Reasons That can Make IRS your Uninvited Guests

tax preparation services

Filing for taxes is one of the most overwhelming tasks. If you are about to file your taxes you need to ensure that you have minimized all your possibilities to be selected as one of the candidates by the Internal Revenue Service for an audit. 

Getting a notice from the IRS can make your life nerve-racking. Some people say, when they first received a notice by IRS, they had nightmares to be scared out of their wits and thrown in a prison.

Certainly, most of these issues can be easily resolved by opting for Bronxville, NY, tax preparation services. If you try to be a bit careful while filing your taxes, you can easily avoid the visit of the IRS. We have summed down some of the reasons that can make the IRS be a guest at your house:

Data Entry Errors

Transferring data from one place to another adds up your chances to transpose numbers, write the data incorrectly, or create any other blunders. An audit can prompt by any small mistake, like misspelling your name or incorrectly adding your social security number, and math errors, well that is a huge blunder.

Hiring a reputed tax preparation can help you to eradicate some of these issues. Moreover, you can directly provide them with the required information and they can do it for you appropriately.

Unreported Income

In order to decrease your axes, you think leaving out some dollars from your income should not cause much trouble, but beware. Both you and IRS get the same copies of income reporting forms, so fooling them will make you welcome some intentionally uninvited guests. In addition, IRS also gets the information about alimony, foreign bank accounts, and K1 income, so if you are planning to leave your income off, think again. 

IRS compares your income of every year, and if there is a perceptible divergence to shows, the reason in such a difference will make them sit and take action. Therefore, leaving out any sort of income will directly contribute to the risk of audit.

Wrong Filing Status

When you are married and one of the partners is not working, it makes it hard to determine the accurate filing details. Attaining for Bronxville NY, tax preparation services, van help you to guide through the process and making suitable choices.

Abruptly changing your filing status can send an invite to the IRS. For instance, if you are separated or have been recently divorced, and are planning to file tax as single, I will let the IRS come and conduct the audit to find out what exactly is going on.

Claiming Non-Existent Dependents

If you don’t have custody of your children and are claiming their existence, it is considered as a scam in order to minimize the taxes. The child’s custody can create major confusion. In addition, if you try to claim pets as the children, it is also known as a time-honored fraud, so think wisely before taking such decisions.

You need to follow the guidelines set by the IRS in order to decide whether someone is your reliant or not. You need to know that eventually, the IRS will find out, they will come to audit you, and they are extremely particular about their rules when you are stuffing your returns.

All in All

Tax audits are not amusing, even if you think you have done everything correctly on your own, and you have all the documents, in case the notice arrives, the hassle you will be facing by IRS can cause a huge cleft in your life. Therefore, think thoroughly before filing for the tax guidance from an expert can help you beforehand.