The importance of reviewing your tax return before your tax preparer presses the “file” button cannot be understated. Catching potential mistakes before your return is filed can help you avoid those unwanted IRS or state tax notices and more. This article provides four reviewing tips that even the most novice tax filer can use to make sure most common mistakes are caught before filing your tax return:
1. Make sure you have provided all your documentation
Not reporting all your income received during the tax year is one of the most common tax return mistakes. Some items to be sure you haven’t missed is dividend/interest income, stock sales, retirement withdrawals and social security income.
2. Ask and understand where certain items are located on your tax return to ensure accuracy
This tip is all about making sure you have verified that all income and other documentation you provided to your tax professional has been included on the return and/or analyzed to determine whether or not it can be excluded from your tax return. If you are told that certain items had not tax impact, make sure you understand why.
3. Ask for explanations for anything you don’t understand
You are the only person ultimately responsible for your tax return. If audited you will be the person “called on the carpet” to defend or explain anything questioned on your return. Therefore, you have not only the right to ask questions, but the responsibility of making sure you are filing an accurate return. Asking questions does not mean you do not trust your tax professional. It simply means you need to understand what you are reporting to the IRS and that it is true and accurate.
4. Signature on the Return
The tax professional preparing your tax return, if being paid for this service, is required to include their information on your tax return. Beware of the signature section stating “self-prepared.” This means your tax professional is leaving you 100% on the hook for your tax return essentially and more than likely does not have the proper credentials needed to legally offer tax services to you.
If you found this article helpful, allow us to invite you to check out a few of our other blog articles:
3 Steps to Resolving Your Tax Issues
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