Avoid These Common Mistakes By Consulting With A Tax Attorney
Failing to accurately report income is one of the most common tax mistakes. In most cases, you will only face an accuracy-related penalty if your income is substantially different than reported. However, penalties for tax evasion are steep — including criminal charges and large fines.
Mistakes in business tax practices
Businesses encounter many of the most common tax mistakes. If your business encounters payroll issues or fails to keep records to support deductions claimed on tax filings, there could be trouble down the road. There are also state tax considerations that are important to pay close attention to.
Improperly claiming dependents
Another common mistake occurs when a dependent is claimed by one parent when they have already been claimed by the other. Make sure to communicate with your child’s other parent as well as lawyer or tax professional to ensure the dependent is not improperly claimed.
Failing to file on time
Missing the filing deadline for taxes may not seem like a big deal, but failure to file in a timely manner can put you in hot water with the IRS. Taxpayers can file for an extension, which allows an additional six months to complete your return. But, those owing money in taxes still must pay by the April deadline.
Ignoring IRS correspondence
No one is excited to see a letter from the IRS in their mailbox, but it is important to respond to correspondence relating to your taxes. Failure to do so can make a simple situation much more complicated.