Be sure to avoid these common errors this tax season

Every year, countless taxpayers fall victim to the same filing traps, which can result in delayed refunds and much-dreaded audits. And, with all of the regulation changes put in place this year, both on the federal and state level, it is all the more important for everyone to avoid some of the most common pitfalls.

It is officially tax season any many financial publications and websites have covered some of the errors that may make this tax season all the more complicated.  Here are a few:

Misrepresenting your household status

One of the most common errors is claiming the wrong tax filing status.  This may result in an underpayment because tax exemptions differ depending on the tax filing status.   A lot can change in a year, and, due to the slowly recovering economy, many people have either had to take in their adult children or care for elderly relatives. Both of these scenarios come with new expenses that can potentially be a benefit on your tax return.

Overlooking new regulations

As this blog has thoroughly documented, the Internal Revenue Service (IRS) has enforced many new regulations to crack down on tax delinquency – particularly in regards to offshore tax compliance. Depending on the financial value of your international assets, you may be required to fill out separate disclosure forms, some of which are not part of the tax return. In addition, new declaration methods have been put in place for online payments received.

Waiting until the last minute

Waiting to the last minute for your tax preparation may lead to missed deductions or missed tax benefits.  Especially if you don’t have your forms handy and are running up against a deadline.

If you have any concerns about your tax return this year – whether you’ve held multiple jobs or aren’t sure how to properly declare your assets – don’t hesitate to call us and get your tax questions answered.

Moskowitz LLP, A Tax Law Firm provides tax planning advice for individuals and businesses in virtually all areas of federal and state tax.   Our tax practice provides tax planning advice how to minimize the impact of individual federal and state income tax liability, properly establishing a subchapter C and S corporation, properly structuring international inbound and outbound transactions, taxation of pass-through entities such as partnerships and limited liability companies, and comprehensive estate planning.

We also offer our clients independent counsel concerning multi-disciplinary tax related areas such as complex issues associated with captive insurance companies, trust with multi-jurisdictional beneficiaries, and corporate regulatory matters.

 

Disclaimer:  Because of the generality of this blog post, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Prior results do not guarantee a similar outcome. Furthermore, in accordance with Treasury Regulation Circular 230, we inform you that any tax advice contained in this communication was not intended or written to be used, and cannot be used, for the purposes of (i) avoiding tax related penalties under the Internal Revenue Code, or (ii.) promoting, marketing, or recommending to another party any tax related matter addressed herein.

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