While tax filing looks like a headache, it is something that must be done on time. While this period brings in lot of tasks, no other tasks get scheduled due to this. All of us have to file taxes while dealing with everything that we have at hand. this is why many of us make some kind of mistakes that get us into trouble with the IRS. Before making sure that one files the tax properly, it is necessary to know about the mistakes. Being aware of the mistakes helps in avoiding the mistake. Tax filing takes enough time and effort. Getting into more troubles even after filing tax is going to take even more time and effort. You can learn more about the mistakes here.
Failing To File The Tax Properly
A business or individual might have to fill quite a few forms to file the taxes. Some of these are filed annually while some must be sent quarterly. Both IRS and state tax department would require businesses and people to file the tax in time and properly. Failing to do these tasks at the proper time would make these department levy interest and even penalize the business. In many cases, IRS goes as long as wage garnishment and property seizure to recover the taxes.
Underreporting
Many people choose to inflate their deduction and undermine their income in order to pay less amount of tax. It is actually considered as a criminal offense to file underreported tax returns. On finding intentional underreporting, IRS can levy penalty on the firm or person. along with it, you can also face charges of criminal tax fraud. While mistakes can happen, intentional criminal activity is something with which you can walk away. It is necessary to be honest and careful while filing your taxes.
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