The IRS Recommends Filing an Extension if You Need One.
With about a week to go on filing your 2017 tax return, you may be breaking speed records to try to get it done on time.
But did you know that the IRS recommends that you file for an extension if you need one?
It’s better to file for an extension than to hurry through the return and make a mistake. Mistakes not only cause stress, they may also cost you money.
Here are common errors that taxpayers make:
Mailing a paper return to the wrong address.
The address for mailing your return depends on where you live. Take your time and triple check that you have the right one. The onus is on you to get your return in on time. If your tax return is late arriving because it went to the wrong address, it’s still late. This means that any tax you owe can be subject to penalties. You may want to file it electronically.
Looking at the wrong amount on a tax table.
Yes, tax tables have a lot of information in them… and yes, it’s easy to look at the wrong line and pay the wrong amount. Whether you overpay or underpay, it’ll be a headache that you don’t need. So take your time and check those numbers again.
Not using care in filling out your return.
Make sure you complete your return correctly. A transposed social security number, for instance, can cause a problem. And a mistake on an income digit? That could make a big difference in the final result. Again, if you pay less than you owe, you are subject to penalties and interest on the unpaid amount.
That goes triple for your routing and account numbers.
Requesting direct deposit for your refund is convenient and gets you paid faster. Can you imagine if you put the wrong number in for your bank account however? It could delay your refund at best. At worst, it can actually get deposited into the wrong account. Another headache you don’t need!
Don’t forget to sign and date.
Without the signature and date of all filers filing (and all pipers piping, just kidding), the IRS can’t do anything. Make sure that you and your spouse both sign if it is a joint return.
Not attaching all required forms.
You need to submit those W-2s, 1099s, etc., to the IRS along with your return… attached to the return, in the upper right-hand corner.
Not keeping copies for yourself.
The IRS may have a question or you may need to refer to your return at a later date. It’s a good idea to keep a copy of everything you submit.
Again, if you can’t file your taxes accurately and completely by next Tuesday, the IRS recommends an extension. It’s easier (and safer) than rushing through it and making a mistake, and it will prevent late-filing penalties. Remember that while an extension grants additional time to file, tax payments are still due April 17.
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Jeffrey Schneider, EA, CTRS, NTPI Fellow has the knowledge and expertise to help you reach a favorable outcome with the IRS. He is the head honcho at SFS Tax & Accounting Services as well as the Enrolled Agent and Certified Tax Resolution Specialist for SFS Tax Problem Solutions.
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For more on SFS Tax & Accounting Services, visit https://sfstaxacct.com/
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738 Colorado Avenue Stuart, FL 34994
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Phone: 772-337-1040
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https://www.linkedin.com/company/sfs-tax-problem-solutions/
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