The IRS tax code is complicated and always changing, so it’s easy to make simple mistakes when filing your returns that could have serious consequences later on. While some of these tax return preparation errors could result in a higher bill, others might trigger significant fines and penalties, potentially costing you thousands of dollars in remediation fees. If you’re getting ready to file your taxes, here are a few common mistakes to avoid.

A Guide to Common Filing Mistakes

1. Missing the Deadline

Most taxpayers should have their returns filed and taxes paid by April 15th, unless an extension has been requested. However, business owners and independent contractors are usually required to pay taxes quarterly. If you miss these deadlines, the IRS will likely assess penalties for both filing late and for failing to pay your bill on time.

2. Forgetting to Include All Sources of Income

If the income claimed on your tax returns doesn’t match the information on file with the IRS, they may audit your finances and subject you to additional fees and penalties. Before starting your tax return preparation, be sure you have statements from all of your income sources, including wages, client payments, investment accounts, and retirement funds. The most common forms that you will need to include are the W2 or 1099-MISC.

3. Using Outdated Information

Every year brings new revisions and updates to the tax code, including bracket adjustments, the introduction of new credits, and the elimination of certain deductions. Be sure to reevaluate your status each year and ensure that it reflects the current IRS tax code. If you got married, had children, or started a business, you will be subject to different areas of the tax code. Using out-of-date information can cause you to underpay, or miss valuable deductions that may reduce the amount you will need to pay.

Tax season can be stressful, and its best to leave the hard work to the professionals. With offices in Corbin and London, KY, Cloyd & Associates PSC provides detailed, accurate tax return preparation services to clients throughout Laurel County. Whether you’re a business owner, investor, or an individual taxpayer, they’ll help ensure that your returns are filed accurately and on time. Visit their website for more information on their tax return preparation services, and follow their Facebook for more tips and updates. To make an appointment at their London office, call (606) 864-8110, or dial (606) 528-8776 today to speak with an accountant in Corbin.