Tax attorney in Los Angeles - Big Mistakes to Avoid

Friday, March 27, 2015

We are the Strategic Tax Lawyers and as tax attorney in Los Angeles and we specialize in federal tax code.  We want to inform you about mistakes you should pay attention to and stop making on your tax return.   The notorious two page document, Form 1040, is an audit trigger for many taxpayers.  Many of the errors made on this form could be eliminated, but instead mistakes are made that either require you to send in an amended return or you may red flag the Internal Revenue Service to audit you.

We all know that U.S. taxpayers dread tax season and we all spend our time filling out tax documents each year, Form 1040 being one of them.  This form has taxpayers work and sweating over the two pages for approximately five hours, based on IRS statistics.  In general, the IRS has estimated that the overall time it takes to complete Form 1040 is 16 hours.  This estimate also includes the time for tax planning and record keeping.

  What makes it complex is that the form comes with an instruction manual that is over 100 pages which details how to fill out two measly pages.  Yet these two pages are enough to give the IRS every bit of information about itemizing, home business, schedules, etc.  So you better make sure that these 2 pages have correct information because the IRS will be scrutinizing these forms.

  The IRS says that Form 1041 is not the only issue. Most taxpayers are not well informed about income tax basics.  Most taxpayers don’t understand the tax implications of IRAs, what expenses qualify as deductions and how not filing is the worst tax mistake you can make.

  Also, if you are depending on tax preparation software, don’t think that you won’t trigger the IRS.  The information you report is what the IRS will receive.  So you may eliminate mathematical mistakes, but if you enter incorrect information, the results will be wrong.

  It is important for taxpayers to reduce errors by double-checking what they are reporting on their form or inputting into the software.  We, as tax lawyers in Los Angeles want taxpayers to invest time to report actual numbers versus entering estimates.  If you estimate the wrong amount, there is a good chance that you are over- or under-reporting.  So, it is as simple as rechecking the amounts you enter before submitting to the IRS.  Also, a simple mistake is entering an amount on the wrong line.  And reversing numbers is also a common occurrence.  You can easily switch an amount by entering $5,100 instead of $1,500.  That’s a big difference and could cost you a lot.

  Also, make sure to check if you are missing any forms or documents.  You can easily compare what you submitted to last year’s returns.  Chances are, if you submitted the form last year, you will need to again this year.    Do you need to hire as tax lawyers in Los Angeles?  Consider hiring the successful Strategic Tax Lawyers, LLP who have documented tax-related experience and positive outcomes.  Call the Strategic Tax Lawyers at (800) 669-4775 for a free consultation to assist you with your tax-related issues.