Saturday, April 26, 2014

Top IRS Tax Problems Covina Taxpayers Ought To Avoid

By Essie Osborn


The IRS has reported a decline in tax errors since introduction of the levy filing software. This software is a great relief for many even those without a lot of knowledge in taxation laws or accounting. However, there are still people with challenges coming up with a thorough report. These need to learn some details about common IRS tax problems Covina taxpayers continue to face and how to avoid such for them to enjoy easier time during filing.

Always learn about levy changes that could affect your filing exercise. In most cases, each year there could be changes, small or big, and these will result to some complications if you do not adhere. Otherwise, issues do not only arise from special cases like changes, but also common mistakes every taxpayer could easily avoid if they were keen during the filing process.

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.

Still on calculations, be keen about computation errors. These result when one does not treat some entries correctly. For example, one may not know how to calculate amount of money deductible for people over the age of 65 years or the blind, and others. Another entry that could complicate issues is Earned Income credit. Find help with a qualified professional if you are not competent to work out these on your own.

Levy issues do not result from numbers only. Misspelled words such as names could earn you trouble. The IRS expects your names, those of children and spouse to match their database as recorded in the Social Security Administration records. Some reasons causing discrepancy in names include marriage, divorce or so where the spouse decides to have their documents adopt his or her current status. Report any of these changes to the Social Security Administration in good time to avoid last-minute complication.

Make sure to give the right social security number (SSN) when filing. Otherwise, the IRS uses it to search for other details so that they could begin processing your forms. Today, every taxpayer in Covina, CA has a specific tax identification number with personal details matching those in the Social Security database. This helps cut down identity theft issues. Giving the right SSN improves the rate at which you are served.

You may want to choose multiple accounts for direct deposits of your refund. This is a great way of saving money but risky as recording many account numbers increases chances of making errors. An alternative would be to fill a 8888 Form and make sure you verify details of each account before handing over.

Another mistake you should avoid by all means is missing the deadline. This results from waiting to begin this process the last minute. Unless you are willing to fill Form 4868 to ask for extension, then begin the process in good time. The due date is April 15, and one ought to have their taxes cross-checked and forwarded by this time. Otherwise, you will attract hefty fines from the IRS.




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