Tax season is in full swing and tension can get a little high. When people are stressed, they tend to make mistakes when filing their income for their tax return. As experienced accounting and audit professionals, Hall & Company CPAs (Certified Public Accountants) regularly have clients asking, “Am I filing my taxes right?”
Having helped business owners and high-profile CEOs in Irvine, and surrounding Orange County communities, file taxes for over 35 years, Hall CPAs have seen it all. Here are our most common mistakes people make when filing taxes by themselves:
If you are earning extra income on the side, but not reporting it
The IRS requires all business owners to file their complete income – not just a select portion of it. Failing to do so could end up in a business owner’s worst nightmare: the dreaded audit!
If the IRS does come calling on you to be audited, they will request copies of bank statements and transactions, and can audit as far back as the previous three years of your returns!
Avoid the stress and file Accurately with a capital A!
Forgetting to make estimated tax payments
If you’re a self-employed business operator or make an income from which taxes are not withheld, the IRS requires that you make estimated tax payments per quarter. By the time the tax deadline comes around, you ideally would have paid off the majority of the taxes that you owed. It that isn’t the case, and you missed your payment, the IRS can hit you with a penalty for late payment.
Avoid this by keeping meticulous bookkeeping and your calendar’s tax deadlines up to date!!
Wrong or Missing Social Security Numbers
Typos happen. Getting yours or your child’s Social Security numbers (SSN) incorrect can be as easy as being a tad too rushed. And attempting to recall a fuzzy SSN can equally result in mistakes.
Avoid this by making sure that you enter the absolutely correct numbers and double-check them with hard copies of your Social Security cards.
Electronic Filing PIN Errors.
The biggest mistakes aren’t just pen-to-paper! E-filed tax returns require a signature via a Personal Identification Number (PIN). Everyone who files online will be asked to select a PIN when filing – and you may reuse last year’s PIN to keep things simple.
Most of these issues can be avoided by slowing down, taking a deep breath, and remaining very organized. However, the most surefire way to ensure your taxes are filed correctly and that you receive your proper tax return while keeping the IRS off your back is making an appointment with your CPA.
Hall & Company is the Irvine accounting firm that prides itself on providing superior tax, accounting, and audit services to our clients. Our firm constantly invests in the continued education of our CPAs and remain at the forefront of the most current tax knowledge and trends. If you own a business and want to make sure your taxes are filed accurately, it’s time to call Hall & Company.
You can always reach us via email or call 949-910-HALL (4255).