Nevada tax time: Mistakes could result in IRS review
It can be extremely easy to make mistakes on a tax return, especially if a Nevada resident is not using a professional to help them. However, one small slip up could mean less money from the IRS or a larger amount of tax debt. Avoiding some of the most common pitfalls could help taxpayers ensure they receive exactly what they are entitled to during refund time.
Math miscalculations can happen to anyone and represent one of the most common refund mistakes. These errors can result in a notice from the IRS requesting a corrected return. One of the easiest ways to combat this is to use an electronic software program to assist you. The programs have calculators to do the math for you, but the user still should ensure they input all the numbers correctly.
Another error doesn’t exactly concern the tax paperwork but addresses where the money goes. Using direct deposit for a tax refund is an easy way to get the money faster, but it does allow for human error. If the wrong account number is placed on the return, there is a possibility someone else could receive the money, or it could bounce back to the IRS.
Many people take extra jobs throughout the year and may receive a Form 1099-MISC. Even though the amount might be small, the IRS will receive a copy of this document. If the earnings are not included on the tax return, the IRS will likely notify you if there are any taxes owed. If the error is not discovered for a lengthy period of time, it could result in interest and penalties on those earnings.
With the amount of information required on a tax return, there are plenty of opportunities for error. If a mistake results in a large IRS debt, Nevada residents may wish to speak with a knowledgeable party, especially if communication with the IRS has broken down. In many cases, tax debt can be successfully negotiated to result in either a payment plan or an agreeable settlement.
Source: Yahoo!, “Avoid These 10 Common Tax-Filing Mistakes,” Kay Bell, Feb. 6, 2013