Income Tax Preparation What To Do When You Make An Honest Mistake - article about Income Tax Preparation What To Do When You Make An Honest Mistake

Income tax preparation — What to do when you make an honest mistake

If you need help with your income tax preparation, be sure to find a qualified tax advisor. Unqualified tax preparers may cause you to pay more tax than you should. Unqualified tax preparers may also make mistakes in income tax preparation that result in penalties and interest being assessed to your income tax return. You are legally responsible for everything on your return, even if you pay someone else to do your income tax preparation for you. Always keep the following in mind if you use a tax preparer:

* Beware of tax preparers who promise larger refunds than other firms and tax specialists.

* Be sure to sign your return in ink, and never sign a blank return.

* Make sure the professional tax preparer signs your return.

* Unqualified tax preparers can cause extreme hardship to their victims. Tax evasion brings a penalty of up to 5 years in prison and a $250,000 fine. Double check your return, even when a professional tax preparer is handling your income tax preparation.

* Tax evasion is not easy to prove. The IRS must show that you deliberately tried to reduce your tax liability by falsifying your return, which helps to protect you from unscrupulous tax preparers.

If you are audited by the IRS, you shouldn’t represent yourself in most cases. Always consult a tax professional before you schedule an appointment for an IRS audit. Even if you’re careless in your income tax preparation, negligence in itself is not enough to establish intent to commit fraud. If you made an honest mistake in your income tax preparation, your tax professional will be able to clear things up quickly.

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