Tax season is here, and private citizens and business owners alike have until April 17th this year to file. While nobody ever seems to enjoy filing taxes, it’s important to remember that this is an important and essential part of our society. The IRS relies on complex tax laws which feature more than 4,000,000 words that require a masterful lexicon and specialized education to truly understand. Tax mistakes are a common problem, creating financial and economic problems for both the payers and the payee. Failing to file your taxes can result in a wide range of tax evasion penalties. If you are struggling, it’s important to find a team of qualified experts that can guide you through every step of this complex process and deliver an optimal outcome for your unique case.

JDKatz was founded to be your team of trusted tax attorneys in Maryland and Washington D.C., delivering comprehensive services and expertise to improve your situation. From tax fraud to qui tam lawsuits, our law firm is here to proudly support our clients. We also provide criminal litigation, estate planning, and business law, utilizing a diverse team to create a stronger approach for your needs.

As the tax deadline looms, many people are anxious about the potential fines and setbacks associated with the process. Today, we’ll highlight a few of the most common tax mistakes that you should avoid when filing. If you’re in need of tax advice or support, be sure to contact our firm today!

Not Filing at All

Many residents across the U.S. do not file a return at all because they are worried about the costs and potential penalties. It can be daunting to face a large tax bill for your personal finances or for your small business. Our tax attorneys have worked with the IRS in tax disputes for many of our clients, and we’re here to tell you that it’s much better to file knowing you can’t afford the bill than not filing at all. If your taxes are filed correctly, you can reach out to the IRS to start a payment plan to pay off any tax liabilities.

It’s important to remember that payment plans with our government come with low interest rates and that they are meant to serve as a vehicle to enable you to take care of your financial burdens in a manageable way. This approach is highly recommended over not filing, as taking this route can lead to tax evasion penalties and possible legal charges.

Not Filing on Time

We’ve all been guilty of procrastination before. From your seventh-grade science report to shoveling that blizzard off of your driveway, there are a lot of activities that can be put off. When it comes to filing your taxes, though, it’s important to get the job done before it’s too late. The IRS posits that a fifth of all Americans will wait until the last week to file their taxes. Pushing the limit of your tax window can be very stressful, especially if you fail to file on time.

Remember that tax law is complex, and unexpected setbacks may be inevitable. If you were to run into a problem during the final week, a solution may not be found until after the deadline. This normally results in unwanted penalties and interest charges. The deadline is coming up, so be sure to reach out to our tax team if you need help!

Entering Incorrect Information

Even if you file on time, the potential exists for costly problems if you are not precise when entering data. This is one of the most common errors we see during tax season. We’re only human, and humans make mistakes. It’s essential to go back and double- and triple-check your work when filling out your forms. Being one digit off on your Social Security number, for example, can result in errors, can result in a rejection.

While entering data incorrectly can delay your return or payment, it’s important to keep calm and remember that the IRS isn’t “out to get you.” In many cases, citizens will receive a correspondence that points out their mistake, as well as the changes that the IRS has proposed. At this point, you can accept their changes and be done with it. Some citizens will be relieved to see that the updated corrections will increase their return while others learn that they owe additional funds. Sending in a response with a payment will normally be enough to resolve the problem. If you disagree with these changes, you will be required to send in a response with detailed reasons why you reject these edits. If you are dealing with serious issues at this stage, our Maryland tax attorneys are ready to help!

Tax law is very complex, involving a plethora of rules and scenarios that all need to be translated and addressed properly for the best outcome. Next time, we’ll continue this subject by highlighting a few more common mistakes we see during tax season. If you need representation or tax advice, be sure to contact us at JDKatz for assistance.