How An Innocent Error On Your Taxes Could Cost You Thousands

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This may come as no surprise to anyone, but taxes are difficult. When you throw in having kids, owning a house, managing a business, and a marriage or a divorce, then you have a complicated problem to try and work out. Trying to do your own taxes is great, but errors can pile up and missing deductions could cost you thousands. If you have a tax liability as a direct result of a tax error, contact us for a free consultation at Inside Out Tax Resolution Services. Here are a few common mistakes when people try to file their own taxes:

Not Filing On Time

The most common error with personal income tax returns is missing the filing deadline or completely missing tax season altogether. The IRS estimates that about 20% of all taxpayers wait until just a week before the filing deadline to file their returns. This tendency to procrastinate can be costly if you run into any issues when completing your return. Even if you file for an extension, you will still need to pay any taxes owed by the original due date or you can expect to be penalized.

Incorrect Or Missing Information

Let’s be honest, we all make mistakes, but when we make mistakes on important documents like our tax returns, we could find ourselves in serious situation. If you are doing your own taxes or filling out any supplemental information on your return, always compare or directly import information from last year’s return.

Math Errors

Most of us didn’t major in math, and that means that no matter how hard we try, we are prone to simple math errors. This would be well and good if built-in formulas on the forms were easy, but taxes are notorious for being difficult to understand. From adding line items to having conditional formulas added in if your income is at a certain level, these formulas can be difficult for even seasoned tax professionals. If you have any questions about a balance due on your return, make sure you consult with a tax resolution specialist, like Inside Out Tax Resolution Services.

Not Being Up To Date On Tax Laws

Every year a slew of new tax laws are passed, making your tax journey more and more complicated year after year. Tax specialists spend a vast majority of the year studying up on the newest tax laws and preparing for the coming year’s returns.

Preparing for your next year’s taxes doesn’t have to be a full-time job. If you have any questions about what the IRS says you owe or are dealing with the repercussions of a tax issue, then come into Inside Out Tax Resolution Services today. We’ll help analyze what is going on and make sure your tax issue is resolved quickly and efficiently.