Saturday, April 19, 2014

Some IRS Tax Problems Covina Residents Should Avoid

By Essie Osborn


Today, one can easily avoid errors in their tax returns by using software. The IRS reports that some errors have gone down since the introduction of this software. You no longer have to do the work manually but can file your taxes online using this software. However, there are still some IRS tax problems Covina taxpayers continue to face which they must learn how to avoid so that they can enjoy a smooth filing process.

Levy changes can easily complicate the filing process for anyone not familiar with new regulations. This makes it necessary for taxpayers to stay alert on any changes the IRS may announce. However, it is not only unexpected cases that bring issues, but common mistakes will also catch some taxpayers off guard. Learn how to avoid these to make the process easier and avoid penalties by the levy body.

Such common errors may occur during calculations especially for those filing the returns manually. However, even when using software, filling the initial values wrongly will definitely give wrong results. There are many repercussions of recording wrong figures in those levy forms such as increase in taxes you owe, reduction in your refunds, as well as being summoned for correction of errors by the IRS.

In the same line of calculations, be keen about credits and special deductions. Many people will commit errors in their computations which will see the IRS sending back your forms to you for review. Some people do not understand how to treat entries like Earned Income Credit, calculations of deductions for taxpayers with special cases or above the age of 65 years, and others.

Levy issues do not result from numbers only. Misspelled words such as names could earn you trouble. The IRS expects your names, those of children and spouse to match their database as recorded in the Social Security Administration records. Some reasons causing discrepancy in names include marriage, divorce or so where the spouse decides to have their documents adopt his or her current status. Report any of these changes to the Social Security Administration in good time to avoid last-minute complication.

It is also important to make sure your social security number is recorded correctly in the IRS database. Today, each taxpayer in Covina, CA has distinct levy identification numbers to curb issues around identity theft. However, this ID is attached to your social security details thus making it necessary to give the correct one. Otherwise, you may take long to have your returns filed successfully if any of these numbers do not show up.

Many people opt for direct deposits into multiple accounts to save their refunds. However, this could be tricky if you fill wrong account or routing number as you could actually lose your entire refund money. If you must fill several accounts, then use the 8888 Form and be extra careful when typing those numbers.

Make sure not miss deadline. Avoid tendency of waiting till the last minute to begin filing taxes when you had all the time. Otherwise, be ready to fill a 4868 Form to request for extension.




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