Do You Make These Mistakes?
In this series, I am going to be asking the question, "do you make this mistake?" The majority of times people get into trouble with the IRS it is because they do not know what they are doing rather than some intentional action. While ignorance is not a defense (even when dealing with complex issues like the Internal Revenue Code and your income taxes) a few steps can be taken to make sure you don’t make huge mistakes that cost you down the road.
Some of the topics we will discuss are listed below, but if you think of anything you would like considered, please comment below.
- You don’t have enough income tax withheld from your paycheck. You claim 9 exemptions on your W-4 so you can get a lot of money in your paycheck?
- You don’t file your tax returns on time.
- You don’t claim enough exemptions.
- You ignore communications from the IRS
- You mix your business and personal expenses
- Do you prepare your own tax returns?
- Do you underreport income?