From charitable donations poorly recorded to cutting corners on tax returns, the income tax filing dangers when preparing your taxes are innumerable. Luckily, the Tax Resolution Institute was founded as an extension of a respected accounting firm that knows how to file your tax returns correctly. Even if you are choosing to take an extension because of income tax debts and fears of the IRS auditing you, we can help.

Cutting Corners With IRS A Mistake

irs, tax filing dangers

Beware IRS Income Tax Filing Dangers

The problem with unqualified tax preparers is they often try to cut corners in order to save client’s money. Cutting corners leads directly to income tax filing dangers. Since a respected accounting firm backs the Tax Resolution Institute, we know how to file both state and federal returns without creating trouble. We know the questions that need to be asked and the corners that should not be cut. We can save you money without causing future problems. A perfect example is making sure the deductions you are taking are correct

Accountant Ben Sullivan outlined some of the charitable donation problems to U.S. News Report when he said,  “You should also be sure you have accurate records of the donations and confirm that the recipient is a qualified charity… If you received any tickets, goods or services in exchange for the donation, you can only deduct the amount paid in excess of the value you received…Donations to businesses on Kickstarter, to help an individual in need, or to a political campaign are never deductible.”

State Tax Refunds & Income Tax Filing Dangers

Another major problem is when taxpayers fail to report state refunds on their federal tax returns.  Did you receive money after filing your state taxes last year? Did you add that to the income you received last year? It is a major red flag and a prime example of income tax filing dangers when a state tax refund is not reported on a federal income tax return.

State refunds are considered to be income and need to be added to your federal taxes. In fact, they must be reported. It is a bad problem when a bonus check from the state ends up getting you in trouble with the IRS.

The Tax Resolution Institute Can Help

If you simply cannot finish your taxes on time, file IRS Form 4868 and get an extension from the IRS until October 15 to do your taxes right. If you rush to prepare a return or make mistakes, you could end up in real trouble with the IRS. If you cannot finish your taxes by April 15 and file an extension, everything will be fine in the long run. The tax police are not going to come and knock on your door. American taxpayers need to understand that’s not how the IRS system of taxation operates.