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IRS Tax Tip 2013-51: Eight Tax-Time Errors to Avoid
If you make a mistake on your tax return, it usually takes the IRS longer to process it. The IRS may have to contact you about that mistake before your return is processed. This will delay the receipt of your tax refund.
The IRS reminds filers that e-filing their tax return greatly lowers the chance of errors. In fact, taxpayers are about twenty times more likely to make a mistake on their return if they file a paper return instead of e-filing their return.
Here are eight common errors to avoid.
1. Wrong or missing Social Security numbers. Be sure you enter SSNs for yourself and others on your tax return exactly as they are on the Social Security cards.
2. Names wrong or misspelled. Be sure you enter names of all individuals on your tax return exactly as they are on their Social Security cards.
3. Filing status errors. Choose the right filing status. There are five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household and Qualifying Widow(er) With Dependent Child. See Publication 501, Exemptions, Standard Deduction and Filing Information, to help you choose the right one. E-filing your tax return will also help you choose the right filing status.
4. Math mistakes. If you file a paper tax return, double check the math. If you e-file, the software does the math for you. For example, if your Social Security benefits are taxable, check to ensure you figured the taxable portion correctly.
5. Errors in figuring credits, deductions. Take your time and read the instructions in your tax booklet carefully. Many filers make mistakes figuring their Earned Income Tax Credit, Child and Dependent Care Credit and the standard deduction. For example, if you are age 65 or older or blind check to make sure you claim the correct, larger standard deduction amount.
6. Wrong bank account numbers. Direct deposit is the fast, easy and safe way to receive your tax refund. Make sure you enter your bank routing and account numbers correctly.
7. Forms not signed, dated. An unsigned tax return is like an unsigned check – it’s invalid. Remember both spouses must sign a joint return.
8. Electronic signature errors. If you e-file your tax return, you will sign the return electronically using a Personal Identification Number. For security purposes, the software will ask you to enter the Adjusted Gross Income from your originally-filed 2011 federal tax return. Do not use the AGI amount from an amended 2011 return or an AGI provided to you if the IRS corrected your return. You may also use last year’s PIN if you e-filed last year and remember your PIN.
Additional IRS Resources:
- IRS Free File
- E-file Options
- IRS Tax Tip 2013-13, Determining Your Correct Filing Status
- Tax Topic 303 Checklist of Common Errors When Preparing Your Tax Return
IR-2013-39: Low Income Taxpayer Clinic Program Reports on Activities
WASHINGTON — The IRS’s Low Income Taxpayer Clinic (LITC) Program Office has issued its firstreport showing how LITCs provide pro bono legal services to help thousands of low income taxpayers nationwide resolve disputes with the IRS and learn about their taxpayer rights and responsibilities.
“Although the LITC Program has been operating and helping taxpayers since 1999, this is the first time we have compiled a report describing the program’s activities and accomplishments. We are proud to provide this synopsis and to demonstrate how the pro bono representation, education, and advocacy efforts of clinics assist low income taxpayers,” said Nina E. Olson, National Taxpayer Advocate.
“During the first half of 2012, LITCs helped taxpayers secure more than $3.2 million in tax refunds and to eliminate nearly $16.5 million in tax liabilities, penalties and interest,” said William P. Nelson, LITC Program Director.
The LITCs provide free or low-cost assistance to low income taxpayers who have a tax controversy with the IRS, such as an audit or collection matter, and conduct outreach and education to taxpayers who speak English as a second language (ESL). The report provides an overview and history of the LITC Program, discusses the type of work the LITCs perform, and explains how their work helps ensure the fairness and integrity of the tax system.
Although LITCs receive partial funding from the IRS, LITCs, their employees, and their volunteers operate independently from the IRS. The grant program is administered by the Office of the Taxpayer Advocate at the IRS, led by the National Taxpayer Advocate. The program awards matching grants of up to $100,000 per year to qualifying organizations to develop, expand, or maintain a low income taxpayer clinic. Examples of qualifying organizations include:
- Clinical programs at accredited law, business, or accounting schools whose students represent low income taxpayers in tax disputes with the IRS.
- Organizations exempt from tax under Internal Revenue Code Section 501(a) that represent low income taxpayers in tax disputes with the IRS or refer those taxpayers to qualified representatives, or that provide education and outreach for ESL taxpayers.
The Low Income Taxpayer Clinic Program Report is available here.