Editor’s Note: This post was originally published in February 2017 and has been updated for accuracy and comprehensiveness.
As the IRS reviews your tax returns each year, they are paying very close attention to the details. They look for any entry that makes this year's return seem markedly different from last year's.
If the IRS finds discrepancies, your return may be be set aside for review or even an audit. Make sure your return is accepted and processed smoothly by avoiding these common tax filing mistakes this year.
Mathematical Errors
Something as simple as math errors could lead to your return not being accepted and processed. If you're e-filing your return, these mistakes can be caught quickly when the IRS runs your return through a digital system that checks all of the computations. If the system detects even any miscalculations, the system may flag your return for review or kick it back to you for correction. If you're e-filing, you can typically correct the error and try to e-file again.
However, if you're filing a paper return, it's especially important to make sure all of your numbers add up and are correct before submitting your return because catching errors and returning it to you for correction will take longer. Use a calculator if necessary to be sure that your math is correct. The IRS will not process your return until miscalculations are corrected.
Wrong Bank Account Details
Making a mistake when inputting your bank account information will cost you more than it will the IRS. The IRS will send your refund to the wrong bank or wrong account. When you report the error, you must then wait another six weeks for a paper check to be mailed to you.Avoid this refund disaster by double and triple checking your bank routing and account number as well as the bank's correct name if requested on your return. This precaution guarantees that you get your refund without delay or hassle.
Failing to Report Income
The IRS knows very well how much you make each year. Your calculations might be fuzzy; however, the federal government knows to the penny what income you brought in last year.
Why bother hiding the fact that you received this money by omitting it from your tax return? To save yourself an embarrassing, expensive, and legally troublesome audit, make sure you report all earnings from:
- self-employment
- lottery winnings
- investments
- cash gifts over the stipulated IRS amount
- inheritances
Filing Status Error
The IRS will also review your filing status on your return. If your status changes from last year, the government will wonder why and examine your return to review the matter further.Of course, you might have a legitimate reason for changing your filing status, such as getting married or divorced. Still, if the IRS suspects your filing status is wrong, your return could be subject to further screening and possible rejection.
Failure to Sign
Another simple yet regrettable way to get your paper filed return set aside or rejected involves not signing it. You must sign your return before you send it to the IRS. Without a signature, it cannot be processed.
If your signature is missing, the IRS will reject it and send it back to you for a redo. Save yourself the trouble by making sure you sign before submitting it.
Missing the Filing Deadline
Finally, the IRS will zero in on your return if you file and submit it past the April deadline. That deadline normally is April 15.
However, depending on the year, it may fall a few days after to allow for weekends or federal holidays like Emancipation Day. Check the calendar and make sure you file your return by this year's deadline. If you submit it late, you could set yourself up for rejection of your return or a fine.
The IRS can reject or set your return aside for a variety of reasons. The most common reasons involve mistakes that you can avoid before you file and send in your taxes. Save yourself the frustration and embarrassment of an IRS review, audit, or penalty by avoiding these top six tax filing errors.
