Common Mistakes People Make When Filing Taxes
Most business owners and individuals find the process of filing taxes intimidating. But this is something that none can ever avoid. Before filing for taxes, people tend to seek advice and bank on the available resources at their disposal.
However, believing each piece of information that comes one’s way can have serious repercussions. This is why it is recommended to have a trustable source. Hiring a professional can save you a great deal of time and energy and assist you with the entire tax filing process.
To help you avoid some basic errors that could prove costly, Fresh Start Tax Relief Services has put together a list of the most common mistakes people make when filing taxes.
1. Claiming dependents to avoid paying taxes
You need to take care that you claim a dependent only if they are your dependent. Many people try to claim dependents who are not dependents, such as an adult child who does not live with them or a grandchild. This is considered tax fraud and can result in severe penalties. Even if the IRS does not catch this fraud immediately, the chances are that the defaulters would receive a letter in the mail many years later demanding repayment of the tax amount. This time the tax amount will include penalties and interest.
2. Failure to file taxes on time when you know you will owe IRS
Even if you cannot pay the taxes, you must file tax returns on time. Because regardless of the fact whether you have money to pay them or not, you will have to pay the penalty and will also be charged with a failure to file a penalty. It is best to file on time and pay what you owe. The IRS will be willing to cooperate with you.
3. Not filing tax returns for multiple years in a row
If you fail to submit your tax returns, the IRS will do so. They will charge you fines and interest on the dues. If you haven’t been able to file in a few years, do it as quickly as possible to ensure that you get all of the deductions that you are entitled to.
To avoid these and other mistakes, reach out to the experts at Fresh Start Tax Relief Services.
We help clients with tax relief, tax resolution, tax settlement, and tax liability.
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