Overview of common tax problems

Overview of common tax problems

The adoption of the modern technology on e-filing, has brought in simplification and reduction of errors. It has led to efficiency and effectiveness in service delivery and revenue collection. This, and many more reasons, are core as to why we should be prone to change each time we are introduced to a better version that seems to simplify work and save on unnecessary government expenditure. Despite the ease of e-filing today, there are still common problems that result from filing tax returnsincorrectly and they include:

Miscalculations

Bad mathematics is a common error, due to mistakes committed in arithmetic or when transferring figures from one form to the other. Tax software helps reduce any errors, as the inbuilt calculators do all the math for you, but you still need to certify their accuracy.

         Spelling mistakes

Despite number being the major content in the IRS system, names are equally important. The name of a taxpayer may fail to match with that on the social security administration. When such an error occurs, it causes delays in the process of tax returns. This normally occurs in the event of a marriage when the wife changes her surname.

Overview of common tax problems

Missing the deadline

It is in the nature of human beings to always have a last minute rush. This leads to many missing the midnight deadline marks. Missing deadlines calls for action of the law as you become non-compliant and you are subject to a penalty. Therefore, always make it your goal to pay your dues early to avoid being beaten by deadlines causing you to be penalized.

Direct deposit dangers

At times it occurs that taxpayers directly have a refund deposited in their many bank accounts.This is an error due to more numbers entered into the tax form which could be confusing and incorrect, and possibly resulting inlosingany refund.

Filling status

Choose the correct filling status for your current situation, to help you differentiate with the rest when status changes for example when you are single and when you transit to marriage. Put a clear distinction of the two.

Required signature

When dates and signature misses on the tax return forms, the IRS will fail to process your returns. If you are doing the returns online, you need to sign using your personal identification number.

Social security numbers

Many people do mess on the social security numbers as they confuse the names with the numbers. There should be a clear distinction on the taxpayer’s number, taxpayer’s spouse, dependents of which all this information must be clearly indicated as they appear on the social security cards.

Failure to file for and failure to pay penalties

One is subject to a penalty when he or she fails to file on time and fails to pay on time.for further details, visit: http://bsaefiling.fincen.treas.gov/main.html

Why undergo all this trouble of math errors, signature failures, spelling mistakes and many more? You can hire a tax professional who will perfect on this to minimize error, rather do it yourself, carefully and you will achieve the best of results in error reduction.

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How to find a Tax Professional

How to find a Tax Professional

Is it your first time to prepare tax returns? Or are you too busy to even remember that taxes are filed? If you are in such a dilemma then you need to find a tax professional soon to do all the paperwork for you. But the big question stands: How do I find one? Finding a tax professional whom you can fully trust with your personal information is a great challenge due to the high rates of cyber-crimes that are reported day in day out. But don’t be worried, I will guide you with a way forward on how to get the best preparer.

Even before you decide on whom to hire, make yourself familiar of the various types of tax preparers we have in the market. The two main types are:

How to find a Tax Professional

  • Certified Public Accountants – These are accountants who have been tasted and qualified the state exams and that they have the necessary education and experience to handle tax matters. A CPA specialist can be able to guide you even through other financial management issues, though first make sure whether or not they have experience in tax returns.
  • Enrolled agents – These are tax agents who have been enrolled by the IRS basically via conducting an exam or having worked with the IRS for at least five years. In this way, you qualify to have the experience to practice as a tax professional. These agents are the best to use since there life is taxes and may have affordable rates.

Since you are the one legally and financially responsible for all the transaction despite someone else preparing them for you, below are some of the tips to apply to find a tax professional:

  • Referrals – A referral especially from a friend is more trustworthy to go for. If none of your friends haveany suggestions, then you can opt to ask people from outside your inner circle, such as a work colleague, a neighbour, acquaintances or any consultancy.
  • Research – In the world we live today, the Internet has made work really easier. Just by typing ‘How can I find a tax professional?’ you get many options from which you get to choose from. With this, you only need to be careful not to fall into the hands of conmen.
  • Yellow pages – This is a local directory inventory which can give you for example a list of the CPA holders in your location, with their contact information.
  • Registered bodies – Professional bodies, for example a body for CPA holders within your location or even IRS, can direct you to qualified Enrolled agents. for more details, visit : https://www.ri.gov/taxation/refund/

Once you have the contact of this person, you need to certify their qualifications and perform an intense background check on the same especially on the company or individual profile. Also check for compatibility of the tax professional with the type of tax returns you want to make.Do not be afraid of calling a few people to see if they know of the tax preparer and never sign an empty tax returns.