Wanting to file taxes quickly may not be as beneficial for taxpayers, since They can make a number of mistakes that get them in trouble with the Internal Revenue Service (IRS).
The consequences can impact your tax refund, that you do not get to receive it or that, failing that, you end up owing more money to the Internal Revenue Service.
Omitting a tax deduction, writing the wrong bank account or having accumulated penalties for not paying taxes, can be some of the situations that can put you in trouble with the Internal Revenue Service.
However, there is more. That is why we are going to tell you what are some of those mistakes that may seem simple but that at the end of the day can cost you dearly.
1.- Tax exemptions
There are various tax exemptions that were recently approved in the Donald Trump administration, due to the economic crisis that Covid-19 has generated.
Many taxpayers do not make use of them, that is, they do not request them and they would be qualifiable. Among the most prominent is the Child Tax Credit and the Earned Income Tax Credit.
Taxpayers have to understand that obtaining these tax benefits is not done automatically, so they will have to work on it.
2.- Not submitting the tax return on time
The closer you are to the closing date of the tax season, which is April 15, the less time you will have to do certain reviews, collect the necessary documents and correct errors.
3.- Being a victim of tax scams
When tax season is open, fraudsters are most active. And now they are taking advantage to collect unemployment benefits with false statements.
So be careful and file in good time, as they won’t be able to file a tax return for you.
4.- Wrong bank account and address
You must pay close attention to the information that you have registered with the IRS, since they are what they will use to deposit your refund and the part of the stimulus check that you lack.
The same if you wait for a paper check, you must ensure that it is the correct address or make the pertinent changes before you send the tax return.
5.- Send unsigned forms
If you don’t sign your tax forms, the return is invalid. If you are filing with your spouse, both of you must sign.
6.- Skip income
It is the most important mistake of all, if you do not declare everything you earn, the IRS can do an audit, charge you what you owe, apply a fine and also punish you with the payment of interest.
You may also like:
-Why your taxes will be a big problem if you moved to a new state because of the crisis
-How the $ 3,000 Child Tax Credit will affect your taxes
-What to do if when reviewing your tax refund, you get a notice that your “tax return is in process”
-How to get your child to have a large savings and can use it tax-free, saving only $ 25 per day
-The IRS is Paying Millions of Dollars in Interest for Delaying Tax Refunds – How the Payment Works
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.