Still procrastinating on taxes? For even the most
together taxpayers, filing taxes can be stressful. One little mistake can hold
up your return and could even result in fines, fees, and penalties. Here, we’ll
explore some of the most common (and costly!) tax return mistakes and what you
can do to avoid making them on your return.
Late Filing and Payment Fees
Taxes have a due date- April 15th. If you file
them after that due date, then you immediately start accruing late fees. The
same goes for payments that are due to the IRS. If you don’t pay when the
payment is due, you can expect to wrack up some pretty heavy costs.
The good news is that, more often than not, you can avoid
late fees. The easiest way, of course, is to avoid making payments and filing
taxes late! When that’s not possible, contact the IRS to find out what your
options are. If you can show proof that paying or filing on time wasn’t
possible, you may be granted an extension. The IRS is usually more than willing
to work with those who are trying to pay- even if they have to pay a little
late.
Forgetting an Account
Many people have several different types of bank accounts,
and it’s their job to report all of them to the IRS. To keep from forgetting
all of your accounts, keep a detailed list of the accounts and their amounts.
If it’s too late for that and you’ve already skipped over an account on
accident, don’t panic.
You can file an amended tax return or simply send the
correct information to the IRS with a quick note of explanation, Sometimes, the
IRS may impose a small fine, but usually it will just be glad to have the
correct information and will add it to your file.
Not Paying in Full
Finally, not paying taxes in full, known as underpayment,
comes with some pretty serious penalties of its own. To avoid these penalties
and potential legal action if the situation is really bad, make sure you
honestly and accurately file your returns each year and that you pay what is
due when it’s due.
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