The IRS Loves Auditing Taxpayers Who Do This… Experts Say These 6 Things Are Big Tax Filing Mistakes

Introduction

As we approach tax season, many Americans are scurrying to gather their forms, receipts, and financial paperwork. However, experts warn that there are common errors that can automatically trigger an IRS audit.

1. Incomplete or Missing Information

Filling out your tax forms can be tedious, but leaving blanks or excluding necessary information can be a big mistake. Be meticulous when filling out your forms to prevent this issue.

2. Math Errors

Though it may seem basic, math errors are one of the most common reasons the IRS pounces on a taxpayer’s filing. Ensure that all numbers throughout your tax forms are added, subtracted, divided and multiplied correctly, and double (or triple) check for accuracy.

3. Discrepancies Between State and Federal Returns

A discrepancy between your federal and state tax returns can send a red flag to the IRS. Keep your documents consistent when reporting income and deductions on both state and federal forms.

4. Claiming Too Many Deductions

While certain deductions are legitimate, claiming an excessive amount can be suspicious. Be modest and realistic when claiming deductions. Remember, larger deductions may warrant supporting documents.

5. Failing to Report All Income

Regardless of how small or insignificant it might seem, failing to report all of your income can quickly attract IRS attention. This includes gig work, side jobs, or any miscellaneous income not covered by a W2 or 1099 form.

6. Mistakes in Claiming Dependents

Claiming dependents incorrectly can cause the IRS to scrutinize your tax return. Be sure you are following the current rules regarding who can be claimed as a dependent, such as their relationship to you, their income, and their living arrangements.

By avoiding these common mistakes, taxpayers can increase their chances of filing a clean, audit-free tax return. As taxpayers, it’s our duty to ensure accurate and honest reporting. Not only to protect ourselves from the stress and worry of an audit, but also to maintain the integrity of our nation’s tax system. Be sure to always consult a tax professional if you are unsure about any aspect of your tax return.

Inaccuracy, Audit