How To Guarantee Your Maximum Tax Refund

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Tax laws are very complex and forever changing. If you do owe taxes, there's always a margin for error. Professional tax software aims to be 99.99 percent, but nothings perfect. The most seasoned tax professionals may find themselves making a slight error in tax preparation. Sometimes your taxes aren't experiencing any discrepancies, but there could be other factors. When you are filing your taxes each year, the goal is accuracy and the highest income tax refund possible. There may be credits that you're eligible for and don't even know it, but you may have also taken claims you're not eligible for without knowing. 

How To Avoid Inaccuracies On Your Tax Returns 

There are several mistakes that can hinder the most money possible on your return. You can also have incidences that can cause the IRS to audit your business or personal taxes. Unfortunately, too many taxes mistakes can cause a tax levy. Your local tax filing service can help you avoid costly mistakes. They can tell you what you are or aren't entitled to based on the current year's tax laws. Plus, a professional tax service can get you money in advance based on your W-2s. 

Your business taxes can be very complicated. You may need to have someone look over your taxes from a few years back to make sure your business has claimed everything that it's entitled to. Going back will help you find errors and unclaimed credits. You want to find those mistakes before the IRS does. There are always huge penalties if the IRS finds mistakes in your return and very little wiggle room for error. Your business could suffer huge consequences if the right return is not filed each year. A professional should always handle your business tax preparations to avoid possible mistakes. 

A lot of people are e-filing their personal taxes. If you're not experienced with tax professional software, this can leave room for a lot of mistakes. You should go back at least 5 years to ensure you've avoided those costly personal income tax mistakes. You can easily get a tax advocate to help you with your personal taxes. They will go over your previous taxes with you and give you an audit based on the current rules for the filing year. Their tax advocacy service is also free to low-income tax preparers. You can learn more about their services by contacting a tax advocate from their 800 number. 

If your taxes don't match up to what the IRS has, you'll receive a CP 2000 notice. This is the perfect opportunity to go back in your previous tax returns and check for any mistakes. You could have made a simple math error that needs to be corrected. However, to avoid penalties, you have to backtrack. There are several errors that you should look for, but more importantly, make sure everything lines up with your W-2s or 1099 forms. The mistakes based on the previous year will determine if you're audited or not. 

There is no easy way to file your taxes. It takes time and preparation. Plus, never hire an unlicensed tax preparation to go over your previous year's taxes. They are probably only in it for the money. A professional will use a tax chart that can help you with the current and previous years taxes. A tax chart will help you determine what bracket your business taxes are in. There are one of seven brackets that you can fall under according to the IRS tax chart. Go back to your prior taxes, automate, and simplify your business taxes. 

Mistakes do happen, but the best way to handle tax errors is to correct them. You should also check your taxes to make sure the IRS recalculations are correct. The IRS can make mistakes too. If they send you a bill for taxes owed, that's a great time to backtrack your previous returns. A tax mistake will mean that you need to amend your taxes for a particular year. Mistakes in your taxes will cost you interest and penalties. Businesses also deal with stocks that are important to your tax return. You're invited to contact the IRS to learn more details about going back into your previous year's income taxes to check for errors. 

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