mistakes when filing unfiled tax returns isn’t something to avoid at all costs. Erroneous tax returns have real consequences. A simple mistake can lead to a higher amount of outstanding taxes or penalties and interest. Some mistakes in unfiled tax returns can even keep you from receiving a full tax refund. In some cases, inaccuracies in your return will motivate the IRS to carry out an audit. Here are 5 mistakes to avoid when filing unfiled tax returns.
Mistakes to Avoid
Carefully filing your unfiled tax returns is the best way to prevent problems with the IRS. Getting professional unfiled tax help is one way to make sure your unfiled tax returns are free from any major mistakes.
1. Mindless Mistakes On Your Basic Information
Probably the easiest mistakes to avoid when filing your unfiled tax return, mindless mistakes can be avoided by simply verifying your general information. Make sure your name and social security number are reported correctly. Check for spelling mistakes and typos.
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It is also important that you select your filing status correctly in your tax return. Depending on your situation, filing under an unfavorable status may end up costing you money. Take a good look at all options to determine the status for which you are eligible and the best way to file.
2. Not Reporting Information Exactly How It Is Reported To The IRS
Information return forms such as Form W-2, 1099, AND K-1 should be examined carefully. The information in your tax return should always match the data reported on these forms. Make sure all reported income including your wages and bank interest match the information entered in your report. If you identify a mistake on your information return forms, request a correction rather than simply entering the correct amount on your return.
3. Not Taking Every Write-off You’re Entitled To
There are several circumstances that can warrant a tax deduction. However, many taxpayers miss out on such deductions by not making the right claims in their unfiled tax returns. The main reason is fear that claiming certain tax deductions might motivate the IRS to audit, which is not true. If you meet legal requirements for a deduction, it is advisable to take it. By not taking advantage of legitimate expense write-offs, you also miss out on tax savings.
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4. Always Taking The Standard Deduction
Automatically selecting the standard deduction on your tax return can cost you money. Even if it seems like the easiest route to take, taking the time to itemize the deduction is worth the effort. Before you file unfiled tax returns make sure you explore every option in detail. If the standard deduction seems best at the end, you can then safely proceed to select it.
5. Not Verifying Your Payments Are Credited To You
Being responsible with your tax payments is no good if they aren’t actually credited against your tax debt. When filing your tax return, make sure you include the right forms along with the payment.
Need more advice and help with your unfiled taxes? Don’t worry! At the Law Offices of Nick Nemeth, PLLC, we’ve got your back. Professional and experienced unfiled tax help goes a long way in eliminating all possible mistakes that can result in more trouble with the IRS. Just call us at (972) 484-0829 and get a free consultation.