If there are mistakes on a tax return, it could lead to negative consequences for a taxpayer. In some cases, it could result in paying more money to the IRS in the form of back taxes owed, a fine or a late fee. Let's take a look at some common tax errors people make and how you can avoid making them.
Your Personal Information May Be Incorrect
The IRS will ask for a variety of personal information such as your full name, social security number and address. If any of this information is wrong, it could result in a return being rejected. Those who use an accountant in Las Vegas should have that person import such information from previous tax returns to ensure that it is correct when it is sent to the IRS.
Income Is Not Reported on a Return
Most taxpayers have a variety of income sources that they must report to the IRS each year. These income sources could include interest from a bank account or capital gains from stocks that were sold in the past year. Those who make a profit from gambling or make money as a freelancer will need to report that income as well.
Failure to do so could result in the IRS imposing a financial penalty. Remember, the IRS generally has up to three years to audit a return, and that deadline can be extended permanently if the government has reason to believe that the error was made willfully.
Tax Returns Can Be Amended After They Are Submitted
It is possible to amend a tax return after the original has been submitted to the IRS. In some cases, doing so can work in the taxpayer's favor as correcting a mistake could lead to a bigger refund. Typically, an amended return must be submitted to the IRS through the mail as opposed to electronically.