Common Tax Mistakes to Avoid and How to Fix Them

Tax season rolls around every year.  And every year, taxpayers are faced with the daunting task of preparing their taxes. There are some very common errors that can result in penalties and interest from both the IRS and the state.  Some of the  most common errors are failing to report all income, such as crypto currency, freelance or investment earnings. Another mistake is claiming a deduction that the taxpayer is not eligible for, which can result in a letter from the IRS/State or even, the very uncomfortable, tax audit.

If you discover that you made an error in providing income, took a deduction that you shouldn’t have, or didn’t take a qualified deduction, the IRS permits a taxpayer to amend the tax return up to three years.  One of our clients realized they forgot to provide the information that money was withheld from the sale of a home.  When we amended their taxes, it resulted in a $7000 refund from the state!

Utilizing a professional tax preparer can help you avoid costly mistakes on your personal or business tax returns.  At Sinclair Tax Services, we provide the most current information on additional deductions and help identify potential savings opportunities for our clients, both for personal returns and business returns.