RUSHING THROUGH YOUR TAX RETURN Penalties, interest and missed tax-saving opportunities could result from your lack of focus and attention. Remember that the IRS will look back on your return in 1.5 to 3 years with perfect 20/20 hindsight looking for anomalies. For INDIVIDUALS, pace yourself and get everything necessary in your return. For BUSINESSES, begin with our Business Tax Information Organizer, get a handle on every cent of income and expenses and make sure your reporting story to the IRS comes out logically and to the penny.

INCORRECT TAX ID NUMBERS Your personal social security number or business tax id number need to be checked and double checked along with a careful double check of the tax id number on  your mortgage interest recipient, other 1099 or K-1 statements  given to you by a broker or income provider. A mistake here could delay your return or cost you a tax credit or deduction. Use the IRS label if possible. If it is incorrect, still use the label and hand correct any necessary changes.

USE THE CORRECT FORM There are hundreds of IRS forms that might apply to your situation. If you go to irs.gov and type in “Forms and Instructions”, your head will spin at the many form choices presented to you. Just look at the IRS links section of our web site which contains the menu of 1040 Forms available for use.

ATTACH ALL REQUIRED FORMS Not including a W-2 (Copy B), 1099-R (Copy B) or maybe not volunteering a 1099-C (Debt Cancellation) could delay or flag your return for further examination upon arrival. The IRS wants to view you as a digital image. You want to maintain your privacy and anonymity. There is an art to getting the required forms and the paraded before the IRS volunteered forms attached.

UNREPORTED INVESTMENT INCOME The IRS already has your social security number. It already knows your interest and dividend income and has more than a reasonable expectation of what you owe in long and short term capital gains. What they don’t have is YOUR point of view on that investment income. Take charge and stay on top of the situation. Spin the story your way – to your advantage.

TAX TABLE ERRORS Misreading the tiny print in tax tables or transposing the numbers on your return is common. Misunderstanding in calculating entries using IRS worksheets (like Schedule D or in Counties that have a different tax rate than the State when you are trying to figure your state Sales Tax deduction) can delay your return, or worse, have the IRS figure what they think you are trying to do and calculate it for you and adjust your refund accordingly. Have someone other than you review each step followed on your return.

MISSING SIGNATURES The IRS won’t process a return that lacks a signature. 1065 returns requires a signature in at least two places. If you wait until the last minute to file, it could cost you a penalty on taxes due to get the return returned to you for that missing signature. If you owe taxes, sign your check and make sure it is payable to the “US Treasury” and NOT to the IRS.

TARDINESS The failure to file penalty is generally 5% of the tax owed for each month, or part of a month, for up to five months (maximum penalty of 25%). If your return is more than 60 days late, the minimum penalty for late filing is the lesser of $100 or 100% of the tax owed. If you are running out of time to file, file the Application for Automatic Extension of Time to File… form for your business or personal tax return which may at least abate or delay the penalties charged for an after due date filing.