Incorrect, missing Social Security numbers top list of most common tax mistakes
Rejected returns can delay refund several weeks, months
At the close of each tax filing season, the IRS compiles a list of the most common errors taxpayers make when filing their tax returns. Believe it or not, incorrect mathematical calculations does not make it to the top of the list. A frequent culprit for the past several years is missing or incorrect Social Security numbers on individual income tax returns.
When an incorrect return is filed, the IRS first rejects it, then often sends a notice requesting additional information. This can delay a refund by several weeks, or even months. In other instances, the IRS may issue a refund, but for a lesser amount than what the taxpayer was expecting. This may occur when, for example, more withholding is reported on the tax return than what is stated on the W-2.
Another common filing mistake is omitting the Social Security number or taxpayer identification number of the caregiver in the child and dependent care credit input. This costly error causes the IRS to issue the refund, less the amount of the credit. Filing an amended return to correct the error will add weeks to the refund’s receipt. Likewise, omitting the Social Security number, ITIN or ATIN of a qualifying child for any of the child-related credits will slow or disqualify the credit claim.
Other common mistakes to avoid when filing taxes this year include:
- Filing too early. Filing before all relevant tax documents are available risks mistakes that lead to processing delays. Jan. 31 is the deadline for issuers to mail W-2s and 1099-NECs, so waiting until February could eliminate a processing delay.
- Missing Letters 6419 and 6475 (if applicable). The IRS-provided Letters 6419 and 6475 for the advance child tax credit and economic impact payments. These letters list the exact amount and date the IRS issued funds for these payments. Use these amounts in the tax return. Any variation from the printed amounts may result in a refund delay.
- Entering information inaccurately. Misspelled names, math errors and wrong bank account numbers slow down processing. Double check input and use direct deposit for refunds.
- Using an incorrect filing status. The Interactive Tax Assistant on IRS.gov helps taxpayers choose the correct status. Additionally, [Business Name] can help taxpayers determine the best status based on personal and financial information.
- Forgetting to sign forms. An unsigned tax return isn’t valid. In most cases, both spouses must sign a joint return. Exceptions apply for some members of the armed forces or taxpayers with a valid power of attorney.
The IRS compiles income, payment and other information in each taxpayer’s account. Differences between what taxpayers report and what is in the account lead to processing delays. Taxpayers can create an IRS online personal account to access the data the IRS has on file. Use interactive assistant tools on the IRS website to calculate eligibility. Save IRS notifications received in the mail. The IRS encourages taxpayers to e-file and use direct deposit for refunds.
Taking a few minutes to double check your tax return before you send it to the IRS, whether you mail it or electronically file, will increase the likeliness that IRS issues your refund in a timely manner. The IRS encourages taxpayers to e-file. By e-filing your tax return, many common errors may be avoided or corrected by the computer software. Contacting Surya Padhi at Sure Financials is the easiest way to e-file. Surya Padhi is an expert who keeps current on tax law changes as well as a member of the National Association of Tax Professionals. Visit Welcome | Sure Financials & Tax Services, LLC (surefintaxsvs.com) for contact information.
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