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What is the most common mistake people make in giving us their income tax information?

by Frank Stitely 9. July 2010 10:15

What is the most common mistake people make in giving us their income tax information?

By far the most common error occurring on tax returns is giving us incorrect amounts for estimated tax payments. In fact this error is so common that we no longer accept estimated tax payment information for tax returns by telephone. We require that the information be in writing either by e-mail or some other written form directly from you.

The IRS catches this error 100% of the time. If the estimated tax payments in their records do not match the estimated tax payments recorded on your income tax returns, you will get either a bill or a reduced refund.

There is really no point in guessing what you have paid at tax time. Every year clients tell us “I paid whatever you told me to pay” or “I am certain I made all the payments by the due dates.” Pretty much everyone who has ever told us these things has been wrong.

We know that what they are really telling us is that they have no idea what they actually paid. The IRS only cares about what you have actually paid and when you actually paid it. Words don’t matter.

Please keep a good record of what you have paid in federal and state estimated tax payments. A good record includes the check number, check date, and amount of each payment.

We recommend making copies of both the check and the estimated tax voucher on one sheet of paper before mailing the payments. Then put the copies of each payment in your income tax file for that year. That way, it will be readily available when we prepare your income tax returns.

If you keep good clear records of your estimated tax payments, tax time will be easy and you can stay off the IRS mailing list.

Thanks for reading!!!
Frank

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