Taxpayers have always been responsible for the precision of their tax returns, which should not be new to anyone who has filed a return. But for first-time filers, or for those who have not filed in some time, there are ways to avoid possible run-ins with the IRS.
Disclosure Responsibility
Tax returns are centered on the standard of disclosure – more specifically, “full disclosure” – of income, number of dependents, credits elected (especially the Earned Income Tax Credit), filing status, and any other oral or written disclosures made that are necessary for a tax return preparer to complete the return.
Disclosure Problems
While the burden of disclosure is narrowed by working with a tax professional, willfully disregarding disclosure responsibilities can put taxpayers alone in unfamiliar territory, facing fines and imprisonment, not to mention the tax liability they faced from the start.
Income from employment or other sources generally should be informed in the period recognized. With items such as wage income reported on a Form W-2, the IRS can easily verify income and withholding levels.
The Value of Professional Help
The taxpayer is in charge for the content and accuracy of the return. With this in mind, taxpayers should consider the value of a tax professional’s skill and knowledge in income taxes. Consulting a tax professional can make taxpayers aware of potential issues that could stem from their tax situation. A little money spent consulting with a tax professional could result in a bigger refund and, just as important, a lot less stress if examined by the IRS.
Disclosure Responsibility
Tax returns are centered on the standard of disclosure – more specifically, “full disclosure” – of income, number of dependents, credits elected (especially the Earned Income Tax Credit), filing status, and any other oral or written disclosures made that are necessary for a tax return preparer to complete the return.
Disclosure Problems
While the burden of disclosure is narrowed by working with a tax professional, willfully disregarding disclosure responsibilities can put taxpayers alone in unfamiliar territory, facing fines and imprisonment, not to mention the tax liability they faced from the start.
Income from employment or other sources generally should be informed in the period recognized. With items such as wage income reported on a Form W-2, the IRS can easily verify income and withholding levels.
The Value of Professional Help
The taxpayer is in charge for the content and accuracy of the return. With this in mind, taxpayers should consider the value of a tax professional’s skill and knowledge in income taxes. Consulting a tax professional can make taxpayers aware of potential issues that could stem from their tax situation. A little money spent consulting with a tax professional could result in a bigger refund and, just as important, a lot less stress if examined by the IRS.
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