Tax litigation is a term used to describe resolving tax disputes with local, state, federal, and foreign tax authorities. Litigation arises when there is a tax controversy which may involve an individual, a business (both for-profit and not-for-profit), an estate or a trust.
With tax season in the United States in full swing, it is important that businesses and individual’s alike avoid these common mistakes when filing their taxes this year to avoid threats and penalties from the IRS:
1. Mistakes in Math
Making a miscalculation can result in one of the following:
- The immediate return of your taxes along with a correction notice; or
- A reduction in your tax refund (or you may end up owing more than you thought)
Tax software can make sure that your math is correct. But before you send any tax forms along, make sure that your initial numbers are correct.
2. Computation Errors
Another common mistake are taxpayers, bookkeepers or accountants making mistakes when determining which tax return entries are taxable income, withholding, or estimated tax payments.
3. Misspelled Names
While the IRS may be all about the numbers, they are also all about the names on your tax form. If you file a return where the tax identification number does not match the taxpayer, the spouse or the child’s name, you will either need to:
a) Refile your tax return; or
b) You will not receive your tax return in a timely manner
If you have changed your surname because of marriage or divorce, alert the Social Security Administration (SSA) as quickly as possible.
4. Choosing the Incorrect Filing Status
Taxpayers have five filing status options. It is important to choose the one that is most suitable for your personal tax situation so that you can maximize your return.
5. Leaving Out Valuable Tax Deductions
If you have given to charitable groups over the past year, you may be able to claim these as valuable tax deductions. From cash given to charity to donating property such as cars and land, you may be able to claim these on your tax form.
When to Contact the Scammahorn Law Firm
Based in the Dallas area, the Scammahorn Law Firm protects hardworking American tax payers from threats and penalties issue by the Internal Revenue Service. We handle a number of federal tax-related issues, including delinquent returns and payments, back taxes and audits.
If you have been targeted by the IRS, we want to hear from you. Call us today at (903) 595-1000 to discuss your tax situation.