Tax return preparers have a lot on their plate during tax season. Between meeting IRS deadlines and ensuring that all the required information is included on tax returns, it can be easy for them to make a mistake. However, some errors are more dangerous than others and can lead to costly penalties for taxpayers.
Here are three of the most common and dangerous traps for tax return preparers:
One of the most common mistakes made by tax return preparers is failing to report all of the income earned by their clients. This can lead to taxpayers being audited by the IRS and may result in them having to pay back taxes, penalties, and interest.
Another common mistake made by tax return preparers is not claiming all of the deductions and credits to which their clients are entitled. This can lead to taxpayers paying more in taxes than they should, and may also result in them being audited by the IRS.
One of the most dangerous mistakes a tax return preparer can make is filing a client’s return late. This can lead to taxpayers being assessed late filing penalties, as well as interest on the taxes they owe. In some cases, taxpayers may even be subject to criminal prosecution for tax evasion.
By avoiding these common mistakes, tax return preparers can help ensure that their clients’ returns are filed accurately and on time.
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