Mistakes are a common occurrence while filing tax returns for the first time. However, a simple mistake can result in more taxes, fine, or interest being owed. You might not get your entire tax refund due to some mistakes in unfiled tax returns. Moreover, you might also have to face the IRS to conduct an audit if there are mistakes on your return.
Therefore, to avoid all such complications, it is best to avoid making common mistakes while filing unfiled tax returns. Taking the help of a professional is a good option so that your returns are filed carefully and there are no future problems with the IRS.
Avoid making mistakes while filling in the basic information
Double-check your general information to make sure the spelling of your name and security number is written correctly.
- Look for errors and spelling mistakes.
- Choose the correct option of filing status on your tax return.
- Filing under unfavorable status may cost you money.
Reporting correct information on the return forms
Check the information provided in the forms W-2, 1099, and K-1 as reported exactly to the IRS. Your tax return information should always match the information stated on these forms. Request for a correction if you notice any error on your information return forms.
Explore all options
Choosing the standard deduction on your tax return might incur expenses. Thoroughly research all of your options before filing any unfiled tax returns and choose standard deductions only if it is the only option left.
Claiming the deductions
Most individuals fail to claim the deductions in their unfiled tax forms since they do not do it correctly. They fear that using certain tax deductions might result in an IRS audit. However, it is advised to avail of the deductions if you are eligible under the law as a taxpayer and not lose out on the benefits.