What Could Happen If You Make A Mistake Filing Your Own Taxes
Everyone is obligated to file their personal income taxes every year by April 15th. Not only must it be done on time, but you must file your taxes accurately to avoid potential consequences. While many people file their taxes on their own, it may help to use a tax preparation service to handle it all for you. Here are some things that can happen if you end up making mistakes when preparing your own taxes.
Increased Audits
Filing your income taxes incorrectly will raise a red flag with the IRS and cause you to be audited. In the future, your taxes are more likely to be scrutinized by the IRS since you received one audit, which can lead to future audits. It is a stressful and time-consuming process that you may prefer not to go through since you will need to resolve the situation when it happens.
Penalties
Not filing your taxes incorrectly means that you did not pay your fair share, and there is still money left to pay to the government. The IRS is not going to let it slide and simply pay the missing amount. It is likely that you'll have to pay penalties and additional interest on the amount that you came up short in paying your taxes. You'll end up paying more than you originally would have, just because you made a mistake when filing.
Delayed Refunds
Sometimes the mistakes made lead to an overpayment, which results in getting a refund back from the IRS due to the taxes you paid by mistake. However, this is a bit different than having too much money withheld from your paycheck. An overpayment due to a filing error means that the error needs to be found and corrected, which can take quite some time. This delays when you receive that refund check, and you will not get interest on the money while the government has it.
Missed Deductions
A mistake can be made by missing out on a tax benefit when filing. This can lead to paying more in taxes purely because you did not know there was a deduction, credit, or exemption that reduces your overall tax liability. These mistakes won't be caught by the IRS, but you'll simply not get the deduction. A tax professional knows all the common deductions that people take and can ensure that you get all the tax breaks that you deserve.
For more information, contact tax preparation services today.
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