6 Common Mistakes When Filing Taxes That are Easy to Avoid (2024)

FAQs

6 Common Mistakes When Filing Taxes That are Easy to Avoid? ›

For example, you might: forget to sign and date your return. not put enough postage on the envelope. send your tax return to the wrong IRS office.

For example, you might: forget to sign and date your return. not put enough postage on the envelope. send your tax return to the wrong IRS office.

Make sure that your basic information—such as your name, Social Security number, and filing status—is correct and that financial information is reported on the correct line. Always proofread your tax return and fix any mistakes or typos.

Does the IRS Check Every Tax Return? The IRS does not check every tax return; in fact, it does not check the majority of them; however, the IRS implements methods that track certain factors that would result in a further examination or audit by them.

By carefully reviewing their return, taxpayers can save time and effort by not having to correct it later. Filing electronically also helps prevent mistakes. Tax software does the math, flags common errors and prompts taxpayers for missing information. It can also help taxpayers claim valuable credits and deductions.

A misplaced decimal point, an extra or missing zero or even a simple addition or subtraction error can delay your refund or lead to a smaller refund than you were expecting. If you aren't good at math, you may want to have someone check the math on your return. Mathematical errors are common tax return mistakes.

The IRS receives copies of your W-2s and 1099s, and their systems automatically compare this data to the amounts you report on your tax return. A discrepancy, such as a 1099 that isn't reported on your return, could trigger further review.

Use your online account to immediately view your AGI on the Tax Records tab. If you're a new user, have your photo identification ready. Use Get Transcript by Mail. You can also request a transcript by mail by calling our automated phone transcript service at 800-908-9946.

The IRS reviews some federal tax returns to determine if income, expenses, and credits are reported accurately. The IRS selects returns for review using various methods; including random sampling, computerized screening, and comparison of information received by the IRS such as Forms W-2 and 1099.

If you need to make a change or adjustment on a return already filed, you can file an amended return. Use Form 1040-X, Amended U.S. Individual Income Tax Return, and follow the instructions.

What income is most likely to get audited? ›

Who Is Audited More Often? Oddly, people who make less than $25,000 have a higher audit rate. This higher rate is because many of these taxpayers claim the earned income tax credit, and the IRS conducts many audits to ensure that the credit isn't being claimed fraudulently.

Signs You May Be Under Investigation

Your IRS auditor seems to disappear without explanation. You or your bank gets subpoenaed for financial records. You stop getting the typical notices the IRS sends for things like penalties and interest. You get a surprise visit from IRS criminal investigation agents.

6 years - If you don't report income that you should have reported, and it's more than 25% of the gross income shown on the return, or it's attributable to foreign financial assets and is more than $5,000, the time to assess tax is 6 years from the date you filed the return.

Filing an incomplete tax return

A common cause of delayed tax return processing, leading to delayed refunds, is missing information on the return. "Failure to include basic information, such as the Social Security numbers of dependents, can significantly hold up a refund," according to Lee E.

Generally, if you earn less than the Standard Deduction for your applicable filing status, you don't need to file unless you have special tax circ*mstances. Not filing a return when you should can result in penalties and fines from the IRS.

Taxpayers fail to pay hundreds of billions of dollars in taxes every year. This tax gap—the difference between tax amounts that taxpayers should pay and what they actually pay voluntarily and on time—has been a persistent problem for decades.

Unfortunately, according to the Internal Revenue Service (IRS), nearly 17 million mathematical mistakes were made on tax returns in 2022 alone. While some of these mistakes can be minor, others can cost you significant money.

Much of it has to do with the U.S. economy, according to Marilynn Grossman, Professor of Taxation and editor-in-chief of the Tax Law Review. “We're a very sophisticated, complex economy and that requires a very sophisticated tax system,” Grossman told NPR in an interview.

“The only thing certain in life is death and taxes… but at least death doesn't get worse every April.”