Monday, April 28, 2014

Common IRS Tax Problems Covina Taxpayers Should Avoid

By Essie Osborn


Technology has greatly improved the process of filing returns in many nations of the world. According to the IRS, since introduction of the tax preparation software there has been great improvement in accuracy. Many people do not make as many errors as before. However, some common issues remain and one ought to learn how to avoid them. By having knowledge of these IRS tax problems Covina taxpayers can work hard to avoid them thus making the filing process easier.

Levy changes can easily complicate the filing process for anyone not familiar with new regulations. This makes it necessary for taxpayers to stay alert on any changes the IRS may announce. However, it is not only unexpected cases that bring issues, but common mistakes will also catch some taxpayers off guard. Learn how to avoid these to make the process easier and avoid penalties by the levy body.

Such common errors may occur during calculations especially for those filing the returns manually. However, even when using software, filling the initial values wrongly will definitely give wrong results. There are many repercussions of recording wrong figures in those levy forms such as increase in taxes you owe, reduction in your refunds, as well as being summoned for correction of errors by the IRS.

At the same time, some people do not understand where or how to treat some entries. This is common especially in cases of special deductions and credits. Such may include deductions on taxes for people above 65 years or the blind, Earned Income Credit and others. Lack of knowledge in this area may lead to computational errors which may delay the process or result to loss of your money.

Numbers are not the only key thing when filing returns; words matter too. In this case, any mistakes in spellings of names, those of your children and spouse will also land you into issues. These should match the details appearing against your levy identification number as given by the social security administration database. Otherwise, it may take long to have your taxes files. The best way to avoid such is by reporting to the social security authorities immediately in case of name change due to marriage or so.

It is also important to make sure your social security number is recorded correctly in the IRS database. Today, each taxpayer in Covina, CA has distinct levy identification numbers to curb issues around identity theft. However, this ID is attached to your social security details thus making it necessary to give the correct one. Otherwise, you may take long to have your returns filed successfully if any of these numbers do not show up.

If you are among the people who choose multiple accounts for refunds, then record the information correctly. This is a great way to save money on your refunds; however, a single error can cause you all your money. You could opt for the 8888 Form and make sure the details for each account are filled keenly.

Make sure not miss deadline. Avoid tendency of waiting till the last minute to begin filing taxes when you had all the time. Otherwise, be ready to fill a 4868 Form to request for extension.




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